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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

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CITA ANNUAL REPORT 2007

CONTENTS

PAGE

CHAIRMAN’S 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

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CITA ANNUAL REPORT 2007

Chairman’s Report

Ir Edgar C.P. Kwan, JP Chairman

In the year 2007, the Hong Kong economy attained a better


growth.I have great
The pleasure
pick-up in in submitting
wages this reportthe
and earnings, forimproved
the year 2003job
on behalf of the Board of the Authority.
prospects and the persistent surge in private sector construction
activities
Thisled to an
is my increase
first in the Ireceipt
report since took upofchairmanship
construction levy.on theThe
5th
Chief Executive
September 2003. announced
It is indeed in the Policy
a great Address
privilege for meintoOctober 2007
be appointed
thatChairman.
as the Government would the
I will uphold undertake
dedication10 infrastructure
and commitment projects to
of our
boost economic
immediate pastgrowth,
Chairman, including three transport
Mr. Billy W.H. Wong, relatedandprojects,
other
four cross-border
distinguished past projects
Chairmen andin three
leading urban redevelopment
the Authority projects.
in its provision
The economic benefits to be brought
of quality services to the construction industry. about by these infrastructure
projects would total more than $100 billion annually and some
250,000During the past
jobs would beyear,
created. thisAll
Authority continued
these hammered outtoanimplement
optimistic
measures and initiatives in response to the recommendations
prospect for the construction industry. As the training institute made
for
in the Report of the Construction Industry Review
the industry, this Authority has the responsibility to complement the Committee, which
are relevant
policy of the to our work;by
government and to make necessary
strengthening arrangements
its training for
efforts to meet
the implementation of the reforms.
the needs of the industry and the community at large.
One of the major
Enhancement andtasks of this Authority
Revision in the year 2007
of the Full-time was to
Training
prepare
Courses for the amalgamation of CITA and the Construction Industry
Council (the Council) scheduled for 1 January 2008. The statutory
Sinceperformed
functions the 2002/2003 by thistraining
Authorityyear,will
thisthen
Authority
becomehas extended
those of the
the training
Council. period
Some of some
of the functions of the Basic
will Craftup
be taken Courses
by the to two years,
Construction
and has incorporated
Industry Council Training a number
Academy, of generic
which training elements.
will continue The
to provide
first
the services rendered by this Authority in the past three decades. the
batch of trainees also completed two site practices within In
year of 2003.
the second halfWith
of thetheyear,
support
this of many employers,
Authority all trainees
set up a working groupwereon
able to acquireto
amalgamation valuable
ensure practical
that everyexperience. The Authority
matter in connection with has
the
since reviewed the site practice
amalgamation could be smoothly implemented. arrangements, with the aim of
providing
Beingthethebest
lastpre-employment
Chairman of thistraining to theI would
Authority, trainees.likeBesides,
to take
in the
this past six months,
opportunity to reviewwe itshave
workconducted
in carryingaout review on the
its statutory
Construction
functions, Supervisor
together with itsTrainee/Technician
developments over the Training Programme.
past three decades:
It is recommended to extend this one-year full-time course to two
years, update the course contents, enhance generic education and

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CITA ANNUAL REPORT 2007

Establishment
adopt and
a “sandwich” Maintenance
training mode. Theseof measures
Industrial Training
will serve to
Centres the training contents; and to enable the trainees to acquire
strengthen
the supervision and management
This Authority skills in
was established of September
construction1975
supervisors
by the
as well as practical experience before they join the industry
enactment of the Industrial Training (Construction Industry) on full-
time employ.
Ordinance, andNew promotion
the levy strategies
collected will be formulated
from construction to attract
works undertaken
young
in Hongpersons
Kongwith
washigh
thencalibre
spent toonjoin the construction
establishing training.
and maintaining
industrial training centres to provide training courses for the
Trade Tests and Construction Workers Registration System
construction industry. Upon establishment of the first training centre
To complement
in Kowloon Bay in June the1977,
Construction Workers
the first batch Registration
of trainees System
were enrolled
(CWRS)
and expected
over 500 to betrainees
basic craft introduced soon by
completed the Government,
training in the following this
Authority
year. Withcontinued
the boomtoin expand in the year
the economy in the scope of itsAuthority
80’s, this trade testingset
programme
up its second fortraining
skilled and semi-skilled
centre in Kwai Chungworkers. Thoseand
in 1982 whoitspassed
third
the testscentre
training wouldinbeAberdeen
issued certificates certifyingthe
in 1989. Following their standards of
commencement
skills.
of They would
the operation of thebefourth
able training
to register as skilled
centre in Sheung or Shui,
semi-skilled
and the
workers accordingly.
takeover of the trainingThe Authority
activities hasAberdeen
of the also completed
Training the Centre,
vetting
of the contents and requirements for all
the Aberdeen Training Centre was renamed as the Managementdesignated trades in the
building and civil engineering sector for which a
Training and Trade Testing Centre, and started to offer various kinds person may be
registered
of part-timeasmanagement
a registeredand skilled
safetyworker andcourses
training registered
and tosemi-skilled
coordinate
worker
the tradeunder
testingtheprogramme.
proposed CWRS. Up to the end of April 2004, a
total This
of 29,634
Authority and initially
29,494 ran workers
only onepassed the trade
training centretests and
and now
intermediate
operates a totaltrade teststraining
of four respectively.
and trade testing centres. Besides, it
also established
To assist thefour outdoor
workers training grounds
in preparation on land
for taking the granted by
trade tests,
the government to provide practical training
the Authority proposed to produce compact discs to make known space for trainees and
to
theconduct
contentsvarious types of tests;
of the practical tradeandandtocertification
publish the tests.
questions To better
of the
utilize the spatial resources, this Authority
written part with answers for workers to do revision before conducted a thorough
taking
review of the
the written usageAsofthis
tests. the Authority
centres andhas theagreed
outdoor training
a few yearsgrounds
ago to
in recent years. The types of training courses
assume the role of “registration body” under the proposed and trade tests to be
CWRS,
conducted in the premises were redefined in 2007
relevant representations and observations were submitted during theso that the training
and trade testing
consultation stagecould
of thebelegislative
more effectively
processconducted.
in the year.
Provision
Amendments of Training Courses for
to Ordinance for Levy
Construction Industry
on Electrical and
Mechanical
In its earlyWorks
days, the Authority only provided basic craft courses
and short courses for training, respectively, youngsters who had
The Legislative Council passed in March 2004 the Construction
completed F.3 and adults who intended to join the construction
Industry Levy (Miscellaneous Amendments) Ordinance 2004,
industry. From 1980 onwards, it offered a supervisor/technician
empowering this Authority to collect levies from Electrical and
training programme for F.5 graduates. In the mid-90’s, in response
Mechanical (E&M) works for the provision of related training and
to the development of the industry and the new legislative
trade tests. The Authority studied several options for implementing
requirements, the Authority introduced numerous continuing
the expanded training and trade testing functions for E&M workers
education courses for in-service construction practitioners. The
in the construction industry. The Vocational Training Council was
coverage of its training provisions was then extended from pre-
subsequently appointed as an agent for CITA in the provision of
vocational to in-service training. The variety of the training courses
these E&M training courses and trade tests for three years initially.
was also broadened from the teaching of craft skills to the imparting
An agreement was signed by both parties at the end of March 2004.
of management know-how, safety knowledge, supervisory theories
Meanwhile, this Authority would formulate the strategies and develop
and the like. At present, this Authority offers more than a hundred
long term plans for the trade tests and skills enhancement programmes
types of training courses for persons intending to join the industry
for the E&M workers in the construction industry.
and for in-service practitioners of various ranks.
After in-depth
Construction discussion
Industry with Bill
Council related government departments
and organisations, subsequent to a serious crane incident in late July
2007,IntheitsAuthority,
report published in 2001,
in addition the Construction
to offering Industry
regular courses, Review
introduced
Committee
the Tower Crane Worker Silver Card Course. The first classbody.
recommended to establish an industry co-ordinating was
The
then functions
launchedof inthis statutory
August body would
for in-service include:Up
workers. to tender
to the advice
end of

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CITA ANNUAL REPORT 2007

2007,
and make
a totalrecommendations
of 20 classes were to Government
conducted and on over
strategic
340 workers
matters,
majortrained.
were policiesMoreover,
and legislativethis Authority
proposals alsothat
thoroughly
may affect considered
or are
connecteda series
offering with the of construction
training courses industry;
in relation
to promoteto thethe operation
industry’s of
on-going
cranes, anddevelopment
planned to offer andsevenimprovement;
such courses to informulate
the years codesto come. of
conduct;
These included
to encourage
the Construction
research Materials
activitiesRigger
and theSilveruse of Card
innovative
Course,
techniques,
launched in October
to name 2007,a few.whichThe by year’s
Government
end comprised submitted a totalthe
of
Construction
nine classes, catering
Industryto Council
more than (CIC) 240Billtrainees.
to the Legislative
In addition,Councilin line
in early
with the2004.
growing Upon
interest
passingof theof the
community
Bill, the in CIC heritage
will bepreservation
established
and this
repair,
Authority
the Authority
will then be offered
subsumed an Introductory
and become aCourse subsidiary on
body under the
Conservation Built
CIC, Heritage.
and continue The Authority
to assumewill theactively
trainingpursueand tradethe
testing role and
development of functions.
other training Collection
courses in of relation
levies will to the
come preservation
under the
CIC.
of heritage.
In the year, this Authority also offered comments during the
legislative
Endeavours processby the of government
the said Bill, to introduce
and rendered the Qualifications
advice on
enhancementand
Framework, to the levy
3+3+4 collection
new senior system
secondary
and other academic
provisions.
structure
to be implemented in the 2009/10 school year, will affect intakes of
Open
the Basic and Proactive
Craft CoursesLeadership to Accomplish Programme,
and Supervisor/Technician Our Vision
and Mission
because most Form 3 students would be directly admitted to Form 4
and Form
To meet5 graduates to Form 6. new
the Authority’s The Authority
challenges, continued
all new to actively
and re-
review the training courses, including training
appointed Members and management staff joined me in a brain- content, level, mode,
admission requirements and paths for further
storming session in end November 2003. We reviewed our vision studies, in order to meet
future developments.
and mission, and agreed on the following seven objectives for the
coming Fromyear:1977 to the end of 2007, this Authority trained a total of
1.16 •million
the Board mantotimes,
set clear outand of definite
which over work 60,000
objectives, mangain times
the
completed the full-time
commitment courses
of all and 1.1
staff who willmillion
dedicate man times the part-
to accomplishing
time courses.
the goals; This clearly evidenced the popularity of the training
courses.
• to establish a reliable and effective mechanism which
enhances the process of dissemination of information and
Certification and Trade Tests for Construction Workers
promotes two-way communications;
•Since 1990, this
to unify the Authority
employment has been
termsconducting
and conditions trade testsand for
to
construction craftsmen of six main trades.
complete the review on the staff appraisal system; From 1998 onwards we
offered
• intermediate
to complete trade tests for
the review onsemi-skilled
staff remuneration construction workers
and benefits;
to ascertain the standards
• management staffoftotheir
leadskills.
all staffOver this period,
to develop the number
an enlightened,
of tradescooperative,
covered by the Authority’s
creative Trade Testing
and positive Scheme increased
work culture;
gradually
• toin line withathe
formulate plancontractual requirement
for comprehensive reviewthatofpublic works
the training
projects and
musttrade engage a certain percentage of qualified
testing functions, and to complete major revamps; craftsmen on
construction
and sites. Later, we actively increased the number of building
and civil
• toengineering
review andtrades redesign covered by thework
all major Tradeprocesses
Testing Scheme and to
so as to complement the implementation of
review the deployment of resources for optimum uses. the construction workers
registration system by the government. At present, the number of
tradesThe management
available for trade stafftestsimmediately initiated action
and intermediate trade tests planshasto
achieve the above objectives. Up to now, firstfruits
increased to 54 and 28 respectively. In addition, from 1993 onwards, were evident in
many areas. As regards the formulation and
we conducted certification tests and certification courses cum tests implementation of the
work objectives,plant
for construction the Board
operators. and theThesemanagement
construction have established
plants included
effective communication mechanism. The
gondolas, builder’s lifts, cranes and load-shifting machines. Efficiency Enhancement
Committee
Subsequentcontinuesto the to amendment
monitor theirtoimplementation
the Ordinance, and fromrevises
2005
them as and when necessary. In respect of
onwards the Authority has introduced intermediate trade tests andstaff communication, all
staff members were invited to attend a briefing
trade tests for a total of 12 construction related E&M trades. on the seven work
objectives
By the setendfor the year 2004
of 2007, a totalfollowing
of 63,000 the brain-storming
trade tests and session. 46,000
Besides, regular meetings of the Management
intermediate trade tests were conducted for the building Committee, and Staff
civil
Consultative
engineering trades. Committee, and individual
Whereas, 1,800 trade trainingtestscentres
and 11,000 were
resumed.
intermediate trade tests in total were conducted for the construction

5
CITA ANNUAL REPORT 2007

relatedForE&Mthe staff
trades.
appraisal
In addition,
system,the I was
number
givenof tocertification
understand that testsa
and
review
re-validation
on the existing testsappraisal
conducted system,
for construction
the format of plant
the operators
appraisal
reached
forms and 70,000
the mechanism
man times.of awarding annual increment were near
completion.
The Authority
Proposed regularly
changes reviewed
would be andsubmitted
expanded shortly
the contents
for the
and
consideration
types of theoftrade the relevant
tests withCommittee.
the related government
In line withdepartments
the overall
and
workorganisations
objectives ofconnected
the Authority,with thetheconstruction
managementindustry.
is in the In process
order
to
of enable
developingconstruction
a strategicworkers
human to resources
gain the recognised
management qualifications,
plan and a
so
systematic
as to meet staff
thetraining
legislativeandrequirements
development and scheme.
enhance the status of
construction workers, the Authority offered the required trade tests
Whilst the consultancy study on the remuneration, benefits and
to set standards for various construction skills. Certification of the
employment conditions of the staff is still on-going, the management
skill levels of frontline construction workers will also help enhance
has taken measures to contain the number of staff through flexible
the overall quality of local construction work.
and optimal deployment of staff. The related Committee would soon
initiate an overall
Placement of PersonsreviewCompleting
of the rationale for andCourses
Training the amount of
existing allowance with a view to bringing them in line with prevailing
To enable trainees to put into practice what they have learnt
practices in Hong Kong.
and to join the construction industry upon graduation, this Authority
Since
has been last December,
providing placement theservices
management adopted
for graduates of antheopen and
full-time
proactivecourses.
training attitude at In work,
1998, which should cascade
this Authority launched downthe to all levels
Employers
of staff. ItScheme,
Subsidy also took encouraging
a holistic and realistic
employers approach in implementing
to employ full-time
the policyon
graduates proposals and workbasis,
a monthly-salary plans.to sign
This apprenticeship
would help developingcontracts
an open
with themand andpositive
to provide work culture.training.
in-service Regarding The the comprehensive
Trainees Placement
review and
Section rationalization
of this of major
Authority regularly work
visits andprocesses,
counsels individual
the apprentices cost
centres
to providehavesupport.
completed the review
Since of existing
its launch, processes
the Scheme haswithin
been their
well
responsibilities,
received by the and was in the
employers, andmidst
has of streamlining
enabled and proofreading
a significant number of
graduates
them. to complete systematic on-the-job training.
Up to the end of 2007, a total of 1,994 applications for subsidy
I am confident that with the solid experience gained over the
were approved and 1,325 apprenticeship contracts were processed
years in carrying out reforms and with the full support of all members
by the Authority. We continue to provide the placement service to
of staff, we will achieve the desirable outcomes relevant to the work
assist graduates to join the construction industry so as to replenish
objectives set by the Authority.
the construction workforce.
In line with the expanded statutory functions, the membership
Construction
of this AuthorityWorkers Registration
will be changed to include representatives from the
HongThe Kong Federation
Authority wasofappointed
Electrical as andthe
Mechanical
Registrar Contractors
of Construction Ltd.
and the Union
Workers in Februaryfor Electrical and Mechanical
2005, and started Workersservices
to offer registration in the
construction
for construction industry.
workers The end ofthe
through theWorkers
term of office of the current
Registration Office
Board Members
established in latewill2005.be The
advanced
number toof
theapplications
31st May 2004. I would
for registration
like to thank
submitted bymy fellow Board
construction Members
workers surgedfor their invaluable
drastically advice
before the
on the formulation
implementation, of policies
on 1st September and mid-oftothelong-term
2007, Phase Onedevelopment
Prohibition,
plans of
under the Authority.
which employers Not least for their
are prohibited fromactive participation
employing in the
unregistered
work of various
workers to carrycommittees
out constructionin steering
workthe on implementation
construction sites. of major
This
work plans immediately
Authority and policies. On putbehalf
in placeof the Authority,ofI contingency
a number would like to
record our gratitude
measures. Resources to and
Mr. Wong
manpower Man-kaiwerewho will leave
swiftly us at the
redeployed to
end of May
process over2004,
20,000 andapplications
those members for who retired in
registration September
within a month, 2003.
to
They included
enable workersMr. Louis H.W.
to register before Wong, Mr. Dominic K.K. Lam, Mr.
the deadline.
Fung By Kin-chor
the end andofDr.
theHoward
year 2007, C.H.over
Cheng; Mr. Chow
220,000 Tung-shan,
applications for
the public officer
registration who left the
were processed by Board on transfer
the Workers to another
Registration division
Office, and
within his
efforts department;
continue to be andmade Mr.toGordon
complementW.F. Cho, the long-serving
enforcement of the
Board Member
Construction who hasRegistration
Workers taken up theOrdinance.
post of Executive Director since
December 2003. I at
In addition, would
the also like of
request to welcome Mr. Wan Koon-sun
the Construction Workers
who will joinAuthority
Registration the Board in the coming
(CWRA), June representing
four specified training courses electrical
were
and mechanical
offered specifically workers in the construction
for registered industry.
skilled workers (provisional) in

6
CITA ANNUAL REPORT 2007

July 2007, as a route other than the passing of relevant trade tests for
these workers to apply for registration as Registered Skilled Workers.
In closing, I would like to express my wholehearted appreciation
Up to the end of 2007, a total of 66 provisionally registered skilled
to members of staff of this Authority who worked hard and with
workers successfully completed the assessment and became eligible
dedication, and to the HKSAR Government and the industry for their
to apply for registration as Registered Skilled Workers for the trades
unfailing support. I sincerely hope that we can continue to count on
concerned. This Authority will continue working with CWRA to
your support and guidance in discharging our existing and expanded
monitor provisional registration of the remaining trades and to
functions.
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
Edgar C.P. Situation
Kwan
Chairman
Construction levy collected from the local construction projects
is the main source of operating income of the Authority. Throughout
Mayyears,
the 2004this Authority has strived to put in place various cost saving
and 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 report
submitted 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 their
staunch 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

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CITA ANNUAL REPORT 2007

Introduction

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.

8
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 of
and 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 meetings
respectively.

9
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

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CITA ANNUAL REPORT 2007

Chairman and Members of the Authority

Ir Edgar C.P. Kwan, JP

Mr. Paul K.L. Chong Ir Stephen W.K. Lee Ir Tam King Leung

Mr. Nelson W.H. Cheng Ir Helen P.J. Kwan Mr. Donald W.H. Choi

Mr. Choi Chun Wa, MH Mr. Tso Sing Hin Mr. Wan Koon Sun, MH

Ir Yu Sai Yen Mr. David S.P. Tong Ir Dr. Chan Wan Ching Ir Fu Siu Pun

11
CITA ANNUAL REPORT 2007

Chairman and Members of the Construction Industry Training Authority

(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; Ir Helen P.J. Kwan; Mr. Donald W.H. Choi; Mr. Choi Chun Wa, MH

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CITA ANNUAL REPORT 2007

Executive Director and Administrative Staff


(As at December 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

* Ms Au left in January 2008

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CITA ANNUAL REPORT 2007

Essence of Training Operations and Management

Administration and Accounting


At the headquarters of the Authority are the Secretariat,
Accounts Department, Human Resources Department, Trainees
Recruitment 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.

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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

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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 Wai
Lok 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.

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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 given
in 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 CITA’s requirements, and courses
on a part-time basis leading to a qualification.

Training Courses
The Authority’s 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 Craft 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 Scaffolding
Trainees 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

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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 the
respective 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 Programme


This 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 a
specific 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 are
open 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.

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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) Trade Tests For Construction Craftsmen and


Intermediate 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) Certification Tests and Certification Courses For


Construction 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 builder’s 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 plant
operators with 1,791 and 2,316 man-times having passed the
respective tests / courses.

(C) Trade Tests for Electrical and Mechanical Workers and


Intermediate 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.

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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, each
trainee 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-time
Adult 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

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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.

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CITA ANNUAL REPORT 2007

Committee 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 proposal
for 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;

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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 above
projects 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 a
consultant 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 IT
Working 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 three
craft 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

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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 the
duty 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
organisation’s 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) was
increased 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 million
in 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

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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 incurred
during 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 auditor’s
report. These were subsequently tabled and accepted by the
Legislative 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 Registrar
under 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

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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 recommendations
for 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 was
agreed 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 total
of 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,
builder’s 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
Authority’s 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

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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 under
contracts 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
11/2 years to three years in duration for Basic Craft graduates and 121
apprenticeship contracts of 21/2 years 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.

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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.

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CITA ANNUAL REPORT 2007

Independent Auditor’s Report


TO THE MEMBERS OF
CONSTRUCTION INDUSTRY COUNCIL (THE "COUNCIL")
(Established under the Construction Industry Council Ordinance, Hong Kong
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 Council’s responsibility for the financial


statements
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 financial
statements 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

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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

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CITA ANNUAL REPORT 2007

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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

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CITA ANNUAL REPORT 2007

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CITA ANNUAL REPORT 2007

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CITA ANNUAL REPORT 2007

NOTES TO THE FINANCIAL STATEMENTS


FOR THE YEAR ENDED 31 DECEMBER 2007

1. GENERAL
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 levies
would 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 NEW AND REVISED HONG KONG


FINANCIAL REPORTING STANDARDS
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

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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.

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CITA ANNUAL REPORT 2007

3. SIGNIFICANT ACCOUNTING POLICIES


The financial statements have been prepared on the historical
cost basis except for certain financial instruments which are
measured 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 carrying
amount 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.

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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 amount
does 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 financial
liabilities, 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 active
market. 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

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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 any
identified 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 have
been 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.

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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 is
measured 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 amount
due 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 to
impairment loss is recognised directly in the investment
revaluation reserve. For available-for-sale debt investments,
impairment losses are subsequently reversed if an increase in
the fair value of the investment can be objectively related to an
event occurring after the recognition of the impairment loss.
Financial liabilities
Financial liabilities issued by the Authority are classified
according to the substance of the contractual arrangements
entered into and the definitions of a financial liability and an
equity instrument.
The Authority's financial liabilities are generally classified into
other financial liabilities.

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CITA ANNUAL REPORT 2007

Effective interest method


The effective interest method is a method of calculating the
amortised cost of a financial liability and of allocating interest
expense over the relevant period. The effective interest rate
is the rate that exactly discounts estimated future cash
payments through the expected life of the financial liability,
or, where appropriate, a shorter period.
Financial liabilities
Financial liabilities (including accounts payable and amount
due to Construction Workers Registration Authority) are
subsequently measured at amortised cost using the effective
interest method.
Derecognition
Financial assets are derecognised when the rights to receive
cash flows from the assets expire or, the financial assets are
transferred and the Authority had transferred substantially all
the risks and rewards of ownership of the financial assets. On
derecognition of a financial asset, the difference between the
asset's carrying amount and the sum of the consideration
received and receivable and the cumulative gain or loss that
had been recognised directly in the reserve is recognised in
the income and expenditure account.
Financial liabilities are derecognised when the obligation
specified in the relevant contract is discharged, cancelled or
expired. The difference between the carrying amount of the
financial liability derecognised and the consideration paid and
payable is recognised in the income and expenditure account.
Non-monetary government grants
Government grant takes the form of a transfer of a non-
monetary asset, such as land or other resources, for the use of
the Authority together with the subject asset are recorded at
nominal amount.
Retirement benefit costs
Payments to the retirement benefit scheme are charged as
expenses when employees have rendered service entitling them
to the contributions.

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CITA ANNUAL REPORT 2007

4. FINANCIAL INSTRUMENTS
a. Categories of financial instruments

b. Financial risk management objectives


The Authority had overall responsibility for the establishment
and oversight of the Authority's risk management framework.
The Authority's risk management policies are established to
identify and analyse the risks faced by the Authority, to set
appropriate risk limits and controls, and to monitor risks and
adherence to market conditions and the Authority's activities.
The Authority, through its training and management
standards and procedures, aimed to develop a disciplined
and constructive control environment in which all employees
understand their roles and obligations.
There has been no change to the Authority's exposure to
market risks or the manner in which it managed and
measured.
c. Credit risk management
The Authority reviewed the recoverable amount of the
outstanding balances at each balance sheet date to ensure
that adequate impairment losses are made for irrecoverable
amounts. In this regard, the Authority considered that the
Authority's credit risk is significantly reduced.
The credit risk on the Authority's cash and bank deposits is
limited because the counterparties are banks with high credit
ratings assigned by international credit-rating agencies.
d. Liquidity risk management
Ultimate responsibility for liquidity risk management rests
with the Authority, which has built an appropriate liquidity
risk management framework for the management of the
Authority's short, medium and long-term funding and

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CITA ANNUAL REPORT 2007

liquidity management requirements. The Authority


managed liquidity risk by continuously monitoring forecast
and actual cash flows.
Liquidity and interest risk tables
The following tables detail the Authority's remaining
contractual maturity for its non-derivative financial
liabilities. The tables have been drawn up based on the
undiscounted cash flows of financial liabilities based on
the earliest date on which the Authority could be required
to pay. The table includes both interest and principal cash
flows.

e. Foreign exchange risk


The Authority's functional and presentation currency has
been in Hong Kong dollars since the operations are mainly
in Hong Kong dollars. Accordingly, the Authority
considered the foreign exchange risk is not significant.
Cash flow interest rate risk
The Authority was exposed to cash flow interest rate risk
through the impact of rate changes on interests bearing
financial assets. Interests bearing financial assets are
mainly cash and deposits at banks which are all short term
in nature. Therefore, any future variations in interest rates
will not have a significant impact on the results of the
Authority.
f. Fair value
The fair value of financial assets and liabilities are
determined as follows:
- the fair value of financial assets and financial liabilities
with standard terms and conditions and traded on active
liquid markets are determined with reference to quoted
market bid prices; and
- the fair value of other financial assets and liabilities are
determined in accordance with generally accepted
pricing models based on discounted cash flow analysis
using price from observable current market transactions.
The Authority considered that the carrying amounts of
financial assets and liabilities recorded at amortised cost
in the financial statements approximate their corresponding
fair values.

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CITA ANNUAL REPORT 2007

5. LEVY INCOME

In accordance with the provisions of Section 21 of the Industrial


Training (Construction Industry) Ordinance, a levy was imposed
at the rate of 0.4%, which was applied to construction works,
the tender for which was submitted on or after the 10 January
2000 on the value of all construction works exceeding
HK$1,000,000 undertaken in Hong Kong. Construction
projects the tender for which was submitted before the 10
January 2000 was subject to the old levy rate of 0.25%.

6. INVESTMENT AND INTEREST INCOME

7. OTHER INCOME

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CITA ANNUAL REPORT 2007

8. PROPERTY, PLANT AND EQUIPMENT

The above items of property, plant and equipment are


depreciated over their estimated useful lives, using the straight-
line method, at the following rates per annum:
Building and premises 4% - 10%
Motor vehicles 20%
Computer equipment 20% - 331/3%
Renovation and building facilities 20%
Furniture and fixtures 10%
Facilities, tools, machinery and workshop equipment 20%
Other equipment 10%

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CITA ANNUAL REPORT 2007

9. HELD-TO-MATURITY INVESTMENTS

10. AVAILABLE-FOR-SALE INVESTMENTS

11. LEVY AND OTHER RECEIVABLES

The average credit period on levy receivables granted to the


contractors is 28 days.
No penalty is imposed on the contractor for the first 28 days
from the date of the invoice. Thereafter, penalty is imposed at
5% of the unpaid amount. If the amount of the levy or surcharge,
including any penalty imposed remains unpaid within three
months after the expiry of the specified period of 28 days, a
further penalty of 5% of the unpaid amount will be imposed on
the outstanding balance. The Authority had provided fully for
all receivables overdue for more than two years because based
on historical experience, debtors with age of more than two
years were generally not recoverable.
Included in the Authority's levy receivables balance are debtors
with a carrying amount of HK$876,068 (2006: HK$1,343,805)
which are past due at the reporting date for which the Authority
had not provided for any doubtful debts as there has not been a
significant change in credit quality and the amounts are still
considered recoverable. The Authority did not hold any
collateral over these balances. The average age of these
receivables is 158 days (2006: 152 days).

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CITA ANNUAL REPORT 2007

Aging of past due but not impaired

Movement in the allowance for doubtful debts

In determining the recoverability of levy receivables, the


Authority considered any change in the credit quality of the
levy receivables from the date credit was initially granted up
to the reporting date. The concentration of credit risk is limited
due to the contractor base being large and unrelated.
Accordingly, the Authority believed that there is no further
credit provision required in excess of the allowance for
doubtful debts.
Included in the allowance for doubtful debts are individually
impaired levy receivables with an aggregate balance of
HK$2,205,409 (2006: HK$1,668,117) which have either been
placed under liquidation or in severe financial difficulties. The
Authority did not hold any collateral over these balances.

Other receivables

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CITA ANNUAL REPORT 2007

12. AMOUNT DUE FROM / TO THE CONSTRUCTION WORKERS REGISTRATION AUTHORITY AND
CONSTRUCTION INDUSTRY COUNCIL

The amounts are unsecured, interest-free and repayable on demand.

13. AUDITORS' REMUNERATION

Audit fee and disbursements

14. RETIREMENT BENEFIT SCHEMES

Contributions to the retirement benefit scheme made by the Authority of HK$11,168,685 (2006: HK$10,614,048) are included
in staff costs.

15. TAXATION

No provision for taxation has been made in the financial statements as the Authority is exempted from Hong Kong Profits
Tax.

16. CASH AND DEPOSITS AT BANKS

Cash and deposits at banks comprise cash and demanded deposits held by the Authority with an original maturity of six
months or less. Cash and deposits at bank carry interest at market rates which range from 0.75% to 5.4% (2006: 2.75% to
4.59%) per annum.

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CITA ANNUAL REPORT 2007

17. CAPITAL COMMITMENTS

18. RELATED PARTY TRANSACTIONS

Apart from the outstanding balances with related parties as disclosed in the balance sheet and note 12, during the year, the
Authority entered into the following transactions with a related party.

19. SUBSEQUENT EVENT

Subsequent to the balance sheet date on 1 January 2008, Construction Industry Training Authority (“CITA”) amalgamated
with Construction Industry Council (the “Council”) and became subsumed under the Council. The Council takes up all the
functions and responbilities of CITA. All the assets and liabilities of CITA are carried forward to the Council.

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CITA ANNUAL REPORT 2007

Appendices

NUMBER TITLE PAGE

1 Organisation Chart of the Authority 51-52

2 Committee Membership and Terms of Reference 53-57

3 Membership of Boards of Studies and Course Advisory Committees 58-64

4 Progress Report on Trade Testing of Construction Tradesmen 65-66

5 Progress Report on Intermediate Trade Testing of Construction Tradesmen 67

6 Placement of Graduates of One-year and Two-year Full-time Courses and 68


Full-time Adult Short Courses for the 2006/2007 Training Year

50
Organization Chart of the Authority

Construction Industry Training Authority

Committee on Committee on Committee on Committee on Committee on Committee on


Construction Building & Facilities Administration & Committee on Levy Employers Subsidy
Trade Testing Finance & Investment
Training Courses Management Human Resources
Appendix 1

Scheme
CITA ANNUAL REPORT 2007

1 Executive Director

1 Personal Secretary (I)

1 Senior Manager 1 Senior Manager 1 Consultant


(Safety Training & Trade Testing) (Construction Training)

1 Personal Secretary (II) 1 Personal Secretary (II) 1 Accounting


1 Secretary
Manager
1 Personal
Secretary(II)
1 Trainees Recruitment 1 Centre Manager 1 Centre Manager 1 Registration 1 Centre Manager 1 Centre Manager 1 Centre Manager 1 Information 1 Human
& Placement Manager (Management & (Trade Testing Manager (Kowloon Bay (Sheung Shui (Kwai Chung Technology Resources
Safety Training) Centre) Training Centre) Training Centre) Training Centre) Manager Manager
1 Executive 1 Executive 1 Executive 1 Executive 1 Executive
Officer Officer Officer Officer Officer

11 Lecturers 1 Personnel

51
1 Accountant
Officer I
1 Training 2 Trade Testing 1 Training 1 Trainees 1 Training 1 Training 2 Course
Officer Superintendents Superintendent Recreation Superintendent Superintendent Coordinators 1 Surveying
Superintendent Officer
1 Safety Officer 1 Computer Officer 2 Assistant 1 Computer 1 Personnel
2 Registration Secretaries Officer Officer II
1 Leader of CPU Officers

9 Trainees Recruitment 3 Accounting


& Placement Officers Officers
2 Safety Supervisors 12 Senior Instructors Instructing Staff 1 Senior Trainees Instructing Staff Instructing Staff
20 Instructors 5 Senior Instructors Recreation Trainer 5 Senior Instructors 5 Senior Instructors
4 Instructor’s 25 Instructor’s 20 Instructors 5 Trainees Recreation 1 Senior Instructor 20 Instructors
Assistants Assistants 9 Instructor’s Trainers (floading post) 9 Instructor’s
Assistants 30 Instructors Assistants 3 Executive
12 Instructor’s Assistants Trainees
11 Clerical and 4 Purchasing 13 Clerical and 14 Clerical and Other 1 Assistant 10 Clerical and Other 12 Clerical and Other 11 Clerical and Other 10 Clerical and 4 Assistant 15 Accounting, 4 Clerical and
Other Clerks Other Supporting Staff Computer Officer Supporting Staff Supporting Staff Supporting Staff Other Computer Clerical and Other
Supporting Staff Supporting Staff 20 Clerical and Other Supporting Officers Other Supporting
Supporting Staff Staff 1 Programmer Supporting Staff
3 Computer Staff
Assistants

Trainees Management & Trade Testing Workers Kowloon Bay Sheung Shui Kwai Chung Secretariat Accounts Human
Recruitment & Ssfety Training Centre Registration Training Centre Training Centre Training Centre Department Resources
Placement Centre (including 4 training Office Department
Department grounds in Wai Lok Street,
Sheung Yuet Road, Shatin
& Tuen Mun )
Note : Staff Establishment of CITA : 388
Staff Strength of CITA as at 31 December 2007 : 373
CITA ANNUAL REPORT 2007

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CITA ANNUAL REPORT 2007

Appendix 2

Committee Membership and Terms of Reference

(1) Committee on Construction Training Courses


Chairman
Ir Stephen W.K. Lee
Members
Mr. Au Wing-hoi
Mr. Edmond S.C. Chan
Ir Allan S.K. Chan
Mr. Choi Chun-wa, MH
Mr. Donald W.H. Choi
Mr. Choy Hon-ping (up to May 2007)
Mr. Tats T.Y. Chung (from June 2007)
Ir Ho Pun-hing
Ir Max K.W. Ko
Ms. Anny P.S. Law
Ir Tang Wai-keung
Ir Vincent W.S. Tong
Dr. Evia O.W. Wong
Ir Ringo S.M. Yu
Mr. Charles D.Y. Wong (ex-officio)
Terms of Reference :
• To recommend to the Authority on the provision of training
courses
• To recommend to the Authority on budget estimates relating
to the provision of the construction training courses
• To approve the acquisition of training facilities within the
budget provision
• To recommend to the Authority on the ad hoc acquisition of
training facilities not already included in the budget provision

(2) Committee on Building and Facilities Management


Chairman
Mr. Nelson W.H. Cheng
Members
Mr. Chu Tak-sum
Mr. M.C. Ip
Ir Helen P.J. Kwan
Ir Victor W.T. Law
Mr. Keith S.C. Yim
Mr. Charles D.Y. Wong (ex-officio)
Terms of Reference :
• To recommend to the Authority on the undertaking of
physical construction works and major facilities relating to
the development of the training centres or training grounds

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CITA ANNUAL REPORT 2007

• To recommend to the Authority on budget estimates


regarding new construction works, renovation works,
maintenance of major facilities
• To recommend to the Authority on the appointment of
Authorized Persons, Main Contractors, Consultants, Sub-
contractors and Suppliers with respect to physical
construction works undertaken by the Authority
• To monitor the progress of physical construction works
already approved by the Authority
• To make recommendations to the Authority on facilities
management and related issues

(3) Committee on Administration and Human Resources


Chairman
Ir Tam King-leung
Members
Mr. Victor H.H. Chan
Ir Allan S.K. Chan
Mr. Choi Chun-wa, MH
Mr. Fung Kin-chor
Ir Terence T.L. Fung
Ir Helen P.J. Kwan
Ir Derrick Y.B. Pang
Mr. Wan Koon-sun, MH
Ir Yau Kwok-fai
Ir Yu Sai-yen
Mr. Charles D.Y. Wong (ex-officio)
Terms of Reference :
• To recommend to the Authority on budget estimates relating
to staff costs
• To recommend to the Authority on the alterations of staff
establishment and structure
• To recommend to the Authority on staff matters, including
recruitment, salary administration and other conditions of
service
• To advise the Authority on any other personnel matters
• To advise the Authority on administrative policy

(4) Committee on Finance and Investment


Chairman
Ir Edgar C.P. Kwan, JP
Members
Mr. Nelson W.H. Cheng
Mr. Paul K.L. Chong
Mr. Russell G. Jones

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CITA ANNUAL REPORT 2007

Mr. David S.P. Tong


Mr. William K.F. Tsui
Ir T.C.Ying
Ir Yu Sai-yen
Mr. Charles D.Y. Wong (ex-officio)
Terms of Reference :
• To prepare for approval by the Authority annual estimates
of income and expenditure
• To recommend to the Authority appropriate investment tools
to generate income
• To decide on the actual investment of Authority funds within
the guidelines approved by the Authority
• To advise on any other financial matters referred to it by the
Authority

(5) Committee on Levy


Chairman
Mr. Paul K.L. Chong
Members
Mr. Anthony Y.T. Chan
Mr. Nelson W.H. Cheng
Mr. Donald W.H. Choi
Dr. Chiang Yat-hung
Ir Stephen W.K. Lee
Mr. David S.P. Tong
Mr. Terence T.C. Wong
Ir Yu Sai-yen
Mr. Charles D.Y. Wong (ex-officio)
Terms of Reference :
• To recommend to the Authority policies & guidelines in
connection with the enforcement of the Ordinance relating
to levy
• To recommend to the Authority on objections concerning
levy
• To direct the Authority’s Accounts Department to deal with
cases of objection which are not likely to involve litigation
• To exercise the powers delegated by the Authority to deal
with objections in minor cases which may involve litigation.
In this connection a minor case means a case involving an
amount of levy in dispute of not more than $50,000
• To seek the Authority’s endorsement prior to the initiation
of any litigation
• To carry out periodical review of the operations of the
Authority’s Accounts Department relating to levy collection
& assessment

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• To carry out periodical review of the Ordinance concerning


levy and to make recommendations to the Authority on
amendments if necessary

(6) Committee on Trade Testing


Chairman
Ir Helen P.J. Kwan
Members
Mr. Au Wing-hoi
Mr. Chan Chi-hin
Ir William L.S. Chan
Ir Dr. Chan Wan-ching (from June 2007)
Mr. Cho Kai
Ir Michael B.K. Chu
Ir Fu Siu-pun (up to May 2007)
Ir Peter C.K. Kwan
Ir Lai Tim
Mr. Lau Yu-kwan
Mr. Alfred W.H. Leung
Mr. Tang Kai-min
Ir Tang Wai-keung
Ir Vincent W.S. Tong
Mr. Wan Koon-sun, MH
Mr. Charles D.Y. Wong (ex-officio)
Terms of Reference :
• To recommend to the Authority on areas of developments
relating to trade testing and certification
• To recommend to the Authority on the monitoring procedures
and content of trade testing
• To monitor the implementation of trade tests
• To advise the Authority on financial matters relating to trade
testing

(7) Committee on Employers Subsidy Scheme


Chairman
Ir Dr. Chan Wan-ching (from June 2007)
Ir Fu Siu-pun (up to May 2007)
Members
Mr. Chan Wing-lai
Mr. Anthony Y.T. Chan
Mr. Fung Kin-chor
Mr. Man Wai-ming
Mr. Tso Sing-hin
Mr. Robert S.H. Tsoi
Mr. Charles D.Y. Wong (ex-officio)

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Terms of Reference :
• To advise the Authority on the implementation of the scheme
providing subsidies to employers of CITA graduates
• To monitor the implementation of the employers subsidy
scheme
• To recommend to the Authority on budget estimates relating
to the implementation of the employers subsidy scheme

(8) Audit Committee


Chairman
Ir T.C. Ying
Members
Mr. Russell G. Jones
Ir Ambrose S.Y. Cheung
Terms of Reference :
• To consider all matters relevant to and commented by the
external auditor
• To discuss problems and reservations arising from the
financial audits and any matters the external auditor may
wish to discuss
• To review the external auditors management letter and
management’s response
• To review and suggest amendments to the internal guidelines
(including audit programme, audit procedures and
requirements set by the AC) of the Audit Section
• To review the findings and recommendations submitted by
the Audit Section after being reviewed by the Executive
Director
• To review and suggest improvement to the operational and
management controls
• To receive and review compliance reports prepared by the
Audit Section and reviewed by the Executive Director for
the consideration of the Committee on Finance and
Investment as necessary
• To interview members of staff if necessary for the purpose
of familiarizing the AC with the operations of the Authority
• To conduct special examinations as directed by the
Committee on Finance and Investment

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CITA ANNUAL REPORT 2007

Appendix 3

Membership of Boards of Studies and Course


Advisory Committees

(1) Board of Studies on Construction Safety Courses


Chairman
Ir Yu Sai-yen
Members
Mr. Au Wing-hoi
Ir Philip W.K. Chung
Mr. Ivan K.W. Lam
Ir Samuel K.P. Lip
Mr. Stephen K.Y. Siu
Mr. Salony K.S. Yim
Mr. Charles D.Y. Wong (ex-officio)
Terms of Reference :
• To recommend to the Authority on the provision of safety
training courses for in-service construction personnel
• To review and advise on the curriculum and teaching
methods for all safety training courses
• To review and advise on the curriculum, teaching methods
and entry requirements of the Construction Safety Officer
Course and Safety Auditor Training Scheme
• To consider assessment results and make recommendations
on the award of certificates for the Construction Safety
Officer Course and Safety Auditor Training Scheme

(2) Board of Studies on the Construction Supervisor


Certificate Course
Chairman
Mr. Donald W.H. Choi
Members
Mr. Au Wing-hoi
Mr. Leung Siu-man (from October 2007)
Mr. Chan Cho-chak (up to October 2007)
Mr. Jesse Hau
Ir Ho Chi-ming
Ms. Anny P.S. Law
Mr. Charles D.Y. Wong (ex-officio)
Terms of Reference :
• To review and advise on the curriculum, teaching methods
and entry requirements for the Construction Supervisor
Certificate Course

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CITA ANNUAL REPORT 2007

• To review and advise on standards and procedures for


assessment of students on the Construction Supervisor
Certificate Course
• To consider assessment results and make recommendations
on the award of certificates for the Construction Supervisor
Certificate Course

(3) Course Advisory Committee on Bricklaying, Plastering


& Tiling
Chairman
Mr. Eric C.Y. Tse
Members
Mr. Simon Chan
Mr. Cheung Chi-ho
Mr. Choi Yun-tin
Mr. Chow Luen-kiu
Mr. Chung Wai-kee
Ms. Hayley K.B. Lau
Mr. Lui Ka-fai
Mr. Siu Wing-sing
Mr. So Yu-hang
Mr. Wan Wing-cheung
Mr. Yam Yuk-lam
Mr. Yiu Chi-fun

(4) Course Advisory Committee on Carpentry & Joinery


Chairman
Mr. Fung Kin-chung
Members
Mr. Chan Chi-leung
Mr. Cheung Yuk-sun (up to August 2007)
Mr. Tony Y.K. Ku
Mr. Lam Kwong-fai
Mr. Leung Hon-for
Mr. Leung Yi-tong
Mr. Lo Ping-kuen
Mr. Luk Wing-wah
Mr. Ma Cheung-kin
Mr. Flord Y.H. So
Mr. Tang Chung-wo
Mr. Jacky M.C. Wan

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CITA ANNUAL REPORT 2007

(5) Course Advisory Committee on Painting, Decorating


& Sign-writing
Chairman
Mr. Chan Kim-kwong
Members
Ms. Elian Chan
Mr. Chan Ka-kau
Mr. Chan Ping
Mr. Choi Wing-hei
Mr. Chui Kwong-wah
Mr. Kwong Tat-ming
Mr. Leung Chi-shing
Mr. Li Man-choi
Mr. Mok Chiu-cheuk
Mr. Ng Hung-fat
Mr. Tang Kar-shing

(6) Course Advisory Committee on Plumbing & Pipe-fitting


Chairman
Mr. Kenneth S.Y. Chan
Members
Mr. Chong Chun-kuen
Mr. Choy Wai-fung
Mr. Henry C.K. Hung
Mr. Lam Kwok-ling
Mr. Lau Man-shing
Mr. Lau Wan-kwong
Mr. Leung Pui-kai
Mr. Raymond C.Y. Mark
Mr. Mok Wai-wo
Mr. Ng Hak-ming
Mr. Tony K.K. Ng
Mr. Wan Charm-fun
Mr. Wong Chung-choi
Mr. Wong Kwok-keung
Mr. Kenny M.B. Wong

(7) Course Advisory Committee on Construction


Scaffolding Works
Chairman
Ir Frederick Y.P. So
Members
Mr. Chan Kin-man
Mr. Chiu Kwok-leung
Mr. Choi Chi-ming

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CITA ANNUAL REPORT 2007

Mr. Fu Chi-cheung
Mr. Lee Chak-lam (up to August 2007)
Mr. Geoffrey K.W. Lee
Mr. Lee Ping-ho
Mr. Leung Kam-loi
Mr. Mak Wing-hong
Mr. Simon H.S. Pang
Mr. Pang Long
Mr. Wan Yung-man

(8) Course Advisory Committee on Marble-laying


Chairman
Mr. Lawrence Ng
Members
Mr. C.M. Fan
Mr. Fung Chi-on
Ms. Rebecca S.C. Ho
Ms. Ho Wai-ling
Ms. Lee Yin
Mr. Poon Yiu-wah
Mr. Tsieh Chi-kong
Mr. Wong Hon-wing
Ms. Yip Sau-wai

(9) Course Advisory Committee on Construction Plant


Maintenance & Repairs
Chairman
Mr. Li Koon-wah
Members
Mr. Chan Chun-sing
Mr. Chiu Tat-si
Mr. Kwong Shu-keung
Mr. Law Kwok-yin
Mr. Lee Chin-pang
Mr. Liu Chun-fai
Mr. Antonio M.K. Ng
Mr. Oh Sio-liem (up to August 2007)
Mr. Pei Wing-fu
Mr. Yeung Man-fung

(10) Course Advisory Committee on Electrical Installation


Chairman
Mr. Li Koon-wah

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CITA ANNUAL REPORT 2007

Members
Mr. Chan Chi-hin
Mr. Chan Ka-hing
Mr. Addis K.T. Chan
Mr. Caleb Cheng
Mr. Cheung Shun-shing
Mr. Roger K. Hill
Mr. Sunway S.W. Ip
Mr. Kiwin W.O. Lam
Mr. Lee Lap-sun
Mr. Poon Kam-ling
Mr. Siu Chung-bong
Mr. Siu Ho-kuen

(11) Course Advisory Committee on Metal Works


Chairman
Mr. Tam Kwok-kuen
Members
Mr. Chow Ka-chun
Mr. Chu Kwok-wai
Mr. Lam Chung-mau
Mr. Li Man-lung
Mr. Andy K.K. Liu
Mr. Poon Chi-wah
Mr. Tang Chi-keung
Ir Yau Yiu-chin

(12) Course Advisory Committee on Bar -bending & Fixing


Chairman
Mr. Tsang Ting-fat
Members
Mr. Chan Lok-chai
Mr. Hon Sing-bun
Mr. Keung Tak-chuen
Mr. Lee Wai-tat
Mr. Luk Kwan-ngai
Mr. Ng Wing-hei
Mr. Jason T.S. Shin
Mr. Siu King-nam
Mr. Tse Fuk-wah
Mr. Wong Siu-ming
Mr. Yu Wai-ming

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CITA ANNUAL REPORT 2007

(13) Course Advisory Committee on Site Surveying and


Surveying & Setting Out
Chairman
Mr. Wong Thien-nyen
Members
Mr. Lawrence K.C. Chan
Mr. Chau Siu-tong
Mr. Daniel W.K. Fung
Mr. Lau King-to
Mr. Raymond M.C. Li
Mr. Li Yat-cheung
Mr. Ng Hung-fat
Mr. Shum Wai-kwan
Mr. Wong Hang-shing
Mr. Simpson K.K. Wong

(14) Course Advisory Committee on Plant Operation


Chairman
Mr. Lee Siu-wing
Members
Mr. Allen K.T. Cheng
Mr. Cheung Liu-yuen
Mr. Chui Keung-wai
Mr. Nelson C.K. Kan
Mr. Lam Wai-dan
Mr. Lam Wai-tat
Mr. Lin Wai-ming
Mr. Liu Chun-fai
Mr. Wong Fuk-chuen
Mr. Zhao Rong

(15) Course Advisory Committee on Quantity Measurement


Technician Programme
Chairman
Mr. Wong Chung-fat
Members
Mr. Au Wing-keung
Mr. Ambrose H.H. Chan
Mr. Honby S.H. Chan
Mr. Dick W.L. Kung
Mr. Kwok Chi-hang
Ms. Vivian Y.W. Lee
Ms. Tarry W.C. Tang
Mr. Tse Sek-chuen
Mr. Wun Chi-ming

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CITA ANNUAL REPORT 2007

Mr. Yeung Hon-lung


Mr. Henry C.H. Yim
Mr. Yue Man-wai

(16) Course Advisory Committee on Construction


Supervisor Programme
Chairman
Mr. Pele S.K. Lai
Members
Mr. David T.W. Chang
Mr. Chris C.W. Chau (up to May 2007)
Ir Arthur K.M. Cheng
Mr. Raymond S.L. Chu
Mr. Tats T.Y. Chung (from May 2007)
Mr. Joseph T.C. Fei
Mr. Ho Kai-fat
Mr. Lee Chi-ho
Mr. Ken K.F. Li
Mr. Paul Y.C. Lui
Mr. Raymond K.S. Pang
Mr. William K.L. Pau
Mr. Jason T.S. Shin
Mr. Wong Chi-ming

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CITA ANNUAL REPORT 2007

Appendix 4

Progress Report on Trade Testing of Construction Tradesmen (from 01/01/2007 to 31/12/2007)

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CITA ANNUAL REPORT 2007

Appendix 4 (continued)

Progress Report on Trade Testing of Construction Tradesmen (from 01/01/2007 to 31/12/2007)

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CITA ANNUAL REPORT 2007

Appendix 5

Progress Report on Intermediate Trade Testing of Construction Tradesmen (from 01/01/2007 to 31/12/2007)

*1 Other means refer to the award of intermediate trade test certificates to those tradesmen who failed to get a pass in the practical part of the trade test but whose skills were
up to the standard of the intermediate trade test

*2 Based on the 2005 Manpower Survey of the Building and Civil Engineering Industry, Vocational Training Council

*3 Including those tradesmen who were awarded the certificates through other means

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CITA ANNUAL REPORT 2007

Appendix 6

68

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