Mr Stewart
offference..!..
HKK +007
ROMNISTRY NO.
29 SEF 1988
PLER OFFY
INDEX
PA
Acto..
"Ry Enter
Mr. Thumpson - to see
.O'
HKGD
K 243
No
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*
28/4
A
catradach
(86)
No
B
ARTACHED.
C
ATTACHED
B
ATTACHED
D
ATTACIA
E
ATTACHE)
HONG KONG : THE GOVERNOR'S DRAFT BUDGET SPEECH
1.
My comments fall into three main groups relating to labour legislation, social policy and miscellaneous omissions.
Labour Legislation
2. Not least for UK consumption, there would be merit in mentioning the progress made in 1976 and 1977 on the application of International Labour Conventions. The reference in the speech to the need for the Labour Department to undergo a period of consolidation is not intended to preclude, I hope, continuing progress in 1978 on new legislation which will enable further improved declarations to be made.
(The tentative Hong Kong programme foresees improvements in respect of a group of Maritime Conventions, Accidents to Dockers and Contracts of Employment. I also wonder whether any improvements are possible in respect of Minimum Age Conventions in view of the recent decision by the Hong Kong Government to introduce free and compulsory junior secondary education).
Social Policy
-
see
3. At page 32 the Governor refers to payments which'"could broadly be described as social security payments" and then goes on to describe them as comprising proposals which, if implemented, would give Hong Kong "a social security system which is reasonably complete". This does not seem to accord with FCO thinking Lord Goronwy-Roberts' Tel No 623 of 10 August 1977, or with Mr Murray's and Mr Cortazzi's minutes of 2 and 5 September respectively on Mr Milton's submission of 2 September. In Mr Cort- azzi's words "we should concentrate on getting the Governor to push on towards the goal of an extended social security programme by the end of 1980: this means that the Governor would need to be ready to discuss with Lord Goronwy-Roberts the points made in FCO Tel No 623". In essence, as I see it, this means moving towards a non- means tested insurance type of social security scheme which will cover unemployment and retirement benefits. The impact on the UK reader of page 32 would be that in the means tested non-contributory public assistance scheme Hong Kong has found a permanent basis for its social security policies. We should not accept this. The UK reader would also look askance, I think, at the reference on the final page to Hong Kong's possession of "such complete non-contribu- tory social security coverage".
4.
I have already expressed reservations about the new idea of a contributory sickness and death insurance scheme but nevertheless it does represent a move towards the type of non-means tested social security scheme which I would like to see developed.
It is open to criticism on the grounds that it does not provide for unemployment benefit and its provisions for retirement are meagre. contributory rate of 2 + 2% benefits cannot be other than meagre.
On a
CODE 18 - 77
/Nevertheless