The department has followed the government's policy of the cost-effective outsourcing of non-core activities to the private sector in the provision of public services. Major outsourced services include cleansing, security guards, horticultural maintenance and sports centre management. By the end of 2005, the department managed 129 outsourced contracts covering both leisure and cultural facilities at a total value of $1,422 million. The main objective of outsourcing was to enhance the department's efficiency and to achieve savings.

	The cleansing of swimming pools has been outsourced.

In drawing up the outsourcing plans, the department has adopted a set of pre-determined principles:

The department has contracted out the management services of 13 sports centres since 2000, with a view to delivering quality services to the public in a more cost-effective manner and making use of the private sector's expertise in the management of these facilities. The 13 sports centres that have been contracted out are the Jockey Club Tuen Mun Butterfly Beach Sports Centre in 2000, the Quarry Bay Sports Centre, the Island East Sports Centre, the Chun Wah Road Sports Centre, the Cheung Sha Wan Sports Centre and the Chuk Yuen Sports Centre in 2001, the Choi Hung Road Sports Centre, the Wo Hing Sports Centre, the North Kwai Chung Tang Shiu Kin Sports Centre and the Ap Lei Chau Sports Centre in 2004, and the Fa Yuen Street Sports Centre, the Wong Chuk Hang Sports Centre and the Tai Kok Tsui Sports Centre in 2005.

Also in 2005, the department contracted out the management and support services of the Hong Kong Heritage Discovery Centre and the URBTIX back-end ticketing system and related services. A revamped URBTIX system is targeted to be launched in the second half of 2006.

	The management and support services of the Hong Kong Heritage Discovery Centre have been contracted out.

The department has planned to outsource the customer support, cleansing and security guard services of the yet to be opened heritage trail visitors centre in Yuen Long, which was converted from the Old Ping Shan Police Station, by the end of 2006 and the Dr Sun Yat-sen Museum in early 2007.

	The heritage trail visitors centre converted from the Old Ping Shan Police Station in Yuen Long.

Contract Management

The exploitation of non-skilled workers engaged under government contracts is a public concern. In addition to adopting a standard employment contract to prevent contractors from evading their obligations as employers, the department has put in place a stringent monitoring mechanism to protect the wages and employment benefits of workers. Regular meetings are held between the headquarters contract management team and the senior management of contractors to appraise their performance and exchange views on contract management issues and related policies. These meetings provide effective forums for the department to convey the message of zero-tolerance for the exploitation of non-skilled workers and to enhance mutual communication on contract management.

In 2005, the department terminated two service agreements as a result of contractor failures to fulfil contractual obligations. This serves as a strong signal of our determination and commitment to monitor our service contractors.