Post on 03-Apr-2018
7/28/2019 CITA 2007 Report
1/69
7/28/2019 CITA 2007 Report
2/691
CITA ANNUAL REPORT 2007
Construction Industry Training Authority
Our Vision
To be the leader and pacesetter
in construction training and craft accreditation
Our Mission
We will achieve our vision by:
- setting standard of craft accreditation
- integrating technological advances
- delivering quality training
- fostering professional ethics
- nurturing safety awareness at work
7/28/2019 CITA 2007 Report
3/692
CITA ANNUAL REPORT 2007
PAGE
CHAIRMANS REPORT 3-7
INTRODUCTION 8-9
MEMBERSHIP 10-12
EXECUTIVE DIRECTOR AND ADMINISTRATIVE STAFF 13
ESSENCE OF TRAINING OPERATIONS AND MANAGEMENT 14-21
COMMITTEE REPORTS 22-27
LEVY INCOME 28
INDEPENDENT AUDITORS' REPORT 29-30
INCOME AND EXPENDITURE ACCOUNT 31
BALANCE SHEET 32
STATEMENT OF CHANGES IN FUND AND RESERVES 33
CASH FLOW STATEMENT 34
NOTES TO THE FINANCIAL STATEMENTS 35-49
APPENDICES 50-68
CONTENTS
7/28/2019 CITA 2007 Report
4/693
CITA ANNUAL REPORT 2007
Chairmans Report
Ir Edgar C .P. Kwa n, JP Chairman
I have great pleasure in submitting this report for the year 2003
on behalf of the Board of the Authority.
This is my first report since I took up chairmanship on the 5th
September 2003. It is indeed a great privilege for me to be appointed
as Chairman. I will uphold the dedication and commitment of ourimmediate past Chairman, Mr. Billy W.H. Wong, and other
distinguished past Chairmen in leading the Authority in its provision
of quality services to the construction industry.
During the past year, this Authority continued to implement
measures and initiatives in response to the recommendations made
in the Report of the Construction Industry Review Committee, which
are relevant to our work; and to make necessary arrangements for
the implementation of the reforms.
Enhancement and Revision of the Ful l - t ime Train ingCourses
Since the 2002/2003 training year, this Authority has extended
the training period of some of the Basic Craft Courses to two years,
and has incorporated a number of generic training elements. The
first batch of trainees also completed two site practices within the
year of 2003. With the support of many employers, all trainees were
able to acquire valuable practical experience. The Authority has
since reviewed the site practice arrangements, with the aim of
providing the best pre-employment training to the trainees. Besides,
in the past six months, we have conducted a review on the
Construction Supervisor Trainee/Technician Training Programme.
It is recommended to extend this one-year full-time course to two
years, update the course contents, enhance generic education and
In the year 2007, the Hong Kong economy attained a better
growth. The pick-up in wages and earnings, the improved job
prospects and the persistent surge in private sector construction
activities led to an increase in the receipt of construction levy. The
Chief Executive announced in the Policy Address in October 2007
that the Government would undertake 10 infrastructure projects toboost economic growth, including three transport related projects,
four cross-border projects and three urban redevelopment projects.
The economic benefits to be brought about by these infrastructure
projects would total more than $100 billion annually and some
250,000 jobs would be created. All these hammered out an optimistic
prospect for the construction industry. As the training institute for
the industry, this Authority has the responsibility to complement the
policy of the government by strengthening its training efforts to meet
the needs of the industry and the community at large.
One of the major tasks of this Authority in the year 2007 was to
prepare for the amalgamation of CITA and the Construction Industry
Council (the Council) scheduled for 1 January 2008. The statutoryfunctions performed by this Authority will then become those of the
Council. Some of the functions will be taken up by the Construction
Industry Council Training Academy, which will continue to provide
the services rendered by this Authority in the past three decades. In
the second half of the year, this Authority set up a working group on
amalgamation to ensure that every matter in connection with the
amalgamation could be smoothly implemented.
Being the last Chairman of this Authority, I would like to take
this opportunity to review its work in carrying out its statutory
functions, together with its developments over the past three decades:
7/28/2019 CITA 2007 Report
5/694
CITA ANNUAL REPORT 2007
adopt a sandwich training mode. These measures will serve to
strengthen the training contents; and to enable the trainees to acquire
the supervision and management skills of construction supervisorsas well as practical experience before they join the industry on full-
time employ. New promotion strategies will be formulated to attract
young persons with high calibre to join the construction training.
Tra de Tests a nd Construction W ork ers Registration System
To complement the Construction Workers Registration System
(CWRS) expected to be introduced soon by the Government, this
Authority continued to expand in the year the scope of its trade testing
programme for skilled and semi-skilled workers. Those who passed
the tests would be issued certificates certifying their standards of
skills. They would be able to register as skilled or semi-skilled
workers accordingly. The Authority has also completed the vettingof the contents and requirements for all designated trades in the
building and civil engineering sector for which a person may be
registered as a registered skilled worker and registered semi-skilled
worker under the proposed CWRS. Up to the end of April 2004, a
total of 29,634 and 29,494 workers passed the trade tests and
intermediate trade tests respectively.
To assist the workers in preparation for taking the trade tests,
the Authority proposed to produce compact discs to make known
the contents of the practical tests; and to publish the questions of the
written part with answers for workers to do revision before taking
the written tests. As this Authority has agreed a few years ago to
assume the role of registration body under the proposed CWRS,
relevant representations and observations were submitted during the
consultation stage of the legislative process in the year.
Amendments to Ordinance for Levy on Electr ical andM echanical W orks
The Legislative Council passed in March 2004 the Construction
Industry Levy (Miscellaneous Amendments) Ordinance 2004,
empowering this Authority to collect levies from Electrical and
Mechanical (E&M) works for the provision of related training and
trade tests. The Authority studied several options for implementing
the expanded training and trade testing functions for E&M workersin the construction industry. The Vocational Training Council was
subsequently appointed as an agent for CITA in the provision of
these E&M training courses and trade tests for three years initially.
An agreement was signed by both parties at the end of March 2004.
Meanwhile, this Authority would formulate the strategies and develop
long term plans for the trade tests and skills enhancement programmes
for the E&M workers in the construction industry.
Construction Industry Council Bill
In its report published in 2001, the Construction Industry Review
Committee recommended to establish an industry co-ordinating body.
The functions of this statutory body would include: to tender advice
Estab lishme nt a nd M a intena nce of Industrial Tra iningCentres
This Authority was established in September 1975 by theenactment of the Industrial Training (Construction Industry)
Ordinance, and the levy collected from construction works undertaken
in Hong Kong was then spent on establishing and maintaining
industrial training centres to provide training courses for the
construction industry. Upon establishment of the first training centre
in Kowloon Bay in June 1977, the first batch of trainees were enrolled
and over 500 basic craft trainees completed training in the following
year. With the boom in the economy in the 80s, this Authority set
up its second training centre in Kwai Chung in 1982 and its third
training centre in Aberdeen in 1989. Following the commencement
of the operation of the fourth training centre in Sheung Shui, and the
takeover of the training activities of the Aberdeen Training Centre,the Aberdeen Training Centre was renamed as the Management
Training and Trade Testing Centre, and started to offer various kinds
of part-time management and safety training courses and to coordinate
the trade testing programme.
This Authority initially ran only one training centre and now
operates a total of four training and trade testing centres. Besides, it
also established four outdoor training grounds on land granted by
the government to provide practical training space for trainees and
to conduct various types of trade and certification tests. To better
utilize the spatial resources, this Authority conducted a thorough
review of the usage of the centres and the outdoor training grounds
in recent years. The types of training courses and trade tests to beconducted in the premises were redefined in 2007 so that the training
and trade testing could be more effectively conducted.
Provision o f Training Courses for Construction Ind ustry
In its early days, the Authority only provided basic craft courses
and short courses for training, respectively, youngsters who had
completed F.3 and adults who intended to join the construction
industry. From 1980 onwards, it offered a supervisor/technician
training programme for F.5 graduates. In the mid-90s, in response
to the development of the industry and the new legislative
requirements, the Authority introduced numerous continuing
education courses for in-service construction practitioners. Thecoverage of its training provisions was then extended from pre-
vocational to in-service training. The variety of the training courses
was also broadened from the teaching of craft skills to the imparting
of management know-how, safety knowledge, supervisory theories
and the like. At present, this Authority offers more than a hundred
types of training courses for persons intending to join the industry
and for in-service practitioners of various ranks.
After in-depth discussion with related government departments
and organisations, subsequent to a serious crane incident in late July
2007, the Authority, in addition to offering regular courses, introduced
the Tower Crane Worker Silver Card Course. The first class was
then launched in August for in-service workers. Up to the end of
7/28/2019 CITA 2007 Report
6/695
CITA ANNUAL REPORT 2007
and make recommendations to Government on strategic matters,
major policies and legislative proposals that may affect or are
connected with the construction industry; to promote the industryson-going development and improvement; to formulate codes of
conduct; to encourage research activities and the use of innovative
techniques, to name a few. The Government submitted the
Construction Industry Council (CIC) Bill to the Legislative Council
in early 2004. Upon passing of the Bill, the CIC will be established
and this Authority will then be subsumed and become a subsidiary
body under the CIC, and continue to assume the training and trade
testing role and functions. Collection of levies will come under the
CIC. In the year, this Authority also offered comments during the
legislative process of the said Bill, and rendered advice on
enhancement to the levy collection system and other provisions.
Open and Proactive Leadership to Accomplish Our Visiona nd M ission
To meet the Authoritys new challenges, all new and re-
appointed Members and management staff joined me in a brain-
storming session in end November 2003. We reviewed our vision
and mission, and agreed on the following seven objectives for the
coming year:
the Board to set clear and definite work objectives, gain the
commitment of all staff who will dedicate to accomplishing
the goals;
to establish a reliable and effective mechanism which
enhances the process of dissemination of information andpromotes two-way communications;
to unify the employment terms and conditions and to
complete the review on the staff appraisal system;
to complete the review on staff remuneration and benefits;
management staff to lead all staff to develop an enlightened,
cooperative, creative and positive work culture;
to formulate a plan for comprehensive review of the training
and trade testing functions, and to complete major revamps;
and
to review and redesign all major work processes and to
review the deployment of resources for optimum uses.
The management staff immediately initiated action plans to
achieve the above objectives. Up to now, firstfruits were evident in
many areas. As regards the formulation and implementation of the
work objectives, the Board and the management have established
effective communication mechanism. The Efficiency Enhancement
Committee continues to monitor their implementation and revises
them as and when necessary. In respect of staff communication, all
staff members were invited to attend a briefing on the seven work
objectives set for the year 2004 following the brain-storming session.
Besides, regular meetings of the Management Committee, Staff
Consultative Committee, and individual training centres were
resumed.
2007, a total of 20 classes were conducted and over 340 workers
were trained. Moreover, this Authority also thoroughly considered
offering a series of training courses in relation to the operation ofcranes, and planned to offer seven such courses in the years to come.
These included the Construction Materials Rigger Silver Card Course,
launched in October 2007, which by years end comprised a total of
nine classes, catering to more than 240 trainees. In addition, in line
with the growing interest of the community in heritage preservation
and repair, the Authority offered an Introductory Course on
Conservation Built Heritage. The Authority will actively pursue the
development of other training courses in relation to the preservation
of heritage.
Endeavours by the government to introduce the Qualifications
Framework, and the 3+3+4 new senior secondary academic structure
to be implemented in the 2009/10 school year, will affect intakes ofthe Basic Craft Courses and Supervisor/Technician Programme,
because most Form 3 students would be directly admitted to Form 4
and Form 5 graduates to Form 6. The Authority continued to actively
review the training courses, including training content, level, mode,
admission requirements and paths for further studies, in order to meet
future developments.
From 1977 to the end of 2007, this Authority trained a total of
1.16 million man times, out of which over 60,000 man times
completed the full-time courses and 1.1 million man times the part-
time courses. This clearly evidenced the popularity of the training
courses.
Certifica tion and Tra de Tests for Construction W ork ers
Since 1990, this Authority has been conducting trade tests for
construction craftsmen of six main trades. From 1998 onwards we
offered intermediate trade tests for semi-skilled construction workers
to ascertain the standards of their skills. Over this period, the number
of trades covered by the Authoritys Trade Testing Scheme increased
gradually in line with the contractual requirement that public works
projects must engage a certain percentage of qualified craftsmen on
construction sites. Later, we actively increased the number of building
and civil engineering trades covered by the Trade Testing Scheme
so as to complement the implementation of the construction workers
registration system by the government. At present, the number oftrades available for trade tests and intermediate trade tests has
increased to 54 and 28 respectively. In addition, from 1993 onwards,
we conducted certification tests and certification courses cum tests
for construction plant operators. These construction plants included
gondolas, builders lifts, cranes and load-shifting machines.
Subsequent to the amendment to the Ordinance, from 2005
onwards the Authority has introduced intermediate trade tests and
trade tests for a total of 12 construction related E&M trades.
By the end of 2007, a total of 63,000 trade tests and 46,000
intermediate trade tests were conducted for the building and civil
engineering trades. Whereas, 1,800 trade tests and 11,000
intermediate trade tests in total were conducted for the construction
7/28/2019 CITA 2007 Report
7/696
CITA ANNUAL REPORT 2007
For the staff appraisal system, I was given to understand that a
review on the existing appraisal system, the format of the appraisal
forms and the mechanism of awarding annual increment were nearcompletion. Proposed changes would be submitted shortly for the
consideration of the relevant Committee. In line with the overall
work objectives of the Authority, the management is in the process
of developing a strategic human resources management plan and a
systematic staff training and development scheme.
Whilst the consultancy study on the remuneration, benefits and
employment conditions of the staff is still on-going, the management
has taken measures to contain the number of staff through flexible
and optimal deployment of staff. The related Committee would soon
initiate an overall review of the rationale for and the amount of
existing allowance with a view to bringing them in line with prevailing
practices in Hong Kong.
Since last December, the management adopted an open and
proactive attitude at work, which should cascade down to all levels
of staff. It also took a holistic and realistic approach in implementing
the policy proposals and work plans. This would help developing
an open and positive work culture. Regarding the comprehensive
review and rationalization of major work processes, individual cost
centres have completed the review of existing processes within their
responsibilities, and was in the midst of streamlining and proofreading
them.
I am confident that with the solid experience gained over the
years in carrying out reforms and with the full support of all membersof staff, we will achieve the desirable outcomes relevant to the work
objectives set by the Authority.
In line with the expanded statutory functions, the membership
of this Authority will be changed to include representatives from the
Hong Kong Federation of Electrical and Mechanical Contractors Ltd.
and the Union for Electrical and Mechanical Workers in the
construction industry. The end of the term of office of the current
Board Members will be advanced to the 31st May 2004. I would
like to thank my fellow Board Members for their invaluable advice
on the formulation of policies and mid- to long-term development
plans of the Authority. Not least for their active participation in thework of various committees in steering the implementation of major
work plans and policies. On behalf of the Authority, I would like to
record our gratitude to Mr. Wong Man-kai who will leave us at the
end of May 2004, and those members who retired in September 2003.
They included Mr. Louis H.W. Wong, Mr. Dominic K.K. Lam, Mr.
Fung Kin-chor and Dr. Howard C.H. Cheng; Mr. Chow Tung-shan,
the public officer who left the Board on transfer to another division
within his department; and Mr. Gordon W.F. Cho, the long-serving
Board Member who has taken up the post of Executive Director since
December 2003. I would also like to welcome Mr. Wan Koon-sun
who will join the Board in the coming June representing electrical
and mechanical workers in the construction industry.
related E&M trades. In addition, the number of certification tests
and re-validation tests conducted for construction plant operators
reached 70,000 man times.The Authority regularly reviewed and expanded the contents
and types of the trade tests with the related government departments
and organisations connected with the construction industry. In order
to enable construction workers to gain the recognised qualifications,
so as to meet the legislative requirements and enhance the status of
construction workers, the Authority offered the required trade tests
to set standards for various construction skills. Certification of the
skill levels of frontline construction workers will also help enhance
the overall quality of local construction work.
Placement of Persons Completing Training Courses
To enable trainees to put into practice what they have learntand to join the construction industry upon graduation, this Authority
has been providing placement services for graduates of the full-time
training courses. In 1998, this Authority launched the Employers
Subsidy Scheme, encouraging employers to employ full-time
graduates on a monthly-salary basis, to sign apprenticeship contracts
with them and to provide in-service training. The Trainees Placement
Section of this Authority regularly visits and counsels the apprentices
to provide support. Since its launch, the Scheme has been well
received by the employers, and has enabled a significant number of
graduates to complete systematic on-the-job training.
Up to the end of 2007, a total of 1,994 applications for subsidy
were approved and 1,325 apprenticeship contracts were processedby the Authority. We continue to provide the placement service to
assist graduates to join the construction industry so as to replenish
the construction workforce.
Construction W ork ers Registration
The Authority was appointed as the Registrar of Construction
Workers in February 2005, and started to offer registration services
for construction workers through the Workers Registration Office
established in late 2005. The number of applications for registration
submitted by construction workers surged drastically before the
implementation, on 1st September 2007, of the Phase One Prohibition,
under which employers are prohibited from employing unregisteredworkers to carry out construction work on construction sites. This
Authority immediately put in place a number of contingency
measures. Resources and manpower were swiftly redeployed to
process over 20,000 applications for registration within a month, to
enable workers to register before the deadline.
By the end of the year 2007, over 220,000 applications for
registration were processed by the Workers Registration Office, and
efforts continue to be made to complement enforcement of the
Construction Workers Registration Ordinance.
In addition, at the request of the Construction Workers
Registration Authority (CWRA), four specified training courses were
offered specifically for registered skilled workers (provisional) in
7/28/2019 CITA 2007 Report
8/697
CITA ANNUAL REPORT 2007
In closing, I would like to express my wholehearted appreciation
to members of staff of this Authority who worked hard and withdedication, and to the HKSAR Government and the industry for their
unfailing support. I sincerely hope that we can continue to count on
your support and guidance in discharging our existing and expanded
functions.
Edgar C.P. Kwan
Chairman
May 2004
July 2007, as a route other than the passing of relevant trade tests for
these workers to apply for registration as Registered Skilled Workers.
Up to the end of 2007, a total of 66 provisionally registered skilledworkers successfully completed the assessment and became eligible
to apply for registration as Registered Skilled Workers for the trades
concerned. This Authority will continue working with CWRA to
monitor provisional registration of the remaining trades and to
introduce the required specified training courses for workers to
complete within three years after provisional registration, so that they
can apply for registration as Registered Skilled Workers.
Financial Situation
Construction levy collected from the local construction projects
is the main source of operating income of the Authority. Throughout
the years, this Authority has strived to put in place various cost savingand efficiency enhancement measures to maintain a healthy financial
condition so that its operations would not be affected by the ups and
downs of the economy. Up to the end of 2007, the funds of this
Authority amounted to $380 million, and according to the
Construction Industry Council Ordinance all assets of this Authority
had to be vested in the Council on 1 January 2008 to carry out its
statutory functions for the construction industry.
Looking Ahead
I was appointed as Chairman of the Construction Industry
Training Authority in September 2003 and since then I have submitted
four reports on behalf of CITA. This report will be the last reportsubmitted by this Authority. I am deeply grateful to all Authority
Members and to the staff of CITA for their support, which resulted
in smooth implementation of various policies over the years.
Services provided by CITA over the last thirty years and the
efforts made in training and trade testing work have gained wide
recognition. With the imminent amalgamation with the Council, I
strongly believe that all the staff of CITA will continue to work hard
and discharge their duties diligently and enthusiastically in the new
organisation. I would also like to thank again all the past Authority
Members who served on CITA.
In closing, I on behalf of CITA would like to express sincere
gratitude to the industry and the HKSAR Government for theirstaunch support over the past three decades, without which this
Authority would not have been able to effectively carry out its
functions and to contribute to the development of the construction
industry.
Ir Edgar C.P. Kwan, JP
Chairman
December 2007
7/28/2019 CITA 2007 Report
9/698
CITA ANNUAL REPORT 2007
Constitution
The Construction Industry Training Authority was established
in September 1975 by the enactment of the Industrial Training(Construction Industry) Ordinance 1975. The membership of the
Authority consists of a Chairman and twelve members, all of whom
are appointed by the Chief Executive. Consequent upon the
enactment of the Construction Industry Levy (Miscellaneous
Amendments) Ordinance 2004 on 1 June 2004, the constitution of
the Authority was revised as follows:
2 shall be persons nominated by the Hong Kong Construction
Association Limited;
1 shall be a person nominated by the Hong Kong Federation
of Electrical and Mechanical Contractors Limited;
1 shall be a person nominated by the Hong Kong Institute of
Architects;
1 shall be a person nominated by the Hong Kong Institute of
Surveyors;
1 shall be a structural engineer nominated by the Hong Kong
Institution of Engineers;
1 shall be a civil engineer nominated by the Hong Kong
Institution of Engineers;
1 shall be a person who holds office as an official of a trade
union representing workers employed in the construction
industry;
1 shall be a person who holds office as an official of a trade
union representing electrical and mechanical workers
employed in the construction industry;
1 shall be a person nominated by the Executive Director of
the Vocational Training Council;
2 shall be public officers; and
1 shall be a person, not being a public officer or person
connected with any of the above-mentioned organizations.
Statutory Functions
According to the Industrial Training (Construction Industry)
(Amendment) Bill 1999, the functions of the Authority include :
to establish and maintain industrial training centres;
to provide training courses for the construction industry; to assist, including to assist by way of financial provision,
in the placement of persons completing training courses;
to make recommendations with respect to the rate of levy;
and
to assess the standards of skills achieved by anyone in any
kind of work involving or in connection with the construction
industry, conduct examinations or tests, issue or award
certificate of competence and establish the standards to be
achieved in respect of such work.
Introduction
7/28/2019 CITA 2007 Report
10/699
CITA ANNUAL REPORT 2007
Besides, the Authority is appointed in February 2005, under
the Construction Workers Registration Ordinance enacted in 2004,
as the Registrar of Construction Workers to perform the functions ofand exercise the powers conferred on the Registrar.
Committees
In the year, the Authority discharged its functions with the
advice of the following standing committees, which comprised
members of the Authority and co-opted members:
Committee on Construction Training Courses
Committee on Building and Facilities Management
Committee on Administration and Human Resources
Committee on Finance and Investment
Committee on Levy
Committee on Trade Testing
Committee on Employers Subsidy Scheme
There are also a number of boards of studies and course advisory
committees to advise on the relevant training programmes. The terms
of reference and membership of the Standing Committees are given
in Appendix 2 whilst those of the Boards of Studies and Course
Advisory Committees are given in Appendix 3.
Meetings
The Authority met 5 times, and its Standing Committees 14
times during the year 2007. The Boards of Studies and various Course
Advisory Committees also held a total of 3 and 28 meetingsrespectively.
7/28/2019 CITA 2007 Report
11/6910
CITA ANNUAL REPORT 2007
Membership(from 1 June 2006 to 31 December 2007)
Chairman
Ir KWAN Chi-ping, Edgar, JP
Nominated by the Hong Kong Construction Association Limited
Members
Ir LEE Wing-kee, Stephen
Nominated by the Hong Kong Construction Association Limited
Mr. CHONG Kin-lit, Paul
Nominated by the Hong Kong Federation of Electrical and
Mechanical Contractors Limited
Mr. CHOI Wun-hing, Donald
Nominated by the Hong Kong Institute of Architects
Mr. CHENG Wai-hung, Nelson
Nominated by the Hong Kong Institute of Surveyors
Ir KWAN Po-jen, Helen
A structural engineer nominated by the Hong Kong Institution of
Engineers
Ir YU Sai-yen
A civil engineer nominated by the Hong Kong Institution of Engineers
Mr. CHOI Chun-wa, MH
An official of a trade union representing workers employed in the
construction industry
Mr. WAN Koon-sun, MH
An official of a trade union representing electrical and mechanical
workers employed in the construction industry
Ir Dr. Chan Wan-ching, Lawrence (from June 2007)
Ir FU Siu-pun (up to May 2007)
Nominated by the Executive Director of the Vocational Training
Council
Mr. TONG Sek-por, David
Representing the Secretary for Development
Mr. TSO Sing-hin
Representing the Commissioner for Labour
Ir TAM King-leung
A person not being a public officer or person connected with any of
the organizations mentioned above
7/28/2019 CITA 2007 Report
12/6911
CITA ANNUAL REPORT 2007
Chairman and M embers of the Authority
Ir Edgar C.P . K wan, JP
M r. Paul K .L. C hong Ir Stephen W.K . Lee Ir Tam K ing Leung
M r. Donald W.H. C hoiIr Helen P.J. K wanM r. Nelson W.H . C heng
M r. C hoi C hun Wa, M H M r. Tso Sing H in M r. Wan K oon Sun, M H
Ir Fu Siu PunIr D r. C han Wan C hingM r. D avid S.P. TongIr Yu Sai Yen
7/28/2019 CITA 2007 Report
13/6912
CITA ANNUAL REPORT 2007
Chairm a n a nd M emb ers of the Construction Industry Training A uthority
(First row from left): Mr. Tso Sing Hin; Ir Tam King Leung; Ir Edgar C.P. Kwan, JP (Chairman); Mr. Wan Koon Sun, MH; Mr. David S.P. Tong
(Back row from left): Ir Yu Sai Yen; Ir Dr. Chan Wan Ching; Mr. Nelson W.H. Cheng
(Absent): Mr. Paul K.L. Chong; Ir Stephen W.K. Lee; I r Helen P.J. Kwan; Mr. Donald W.H. Choi; Mr. Choi Chun Wa, MH
7/28/2019 CITA 2007 Report
14/6913
CITA ANNUAL REPORT 2007
Executive Director
Mr. Charles D.Y. Wong
Administrative Staff
Mr. Wong Chi Lap - Senior Manager (Safety Training & Trade Testing)
Mr. Chu Yin Lin - Senior Manager (Construction Training)
Accounts Department
Mr. Alfred M.H. Wong - Accounting Manager
Mr. Fong Kam Shan - Information Technology Manager
Secretariat
Mrs. Sophie S.Y. Leung - Secretary to Authority
Human Resources Department
Miss Eliva M.Y. Au* - Human Resources Manager
Kowloon Bay Training Centre
Mr. Mok Peng Lam - Centre Manager
Kwai Chung Training Centre
Mr. Chu Yin Lin - Senior Manager (Construction Training)
Sheung Shui Training Centre
Mr. Ho Siu Kwan - Centre Manager
Management and Safety Training Centre
Mr. John W.T. Leung - Centre Manager
Trade Testing Centre
Mr. Edmond Y.W. Lam - Centre Manager
Trainees Recruitment and Placement Department
Mrs. Olivia M.C. Yiu - Trainees Recruitment & Placement Manager
Workers Registration Office
Mr. Law Sai Kit - Registration Manager
Executive Director and Administrative Staff(As at December 2007)
* Ms Au left in January 2008
7/28/2019 CITA 2007 Report
15/6914
CITA ANNUAL REPORT 2007
Essence of Tra ining O pera tions a nd M a na gem ent
Administration and Accounting
At the headquarters of the Authority are the Secretariat,
Accounts Department, Human Resources Department, TraineesRecruitment and Placement Department, and the Construction
Workers Registration Office.
The Secretariat provides committee services and administrative
support. The Accounts Department oversees the financial operations
of the Authority, and the assessment and collection of levy from
contractors. The Human Resources Department is responsible for
the management of human resources of the Authority.
The Trainees Recruitment and Placement Department is
responsible for the recruitment of trainees and the provision of
placement services to persons completing CITA training courses.
The Construction Workers Registration Office, which was established
subsequent to CITA being appointed as the Registrar of Construction
Workers, provides registration services to construction workers.
7/28/2019 CITA 2007 Report
16/6915
CITA ANNUAL REPORT 2007
Training and Trade Testing Centres
The Authority manages four construction training and trade
testing centres located in Kowloon Bay, Kwai Chung, Sheung Shui
and Aberdeen.
The Kowloon Bay Training Centre, opened in 1977, has a total
floor area of about 12,500 square metres. This Centre together with
the Sheung Shui Training Centre, which commenced operations in
1995 and has a total floor area of about 24,000 square metres, are
mainly used for conducting the Basic Craft Courses and the
Construction Supervisor/Technician Programme. Established in
1982, the Kwai Chung Training Centre has a total floor area of around
15,000 square metres. Most of the full-time adult short courses are
conducted in this Centre. The Management Training and Trade
Testing Centre commenced operation in early 1995 with a total floor
area of about 15,400 square metres. The Secretariat, Accounts
Department, Human Resources Department, Trainees Recruitment
and Placement Department, Construction Workers Registration
Office and two centres, i.e. the Management and Safety Training
Centre and the Trade Testing Centre are also housed in this Centre.
The Management and Safety Training Centre offers a wide range of
continuing education courses and safety training courses. The Trade
7/28/2019 CITA 2007 Report
17/6916
CITA ANNUAL REPORT 2007
Testing Centre conducts trade tests for construction craftsmen and
intermediate trade tests for semi-skilled workers.
This Authority also operates a total of 4 outdoor training
grounds. Two of them are located in Sheung Yuet Road and WaiLok Street in Kowloon Bay, with a total plan area of around 27,000
square metres. These two training grounds are mainly used for
conducting short courses, and for outdoor practical training of Basic
Craft Courses and Construction Supervisor/Technician Programme.
There is another training ground in Shatin with a plan area of around
24,000 square metres, where the certification tests of various
construction plants and related short courses are conducted. Some
trade testing activities are also conducted in the Shatin Training
Ground. Situated in Tuen Mun, the fourth outdoor training ground
has a plan area of 12,000 square metres. Certification tests for
loadshifting machinery operations and related short courses are
conducted in this training ground.
7/28/2019 CITA 2007 Report
18/6917
CITA ANNUAL REPORT 2007
Staff
At the end of the year 2007, the Authority employed a total of
373 full-time staff. An organization chart of the Authority is givenin Appendix 1.
During the year under review, a total of about $377,000 was
spent on financing over 1,100 staff development programmes, which
included industrial attachment, site visits, short courses and seminars,
courses/trade tests taken to fulfill CITAs requirements, and courses
on a part-time basis leading to a qualification.
Training Courses
The Authoritys training centres conduct three major categories
of training courses the one-year or two-year full-time courses, full-
time adult short courses and part-time courses. Safety awareness,safe practices at work and occupational ethics have been integrated
into these training courses.
A. One-year or Two-year Full-time Courses
The one-year or two-year full-time courses, which include the
Basic Craft Courses for Secondary Three school-leavers, and the
Construction Supervisor/Technician Programme for Secondary Five
school-leavers, aim at training new blood craftsmen and technicians/
supervisors.
(1) Basic Craf t Courses
The nine Basic Craft Courses on offer include the following:
Two-year programmes
Bricklaying , Plastering and Tiling
Carpentry and Joinery
Painting, Decorating and Sign-writing
Plumbing and Pipe-fitting
Metal Works
Marble-laying
One-year programmes
Construction Plant Maintenance and Repairs
Electrical Installation
Construction ScaffoldingTrainees enrolled on the Basic Craft Courses have to major in
one of the above nine key trades according to their interests and
abilities. Trainees learn the basic skills and knowledge of the selected
trade through practical training in workshops and underlying theories
in classroom. Two-year courses will also include site practice at
different stages of training for trainees to acquire site experience.
Besides, they have to learn another related trade.
The above trades of the Basic Craft Courses, with the exception
of Marble-laying and Metal Works, are all designated trades under
the Apprenticeship Ordinance. On completion of their training with
the Authority, trainees in the designated trades who are under 19
years of age are required by law to enter into apprenticeship contracts
7/28/2019 CITA 2007 Report
19/6918
CITA ANNUAL REPORT 2007
with their employers to receive more organized on-the-job training.
Having completed their apprenticeship and the associated technical
education, trainees will be recognized as a qualified craftsman in therespective trades.
In 2007/2008 training year, the total number of training places
for the one-year and two-year Basic Craft Courses was 631.
(2 ) Construction Supervisor / Technician Program meThis Programme consists of three 2-year diploma courses in
building construction, civil engineering and building services; and
one 1-year certificate course for quantity measurement technician.
Students would be sponsored to take a relevant IVE Part-time Higher
Diploma Course during the course of study at CITA. Site practice
will be arranged at different stages of training for trainees of 2-year
diploma courses to acquire site experience. On completion of this
programme, each trainee is expected to work with a contractor as a
supervisor/technician trainee to acquire hands-on practical
experience. All graduates whilst employed will have to complete
the relevant part-time Higher Diploma Course at the Hong Kong
Institute of Vocational Education to become a qualified supervisor/
technician.
In the 2007/2008 training year, the total number of training
places for the three 2-year diploma supervisor courses and the 1-
year certificate technician course was 249.
B. Full-time Adult Short Courses
Short courses are designed for adults who wish to acquire aspecific construction skill in a relatively short period to enable them
to join the industry. The course duration varies from several weeks
to 6 months and classes are conducted on a need basis. In 2007/2008
training year, a total of about 900 full-time Adult Short Courses
training places would be provided.
C. Part-time Training Courses
The Authority offers a wide range of part-time courses. These
courses are intended for in-service construction personnel who seek
re-training and up-grading in technical skills, or supervisory or
technical knowledge. Whilst some of these part-time courses areopen to the public, some are tailor-made to suit the specific needs of
individual construction companies and other related organizations.
The part-time courses offered by the Authority can be classified
into five main categories:
(i) Skills Enhancement;
(ii) Safety Related;
(iii) Technology and Supervision Related;
(iv) Trade Test Related; and
(v) Commissioned.
Some training courses in categories (ii), (iii) and (iv) are
recognized by a number of Hong Kong professional institutions as
satisfying their Continuing Professional Development Requirements.
7/28/2019 CITA 2007 Report
20/6919
CITA ANNUAL REPORT 2007
Trade Tests and Certification Tests
At present, the trade tests and certification tests conducted by
the Authority are as follows:
(A ) Tr a d e Te s ts Fo r C o n s tr u c ti o n C r a f tsm e n a n dIntermediate Trade Tests
The Authority has been conducting trade tests for craftsmen of
the construction industry since 1990. In the year 2007, the
number of building and civil engineering trades covered by the
Trade Testing Scheme and Intermediate Trade Testing Scheme
were 54 and 28 respectively. To complement the
implementation of the Construction Workers Registration
Ordinance, the Authority provides relevant trade tests for those
trades designated under the Ordinance.
In the year under review, the Authority conducted a total of
4,663 trade tests and 2,837 intermediate trade tests with 2,631
and 2,081 man-times having passed the respective tests. Details
of the trade tests and intermediate trade tests conducted and
their respective passing rates are given in Appendices 4 and 5.
(B) Cert i f ica t ion Tests a nd Cert i f ica t ion Courses ForConstruction Plant Operators
Since 1993, the Authority has been conducting certification tests
and certification courses with certification tests for construction
plant operators. At present, the certification tests and courses
on offer include:
(i) certification tests and re-validation tests for crane operators;
(ii) certification course and re-validation course for person
working on temporary suspended working platform
(gondola);
(iii) certification course and re-validation course for operator
working on builders lift; and
(iv) certification tests and re-validation tests for loadshifting
machine operators.
In the year under review, the Authority conducted a total of
2,072 certification tests / certification courses and 2,339 re-
validation tests / re-validation courses for construction plantoperators with 1,791 and 2,316 man-times having passed the
respective tests / courses.
(C) Trade Tests for Electrical a nd M echanical W orkers andIntermediate Trade Tests
The Construction Industry Levy (Miscellaneous Amendments)
Ordinance passed in 2004 empowers CITA to collect levies
from Electrical and Mechanical works to fund the provision of
related trade tests and training. The Authority started to offer
intermediate trade tests and trade tests for construction related
E&M trades respectively in January and November 2005.
7/28/2019 CITA 2007 Report
21/6920
CITA ANNUAL REPORT 2007
In the year 2007, the Authority conducted a total of 835 trade
tests and 3,203 intermediate trade tests for E&M workers with
496 and 2,570 man-times having passed the respective tests.
At the commencement of the 2007/2008 training year, the
recruitment results of the Basic Craft Courses were satisfactory. The
total number of trainees on roll of the Basic Craft Courses was 401,
representing 91% of the total capacity of 440. By end of December
2007, the total number of trainees still on roll was 279. The dropout
rate is 30%.
At the start of the programme, the number of trainees on roll of
the Construction Supervisor / Technician Programme was 141,
representing 100% of the capacity of 140. Up to the end of 2007, the
number of trainees on roll was 117 and the dropout rate is 17%.
From 1 September to 31 December 2007, the total intake of
trainees on full-time adult short courses was 253, against the capacity
of 300 planned for the same period.
In the 2007/2008 training year, the Authority provides a monthly
basic allowance of $1,400 to trainee of the one-year Basic Craft
courses and first-year trainees of the two-year Basic Craft courses.
The monthly allowance will be slightly increased for trainees in their
second year of the Basic Craft studies.
For the Construction Supervisor/ Technician Programme, eachtrainee will receive a monthly allowance of $2,165.
With the exception of the short course on Computer Aided
Drafting, all trainees of the full-time adult short courses will receive
a daily allowance of $60.
At the end of the 2006/2007 training year, 174 trainees of the
two-year Basic Craft Courses, 157 trainees of the one-year Basic
Craft Courses, 78 trainees of the two-year Construction Supervisor
Diploma Programme, 22 trainees of the one-year Construction
Certificate Technician Programme and 656 trainees of the Full-timeAdult Short Courses completed their training.
In the year under report, the placement results of the graduates
of full-time courses of the Authority was considered satisfactory.
Of the 1,087 graduates of various full-time training courses, 1,049
or 97% of them were placed within the first three months after
graduation. Details of the placement results of the graduates for the
2006/2007 training year are given in Appendix 6.
Open Day and Career Talks
To complement trainees recruitment efforts, centres offering
Basic Craft Courses will hold Open Days annually in the first quarter
7/28/2019 CITA 2007 Report
22/6921
CITA ANNUAL REPORT 2007
to inform members of the general public, community organizations
and secondary schools of the various training programmes provided
by the Authority.In addition, CITA staff regularly visit secondary schools to give
talks on training courses available to youngsters as well as job
opportunities in the construction industry.
7/28/2019 CITA 2007 Report
23/6922
CITA ANNUAL REPORT 2007
Comm ittee Reports
Committee on Construction Training Courses
During the year under review, the Committee met three times
to assess the capacity of training courses and to examine the proposalfor new courses in line with the needs of the construction industry.
In early 2007, the Committee, having reviewed the trainee
enrolment and placement rates for 2006/07, decided to continue to
follow the recommendations contained in the Report of the Strategic
Development Plan, as endorsed by the Authority in August 2005,
for setting the training capacity of full-time and part-time courses in
the 2007/2008 training year. In addition, the Committee also agreed
to make reference to the recent Consumer Price Index in revising
upwards the trainee allowances of all full-time courses, in an attempt
to attract new trainees and to encourage existing trainees to learn
diligently.
Regarding the introduction of new training courses, the
Committee discussed and agreed to offer an Introductory Course on
Conservation Built Heritage. The course, aimed at enhancing the
knowledge of in-service practitioners in heritage conservation, would
be in line with the training needs arising from the growing interest of
the community in heritage preservation and repair.
As for the provision of new safety training courses, the
Committee in mid-2007 approved the introduction of a revalidation
course to cater for the needs of construction personnel who had
completed the one-day Gas Welding Safety Training Course and
had to retake the course upon expiry of the five-year validity period
of their certificates. In response to the tower crane incident in July
2007, the Committee approved the introduction of a two-day Tower
Crane Worker (Installation, Dismantling, and Lifting & Lowering)
Silver Card Course to further enhance the safety of tower crane
operation. In addition, the Committee also approved the introduction
of a Construction Materials Rigger Silver Card Course in October
2007 to enhance the safety awareness of in-service riggers. In order
to continue to meet the training needs of the industry in the safe
operation of tower cranes, the Committee accepted the proposal to
introduce in stages, in the coming years, a number of relevant training
courses including a training course for competent persons in
supervising erection, dismantling and alteration of tower cranes, a
basic skills course in installing tower cranes for junior workmen,
and a training course for derrick crane operators.
Committee on Building and Facilities Management
In the year under review, a number of decisions were made
through circulation of papers on repair/maintenance works to be
carried out in training centres. Towards the end of the year, the
Committee met once to review the progress of these works and of IT
development projects.
In the first half of the year, the Committee accepted the tender
lists in relation to works projects approved in late 2006 and early
2007, including the demolition of two practice structures and the
renovation of two workshops at the Kowloon Bay Training Centre;
7/28/2019 CITA 2007 Report
24/6923
CITA ANNUAL REPORT 2007
together with the replacement of soil pipes and the roof waterproofing
system at the Kwai Chung Training Centre. Related contracts had
been vetted and then awarded by the Committee, and all the aboveprojects were completed in the year.
In respect of the proposal made in 2006, to phase in the
maintenance and repair of all lift installations in all CITA centres
under one term contract, the tender was awarded in the first quarter
of the year 2007, upon receiving approval from the Committee. Since
then, the maintenance and repair of lift installations in the Kowloon
Bay Training Centre, the Sheung Shui Training Centre and the
Management and Trade Testing Centre have been taken over in stages
by the selected contractor; whereas the take over of the lift in the
Kwai Chung Training Centre was scheduled for September 2008.
The Committee also approved a five-year maintenance plan to
re-paint the external walls of all centres. A proposal to employ aconsultant to re-design the main entrances and lobbies of the centres
was approved to enhance public interface facilities, particularly in
regard to the Workers Registration Offices. In view of the
amalgamation of CITA with the Construction Industry Council on 1
January 2008, the Committee endorsed the proposal to change the
signage on the external walls of CITA buildings.
The Committee also reviewed the progress of a number of IT
projects including the Trade Test and Training Course Information
System, Trade Test Management System and Training Course
Management System, and agreed to reorder the priorities of the
projects. In addition the Committee approved the IT Security Study
Project and its related expense, which had been endorsed by the ITWorking Group under the purview of the Committee, in order to
enhance security of information.
Committee on Administration and Human Resources
During the year under review, the Committee met four times to
continue to discuss and examine various administrative and human
resources policies.
The Committee reviewed entry requirements for the posts of
Lecturer (Architect) and Accountant after consideration of the market
trend and the needs of the organisation. The purpose was to attract
the right people. It also reviewed the staff establishment of the threecraft training centres, the Management and Safety Training Centre
and the Trade Testing Centre, having regard to the training and trade
testing needs of the industry.
The Committee proposed to adjust the salaries of staff members,
with reference to adjustment of civil service pay. The proposal to
revise upwards the salaries of staff members in rank by 4.62% or
4.96% from the 1st April 2007 was accepted by the Board of CITA.
The Committee searched for a suitable candidate to fill the position
of Executive Director through open recruitment. The successor was
on board in August 2007.
Having considered the manpower shortage and recruitment
difficulties faced by the Information Technology Section, the
7/28/2019 CITA 2007 Report
25/6924
CITA ANNUAL REPORT 2007
Committee agreed that the Authority collaborate with the local
university for sponsorship of final year students to enhance its system
development. In order to ensure that the job title could reflect theduty of the post, the Committee reviewed job titles at officer grade
and agreed to revise the titles of Personnel Officer, Administration
Officer and Executive Assistant to Personnel Officer I, Personnel
Officer II and Executive Officer respectively, on condition that all
terms and conditions remained unchanged. The Committee also
commended eight staff members in recognition of their outstanding
performance in the year.
With a view to smooth transition, the Committee reviewed the
organisations General Insurance and Group Medical Insurance
Scheme and agreed to extend the relevant policies up to 30 June
2008. In the Group Medical Insurance Scheme, the maximum
reimbursement of out-patient benefits (non-network doctors) wasincreased slightly.
Committee on Finance and Investment
The total income for the year 2007 was $293.31 million,
representing an increase of 13.56% when compared with $258.29
million in 2006. The total expenditure for the year 2007 was $201.01
million. The operating results for the year showed a net surplus of
$92.30 million.
Construction levy, which accounted for about 81.64% of the
total income of the year, was the main source of income of the
Authority. It increased by 15.58% from $207.19 million in 2006 to
$239.46 million in 2007. The increase is mainly due to more income
received from building and civil engineering works undertaken in
private sector. The investment and interest income increased by
26.11% to $14.39 million due to the interest earned from placing
more time deposits into banks. Course fees and related income is
another major type of income for the Authority, increased by 10.40%
from $20.38 million in 2006 to $22.50 million in 2007. The 2007
trade testing income decreased by 28.59% from $7.59 million in
2006 to $5.42 million in 2007 due to less workers taking trade tests
in the year.
Recurrent expenditure in 2007 increased to $201.01 million
representing an increase of 5.31% compared with $190.88 millionin 2006. The major items included:-
Staff costs amounted to $133.59 million in 2007 representing
a slight increase of 2.26% as compared with $130.64 million
in 2006. The increase was mainly due to the salary increment
effective from April 2007
Training expenses increased from $26.59 million in 2006 to
$28.85 million in 2007, representing an increase of 8.50%.
The increase was mainly due to increase in the subsidies
paid under Employer Subsidy Scheme and the staff costs
paid to part-time lecturers
Workshop expenses slightly decreased by 0.95% from
$11.52 million in 2006 to $11.41 million in 2007
7/28/2019 CITA 2007 Report
26/6925
CITA ANNUAL REPORT 2007
General and administrative expenses increased by 24.96%
from $11.34 million in 2006 to $14.17 million in 2007 which
was mainly due to the legal and consultancy fee incurredduring the year
At the end of 2007, the Authority held a total of $386.43 million
as reserves, an increase of 31.07% over 2006. The Authority
continued to place most of the funds in time deposits and bonds with
licensed banks in Hong Kong, and invest a limited sum in listed
shares.
In accordance with the Industrial Training (Construction
Industry) Ordinance, the Authority submitted its annual report for
the year ended 31 December 2006 to the Government of the Hong
Kong Special Administrative Region in June 2007, together with
the audited financial statements for the same period and the auditors
report. These were subsequently tabled and accepted by theLegislative Council.
Committee on Levy
Total levy income of the Authority for the year 2007 was
$239.46 million. This amount represents an increase of 15.58%
compared with $207.19 million in 2006. Levies assessed on the value
of the construction works in the private sector, the public sector and
the Port & Airport Development were $156.95 million, $76.69 million
and $5.74 million respectively, representing 65.55%, 32.02% and
2.40% of the total levy income. In addition, penalty received on
overdue levy was $0.08 million (0.03% of the total levy income).
The resolution of the Legislative Council to increase the levy
rate from 0.25% to 0.4% applies to construction works the tenders
for which were submitted on or after 10 January 2000. Among the
total levy income of $239.45 million in 2007, $1.91 million was
assessed at a rate of 0.25% and $237.54 million was assessed at the
rate of 0.4%.
The Government had appointed 1 June 2004 as the date on which
a levy was to be imposed on the E&M works in the construction
industry to support the expanded construction related E&M training
and trade tests. Construction operations the tenders for which were
submitted after 1 June 2004 would be affected by this amendment.
On 24 February 2005, CITA was appointed as the Registrarunder the Construction Workers Registration Ordinance (Cap 583)
for providing registration services for construction workers, and
performing the levy assessment and collection service for CWRA,
except for the handling of objection cases. The levy imposed is at
the rate of 0.03%.
Committee on Trade Testing
During the year under review, the Committee met once to
continue studying the content of the trade tests for individual trades,
and to monitor the development of various types of trade tests in line
7/28/2019 CITA 2007 Report
27/6926
CITA ANNUAL REPORT 2007
with that of the industry. In addition, the Sub-committee on E&M
Trade Testing under this Committee also met twice in the year to
review the test contents of E&M trades and to make recommendationsfor consideration by the Committee.
Whilst maintaining the quality and standard of the trade tests,
the Committee examined and subsequently accepted the proposal to
introduce an optional practical test paper for the bar-bending trade,
which carries a different weighting for the two parts of fixing and
cut and bend skill-sets of workers to better reflect the actual work
situation.
In addition, the Committee reviewed the selection criteria of
trade test invigilators. As instructors deployed to training centres
would be transferred to the trade testing centre, to serve as invigilators
when necessary, the Committee considered that the selection criteria
of trade test invigilators and instructors should be unified. It wasagreed that, whether or not invigilators and instructors of a trade had
to go through the technical and/or theoretical assessments in the
recruitment process would depend on the nature of the different trades.
In addition, the Committee also had an in-depth discussion over
possible inclusion of the installation of Brackets in the test paper
of the trade of Bamboo Scaffolder, to enhance safety awareness of
in-service practitioners. The Committee also accepted the
recommendation made by the Sub-committee on E&M Trade Testing
to revise the written part of the trade test for Mechanical Fitter
according to the four principles set.
During the year, the Authority continued to conduct various
tests for construction practitioners. As at 31 December 2007, a totalof 4,663 trade tests, 2,837 intermediate trade tests, 835 E&M trade
tests and 3,203 E&M intermediate trade tests were conducted. In
the meantime, the Authority also conducted a total of 728, 79, 952
and 313 certification tests respectively for operators of gondolas,
builders lifts, cranes and loadshifting machines.
Committee on Employers Subsidy Scheme
During the year under review, the Committee continued to
consider and approve applications for subsidy by employers of
apprentices, and to monitor the implementation and progress of the
subsidy scheme.In early 2007, the Committee set the qualifications required of
trainers of construction supervisor/technician apprentices, to be in
possession of a Higher Certificate/Higher Diploma of related
disciplines or above, or equivalent professional qualification. This
would enable prospective employers to better understand the
Authoritys requirement regarding persons assigned to supervise
apprentices. In addition, the Committee adjusted the guidelines on
salary levels for the scheme, in accordance with the level of basic
salary earned by graduates of the Basic Craft Courses and the Full-
time Adult Short Courses on the first job in the previous year, so that
the guidelines would be in line with the salary level of the construction
industry. Towards the end of the year, the Committee also reviewed
7/28/2019 CITA 2007 Report
28/6927
CITA ANNUAL REPORT 2007
and revised the starting points of the monthly basic salary guidelines
for the reference of employers in remunerating graduates of the
Construction Supervisor/Technician Programme engaged undercontracts of different duration, having referred to the 2007 Payment
Adjustment Guidelines for Technician Apprentices issued by the
Hong Kong Construction Association.
In the year under review, the Committee approved 153
applications in total. These included 32 apprenticeship contracts of
11/2years to three years in duration for Basic Craft graduates and 121
apprenticeship contracts of 21/2years to four years in duration for
construction supervisor/technician graduates. Employers of these
apprentices would receive a monthly subsidy of $1,800 or $2,000
for each apprentice employed in the first year of the apprenticeship
contracts. As at 31 December 2007, a total of 146 CITA graduates
were still receiving apprenticeship training under the scheme.
7/28/2019 CITA 2007 Report
29/6928
CITA ANNUAL REPORT 2007
Levy Income
The Legislative Council passed a resolution on 8 December
1999 to uplift the rate of construction industry levy imposed under
the Industrial Training (Construction Industry) Ordinance (Cap. 317)from 0.25% to 0.4%. Construction works the tenders for which were
submitted on or after 10 January 2000 would be levied based on the
new rate. However, construction projects the value of which does
not exceed HK$1 million are exempted.
Following the amendments to the Industrial Training
(Construction Industry) Ordinance (ITCIO) which came into
operation on 1 June 2004, all exempt items previously not leviable
would be subject to levy assessment and levy in respect of term
contracts would be assessed based on the aggregate value of all
construction operations carried out as required by works orders issued
under a term contract.
7/28/2019 CITA 2007 Report
30/6929
CITA ANNUAL REPORT 2007
Independent Auditors ReportTO THE M EM BERS O F
C O N STRUCTIO N IN DUSTRY CO UN C IL (THE "C O UN C IL")
(Established under the C onstruction Industry C ouncil O rdinance, Hong K ong
Special Administrative Region)
We have audited the financial statements of Construction
Industry Training Authority (the "Authority") set out on pages 31 to
49, which comprise the balance sheet as at 31 December 2007, and
the income and expenditure account, statement of changes in fund
and reserves and cash flow statement for the year then ended, and a
summary of significant accounting policies and other explanatory
notes.
The Councils responsibility for the financialstatements
The Council is responsible for the preparation and the true and
fair presentation of these financial statements in accordance with
Hong Kong Financial Reporting Standards issued by the Hong Kong
Institute of Certified Public Accountants and the Construction
Industry Council Ordinance. This responsibility includes designing,
implementing and maintaining internal control relevant to the
preparation and the true and fair presentation of the financial
statements that are free from material misstatement, whether due to
fraud or error; selecting and applying appropriate accounting policies;
and making accounting estimates that are reasonable in the
circumstances.
Auditor's responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit and to report our opinion solely to
you, as a body, in accordance with section 82(2)(a) of the Construction
Industry Council Ordinance, and for no other purpose. We do not
assume responsibility towards or accept liability to any other person
for the contents of this report. We conducted our audit in accordance
with Hong Kong Standards on Auditing issued by the Hong Kong
Institute of Certified Public Accountants. Those standards require
that we comply with ethical requirements and plan and perform the
audit to obtain reasonable assurance as to whether the financialstatements are free from material misstatement.
An audit involves performing procedures to obtain audit
evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor's
judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal
control relevant to the entity's preparation and true and fair
presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity's
internal control. An audit also includes evaluating the appropriateness
7/28/2019 CITA 2007 Report
31/6930
CITA ANNUAL REPORT 2007
of accounting policies used and the reasonableness of accounting
estimates made by the Authority, as well as evaluating the overall
presentation of the financial statements.We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements give a true and fair view
of the state of the Authority's affairs as at 31 December 2007 and of
its surplus and cash flows for the year then ended in accordance with
Hong Kong Financial Reporting Standards and have been properly
prepared in accordance with the Construction Industry Council
Ordinance.
Deloitte Touche Tohmatsu
Certified Public Accountants
Hong Kong 2 May 2008
7/28/2019 CITA 2007 Report
32/6931
CITA ANNUAL REPORT 2007
7/28/2019 CITA 2007 Report
33/6932
CITA ANNUAL REPORT 2007
The financial statements on pages 31 to 49 were approved and
authorised for issue by the Construction Industry Council on 2 May
2008 and were signed on its behalf by:
Mr. Billy W.H. Wong, JP
CHAIRMAN, CONSTRUCTION INDUSTRY TRAINING BOARD
Ir Edgar C.P. Kwan, JP
MEMBER, COMMITTEE ON ADMINISTRATION AND FINANCE
7/28/2019 CITA 2007 Report
34/6933
CITA ANNUAL REPORT 2007
7/28/2019 CITA 2007 Report
35/6934
CITA ANNUAL REPORT 2007
7/28/2019 CITA 2007 Report
36/6935
CITA ANNUAL REPORT 2007
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2007
1 . G EN ERA L
The Construction Industry Training Authority (the
"Authority") was established in Hong Kong Special
Administrative Region under the Industrial Training
(Construction Industry) Ordinance. The Authority was a not-
for-profit organisation and its principal functions were to
provide training courses for the construction industry; establish
and maintain industrial training centers; assist, including to
assist by way of financial provision, in the placement of
persons completing training courses; make recommendations
with respect to rate of levy and assess the standards of skills
achieved by anyone in any kind of work involving or in
connection with the construction industry; conduct
examinations or tests, issue or award certificate of competence
and establish the standards to be achieved in respect of such
work.
The Construction Industry Council Ordinance (the
Ordinance ) was enacted by the Legislative Council on 23
May 2006 and came into operation on 1 January 2008. Under
the Ordinance, the Construction Industry Council (the
"Council") is established as a statutory body. Amongst other
functions, it provides guidance to the Authority and set
directions for its work. Moreover, the construction levieswould also be used to support the daily operations of the
Council as well as other activities that will benefit the
construction industry at large. On 1 January 2008, the
Authority was dissolved and subsumed under the Council as
a committee named as the Construction Industry Training
Board.
The address of the registered office and principal place of
operation of the Authority was 95 Yue Kwong Road,
Aberdeen, Hong Kong.
The financial statements are presented in Hong Kong dollars,
which is also the functional currency of the Authority.
2. APPLICATION OF N EW AN D REVISED HON G KON GFIN AN CIAL REPORTIN G STAN DARDS
In the current year, the Authority had applied, for the first
time, a number of new standards, amendments and
interpretations (new HKFRSs) issued by the Hong Kong
Institute of Certified Public Accountants (the HKICPA),
which are effective for the financial year beginning from 1
January 2007. The adoption of the new HKFRSs has results
in the following areas:
The impact of application of HKFRS 7 Financial
instruments: Disclosures has been to expand the
7/28/2019 CITA 2007 Report
37/6936
CITA ANNUAL REPORT 2007
disclosures provided in the financial statements regarding
the Authority's financial instruments, especially on the
sensitivity analysis to market risk. The impact of application of HKAS 1 (Amendment) "Capital
Disclosures" has been to disclose information regarding its
objectives, policies and processes for managing capital.
The application of the remaining new HKFRSs has had no
material effect on how the results and financial position of the
Authority for the current or prior accounting periods were
prepared and presented. Accordingly, no prior period
adjustment has been required.
The Authority did not early adopt the following new or revised
standards or interpretations that have been issued but are not
yet effective. The Authority had assessed the potential impact
and so far concluded that the application of these standards or
interpretations would have no material impact on the results
and financial position of the Authority.
7/28/2019 CITA 2007 Report
38/6937
CITA ANNUAL REPORT 2007
3 . SIG N IFICA N T A CCO U N TIN G PO LICIES
The financial statements have been prepared on the historical
cost basis except for certain financial instruments which aremeasured at fair values and in accordance with Hong Kong
Financial Reporting Standards, issued by the HKICPA. The
principal accounting policies adopted are as follows:
Recognition of income
Income is measured at the fair value of the consideration
received or receivable.
Levy income is accounted for on an accrual basis and is
recognised upon the assessment of the value of construction
works by the Authority.
Course fee and related income and trade testing income are
recognised over the period of instruction or testing.
Registration service fee income is recognised when the
services are rendered.
Dividend income from investments is recognised when the
Authority's right to receive payment has been established.
Interest income from a financial asset is accrued on a time
basis, by reference to the principal outstanding and at the
effective interest rate applicable, which is the rate exactly
discounts the estimated future cash receipts through the
expected life of the financial asset to that asset's net carrying
amount.
Property, plant and equipment
Property, plant and equipment are stated at cost less subsequent
accumulated depreciation and accumulated impairment losses.
Depreciation is provided to write off the cost of items of
property, plant and equipment over their estimated useful lives
and after taking into account of their estimated residual value,
using the straight-line method.
An item of property, plant and equipment is derecognised upon
disposal or when no future economic benefits are expected to
arise from the continued use of the asset. Any gain or loss
arising on derecognition of the asset (calculated as the
difference between the net disposal proceeds and the carryingamount of the item) is included in the income and expenditure
account in the year in which the item is derecognised.
Impairment
At each balance sheet date, the Authority reviewed the carrying
amounts of its assets to determine whether there is any
indication that those assets have suffered an impairment loss.
If the recoverable amount of an asset is estimated to be less
than its carrying amount, the carrying amount of the asset is
reduced to its recoverable amount. An impairment loss is
recognised immediately in the income and expenditure
account.
7/28/2019 CITA 2007 Report
39/6938
CITA ANNUAL REPORT 2007
Where an impairment loss subsequently reverses, the carrying
amount of the asset is increased to the revised estimate of its
recoverable amount, but so that the increased carrying amountdoes not exceed the carrying amount that would have been
determined had no impairment loss been recognised for the asset
in prior years. A reversal of an impairment loss is recognised
immediately in the income and expenditure account.
Financial Instruments
Financial assets and financial liabilities are recognised on the
balance sheet when the Authority became a party to the
contractual provisions of the instruments. Financial assets and
financial liabilities are initially measured at fair value.
Transaction costs that are directly attributable to the acquisition
or issue of financial assets and financial liabilities are added to
or deducted from the fair value of the financial assets or financialliabilities, as appropriate, on initial recognition.
Financial assets
The Authority's financial assets are classified into one of the
following categories, including loans and receivables, held-to-
maturity investments and available-for-sale financial assets. All
regular way purchases or sales of financial assets are recognised
and derecognised on a trade date / settlement date basis. Regular
way purchases or sales are purchases or sales of financial assets
that require delivery of assets within the time frame established
by regulation or convention in the marketplace.
Effective interest method
The effective interest method is a method of calculating the
amortised cost of a financial asset and of allocating interest
income over the relevant period. The effective interest rate is
the rate that exactly discounts estimated future cash receipts
(including all fees on points paid or received that form an integral
part of the effective interest rate, transaction costs and other
premiums or discounts) through the expected life of the financial
assets, or , where appropriate, a shorter period.
Loans and receivables
Loans and receivables are non-derivative financial assets with
fixed or determinable payments that are not quoted in an activemarket. At each balance sheet date subsequent to initial
recognition, loans and receivables (including levy receivables,
other receivables, amount due from Construction Industry
Council and cash and deposits at banks) are carried at amortised
cost using the effective interest method, less any identified
impairment losses (see accounting policy on impairment loss
on financial assets below).
Held-to-maturity investments
Held-to-maturity investments are non-derivative financial assets
with fixed or determinable payments and fixed maturities that
the Authority's management has the positive intention and ability
7/28/2019 CITA 2007 Report
40/6939
CITA ANNUAL REPORT 2007
to hold to maturity. At each balance sheet date subsequent to
initial recognition, held-to-maturity investments are measured
at amortised cost using the effective interest method, less anyidentified impairment losses (see accounting policy on
impairment loss on financial assets below).
Available-for-sale financial assets
Available-for-sale financial assets are non-derivatives that are
either designated or not classified as financial assets at fair
value through profit or loss, loans and receivables or held-to-
maturity investments.
At each balance sheet date subsequent to initial recognition,
available-for-sale financial assets are measured at fair value.
Changes in fair value are recognised in the investment
revaluation reserve, until the financial asset is disposed of or
is determined to be impaired, at which time, the cumulative
gain or loss previously recognised in the investment
revaluation reserve is removed from the reserve and recognised
in the income and expenditure account (see accounting policy
on impairment loss on financial assets below).
Impairment of financial assets
Financial assets, other than those at fair value through profit
or loss, are assessed for indicators of impairment at each
balance sheet date. Financial assets are impaired where there
is objective evidence that, as a result of one or more events
that occurred after the initial recognition of the financial asset,
the estimated future cash flows of the financial assets havebeen impacted.
For an available-for sale equity investment, a significant or
prolonged decline in the fair value of that investment below
its cost is considered to be objective evidence of impairment.
For all other financial assets, objective evidence of impairment
could include:
significant financial difficulty of the issuer or counterparty;
or
default or delinquency in interest or principal payments;
or
it becoming probable that the borrower will enter
bankruptcy or financial re-organisation.
For certain categories of financial asset, such as levy
receivables, other receivables and amount due from
Construction Industry Council, assets that are assessed not to
be impaired individually are subsequently assessed for
impairment on a collective basis. Objective evidence of
impairment for a portfolio of receivables could include the
Authority's past experience of collecting payments, an increase
in the number of delayed payments in the portfolio past the
average credit period, observable changes in national or local
economic conditions that correlate with default on receivables.
7/28/2019 CITA 2007 Report
41/6940
CITA ANNUAL REPORT 2007
For financial assets carried at amortised cost, an impairment
loss is recognised in the income and expenditure account when
there is objective evidence that the asset is impaired, and ismeasured as the difference between the asset's carrying amount
and the present value of the estimated future cash flows
discounted at the original effective interest rate.
For financial assets carried at cost, the amount of the impairment
loss is measured as the difference between the asset's carrying
amount and the present value of the estimated future cash flows
discounted at the current market rate of return for a similar
financial asset. Such impairment loss will not be reversed in
subsequent periods.
The carrying amount of the financial asset is reduced by the
impairment loss directly for all financial assets with the
exception of levy receivables, other receivables, and amountdue from Construction Industry Council, where the carrying
amount is reduced through the use of an allowance account.
Changes in the carrying amount of the allowance account are
recognised in the income and expenditure account. When a
levy receivable, other receivables and amount due from
Construction Workers Registration Authority and amount due
from Construction Industry Council is considered uncollectible,
it is written off against the allowance account. S u b s e q u e n t
recoveries of amounts previously written off are credited to the
income and expenditure account.
For financial assets measured at amortised cost, if, in a
subsequent period, the amount of impairment loss decreases
and the decrease can be related objectively to an event occurring
after the impairment losses was recognised, the previously
recognised impairment loss is reversed through income and
expenditure account to the extent that the carrying amount of
the asset at the date the impairment is reversed does not exceed
what the amortised cost would have been had the impairment
not been recognised.
Impairment losses on available-for-sale equity investments will
not be reversed in the income and expenditure account in
subsequent periods. Any increase in fair value subsequent