CODE 18.77
Mr Milton
HKGD
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HONG KONG : SOCIAL WELFARE REVIEW
HKK 013/2 3. LA 39372
Reference..
JAK
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Boak bilt
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1. You asked for my comments on the draft ExCo paper enclosed with the Governor's letter of 30 July.
2. My major concern is the extent to which provision is made for the unemployed, since I consider this to be the most pressing need in my particular field. It is also a need to which others have ascribed
importance: cf.
(i) Para. 26 of the HK Planning Paper which after referring
to the extension of the Public Assistance Scheme to cover able-bodied unemployed which has now been done refers
to the possibility "of introducing a contributory element for some benefits of an immediate nature, e.g. unemployment. The programme was to be completed by the end of 1980. (ii) Lord Goronwy-Roberts' later observation to the Governor
(para.13 of the record of the meeting of 21 July 1976) that "the Secretary of State would need to be assured that the Social Security programme in the Planning Paper would be implemented within the agreed timetable
In para.10 of that same record Mr Cortazzi referred to "an extended social security system, including unemployment benefit based on entitlement"
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(iii) More important, the "centrally administered voluntary
contributory sickness, injury and death benefit scheme" proposed in para. 33 et seq but not to become operational before April 1981 (para.38, page 26) does not appear to contemplate unemployment benefits - even though it directly follows the reference in para.32 to those who are hit by unemployment. It might be argued that the contributor
who is hard hit by unemployment could always withdraw his contributions to the scheme (para.36(a)(iii), page 21): but in this case he would lose his employer's contributions, which presumably remain in the fund (to whose credit or for what contingency?). He might not even receive his own contributions in full if these are subject to abatement on the grounds that "he would have already received the benefit of protection during his period of membership of the scheme". The scheme needs to be examined closely if all the interests of worker-contributors are to be safe-guarded. Trade unions in Hong Kong should be given a chance of studying it at an early stage. I see that para.35 at the foot of page 20 refers only to "employees", though para.37, page 25, mentions consultation with "those representing employers and employees.'
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