CONFIDENTIAL
Social Welfare and Social Security
44. The White Paper published in June 1973 (produced originally as a consultative document) describes the general aims of social welfare policy. In the division of responsibility with the important voluntary sector, it has been taken as a basis that the Government's primary role is to provide services which either (a) are statutory requirements, (b) are so vital, widespread or complex that only the Government can provide them effectively, or (c) involve other Government Departments and therefore can best ts co-ordinated by the Social Welfare Department.
·
45. There have been important advances in recent years in the relief of poverty, most important perhaps the introduction in 1971 of full Government responsibility for public assistance by means of cash payments to replace relief in kind. (The number of family units in receipt of public assistance is surprisingly small by Western standards - 21,595 in January 1974 - a tribute perhaps to the Chinese family system). A second milestone was the provision in the following year of disability allowances and infirmity allowances (without means test) for persons over 75 years of age.
46. The report of a Working Party on the theme "Care of the elderly within the community" is now available. The report inter alia lays special stress on the importance of providing an assured income for the elderly and recommends that consideration should be given to lowering the qualifying age for infirmity allowances to 70*. It goes on "It may be that subsequently the age limit could be further reduced to 65, but
that it would be ill-advised to extend the scope of the scheme too rapidly." As at January 1974, 31,458 individuals were in receipt of disability and infirmity allowances at a cost in that month of HK$3,136,875.
47. The recurrent cost would rise steeply if the qualifying age were to be reduced. It is estimated that the age structure of the over-60 population of Hong Kong is as follows (based on the 1971 Census): -
Aged 75 and over
: 17%
Aged 70-74
:
18%
Aged 65 69
W
:
Aged 60- 64
25% 40%
Moreover the whole cost of the infirmity allowances is borne from current revenue since there is no system of contributory social security. Is there a need for such a system? The pros and cons are set out in paragraph 6.8 of the White Paper and for convenience are repeated here.
/ "Social insurance
The current rate is HK$72.50 a month (about £6).
15
CONFIDENTIAL
i.