New HK$122 million lifeguard outsourcing contract sparks public spending concerns

A controversial HK$122 million lifeguard outsourcing contract in Hong Kong has raised questions about the prudent use of public funds. The Leisure and Cultural Services Department defended the decision, stating that it found Spotlight Enterprises to be satisfactory during a two-year trial period and followed the government's procurement procedures closely.

The contract covers six public swimming pools, with Spotlight Enterprises required to deploy 68 staff members daily for each pool. However, the Audit Commission reported that the contractor failed to provide the required staffing on seven occasions between August 2024 and August 2025. The department took up to 305 days to deduct payment and up to 311 days to issue default notices, sometimes not recording these incidents in required monthly performance appraisal reports.

Following the contract extension from two to three years, the company was awarded another tender in July with a 7% increase in value. A civil service lifeguard's salary starts at HK$19,000 to HK$27,000. Nick Wu, vice-chairman of the Hong Kong and Kowloon Life Guards’ Union, criticized the arrangement, stating that all six pools are smaller in scale and did not need many lifeguards.

He pointed out that some lifeguards posted elsewhere made way for the outsourced staff after the first contract was awarded. Wu suggested that Hong Kong only faces a lifeguard shortage in summer, and the situation has recently improved due to the union's collaboration with the government to cover extra shifts. Some public swimming pools close in winter, with lifeguards redeployed to open facilities.

Lawmaker Bill Tang Ka-piu urged the department to test seasonal outsourcing arrangements to potentially save money, proposing dividing pools into groups for year-round or peak-season outsourcing. The department defended the contract, stating that all six pools operated smoothly over the past two years and the outsourcing was effective. The contract's increased price is attributed to the tight manpower supply in the market, rising operational costs, and the need for competitive pay and benefits to recruit lifeguards.