Reference
CONFIDENTIAL
Mir Thompson
See over.
Mr Quartfill thank you.
Fe Helaren
8221/7
HKK 234/1 RECEIVED IN REESTRY 4o. 51 1 8 JUL 1978
DESK OFF INDEX
PA
RSO&TRY Action Taten
но
58
FLAG A
30
FLAG B
27
FLAG C
(W29)
FLAG D
(46
FLAG E
HKK
026/1 folio
FLAG F
HONG KONG SOCIAL SECURITY BENEFITS SCHEME
1. Mr Quantrill asked for the background to the proposal that the Hong Kong Government should contribute to the Social Security Scheme.
2. The first indication of support for Government contributions is contained in Mr Hurst's report of his trip to Hong Kong in February. Mr Hurst saw that his Trades Union contacts there generally favoured a scheme with a wide and generous range of benefits, and they thought that the Government should contribute as well as employers and employees. They thought that this would bring better benefits for their members.
3. John Stewart wrote to the Government Actuary's Department (GAD) on 23 March asking for advice on the proposal of direct Government contributions of possibly one third of the total revenue for the scheme. GAD replied, with details of how EEC governments participated in comparable schemes, but were unable to advise further at that time.
4.
Mr Murray's manuscript minute on Mr Stewart's submission of 10 April indicated that both he and Fir Cortazzi were very much in favour of a non-means-tested unemployment scheme funded partly by the Government. The basic reasoning centres on the enhanced stability which this scheme would bring to the Colony.
5. In a further letter from GAD to the Secretary for Social Services in Hong Kong, it is pointed out that it is "unusual to find a social insurance scheme to which the Government does not make some contribution, if only to meet expenses". However, they have not recommended how big any contributions should be in this case.
6. The Governor's meeting with Lord Goronwy-Roberts mentioned Government contributions to the scheme. Sir Murray told the meeting that some people in Hong Kong were against a westernised welfare state system, but agreed that there were no financial constraints to a contributory scheme funded partly by the Government. Lord Goronwy-Roberts later pointed out that the Secretary of State was likely to link the lack of employment benefit to nong Kong's fiscal system; he added that the funding of public benefits was a matter of technique and not ideology.
CODE 18. 77
7 July 1978
CONFIDENTIAL
ii J Upton
Hong Kong & General Dept