six

taxation policy. People were bound to sec

the need to keep

Hong Kong working but there remained a marginal impression which he shared that taxation policy was not anywhere near what it ought to be in the way of identifying a social objective.

Policy seemed to be the other way round, that is to go as far as

"they" will wear and then provide money for that. "They", meaning here the rich. The poor are taxed in that they have to buy out

free here. of their earnings services which are

They have

provide social deficiencies and social needs, for instance, there is a National Health Service in Britain and the absence

to

of this in Hong Kong amounted to an inbuilt burden on the wage

level.

It was 20p.

Consultation in

MM asked the NHS prescription fee. Hong Kong at the moment is 12p and this includes free medicine. Medical services are cheaper in Hong Kong than they are in Britain. As to quality, some fall short and some are as good

as anywhere else in the world. Fees are less than those in Britain. Social Security payments are a direct transfer.

GR enquired about unemployment. MM said that if a man became unemployed and his income dropped below a certain level, then he was eligible for public assistance which was non-contributory. GR said Britain had had public assistance in the 30ies. MM said

that £2 in the 30ies and weekly queues for a means test were one

thing.

Public assistance at £70

£70 a month plus rent plus special

diet plus school books plus transport and a book of tickets of entitlements for three months, were a very different thing. appreciated that the phrase "means test" was but the system in Hong Kong was very different. successive visitors came back with the same story. MM said that the system in Hong Kong was different and better suited to local circumstances. GR The fundamental point was that higher taxation

would produce better services. This view was held not only by those on the far left. He asked if a report was coming from Heppel MM said that Hepp el went out to draft the green paper but he would be reporting verbally. He had just arrived in England. they were to review payments, there was means-tested public assistance, non means-tested old age and infirmity allowances. There were reports on the handicapped and the elderly.

an

emotional one

GR said that

He

MM said that

Three papers

17

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