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Hong Kong Government service are entitled to accommodation in relatively

luxurious government flats, generally after a period of no more than 3

months in the colony. It should be noted, of course, that if such

accommodation were--not provided, the attractions of expatriate service

would no doubt be considerably diminished, given the difficult conditions

operating in the Hong Kong housing market: but this fact does not

-altogether counteract the resentment of local officers.

Local officers are entitled to assistance with housing only at Point

36 of the MPS. For their part, Model Scale 1 employees are entitled to

public housing for low income groups as available. There is thus a

shortfall of provision for locally recruited officers employed at below

point 36 of the MPS. Government has recently attempted to remedy this

by supporting a co-operative program for employees ineligible for either

the housing allowance or the low income group public housing entitlement.

Certainly, in comparison with public services (or for that matter,

industrial enterprises) worldwide, it perhaps cannot be claimed that the

range of differentials in the Hong Kong Government's pay structure, is

exceptional (11). However, the rather wide disparity in additional pay-

ments in kind, even of an "essential" rather than "luxurious" type,

pertaining in the Colony's service appear to be an extra source of.

perceived-inequity which could well militate against employee goodwill,

and accelerate demands for localization among Chinese officers.

Central Staff Relations Machinery

Mention has-been-made of the staff consultative machinery prior to the

discussion of pay policy and pay structure.. What follows is a more.

(11)

However, by international comparison, actual differentials in net income are relatively wide because of the lowrates of income tax and their limited progression in Hong Kong.

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