Speech by the Hon. J.N. Henderson, OBE, JP Secretary for Education & Manpower
in the Legislative Council on 20th November 1985
on Resolution under
Section 48A of the Employees' Compensation Ordinance
Sir,
I move the motion standing in my name on the Order Paper.
The levels of compensation specified under various
sections of the Employees' Compensation Ordinance are, in accordance
with the recommendations of a 1978 Working Party which reviewed the
then Workmen's Compensation Ordinance, revised every two years.
Since the present levels have been in force since July 1983, a
further revision is now due. To give insurers sufficient time to
make adjustments to their rates of premium, it is proposed to bring
the revised levels of compensation into force on 1 January 1986.
It is proposed to raise the present levels of compensation
by roughly 23.5%. The basis for this proposal is the 15.6% increase
in overall wage rates, according to the Census and Statistics
department, between March 1983, the date against which the present
levels of compensation were set, and March 1985. The present levels
of compensation were set on the basis of calculations made several
months before their introduction which underestimated the increase
in wage rates in the meantime. Allowing therefore for an adjustment
to correct this under-estimation and assuming a further 5% increase
in overall wage rates between March 1985 and January 1986, compensation
levels should be set, with effect from January 1986, 23.5% higher than
at present.