CONFIDENTIAL
XCC(91)107
(b) existing allowances and honoraria should be revised as usual based on increases in the cost of living since the 1990 review, adjusted to take account of the pay award to the Civil Service;
A copy of memorandum XCC(91)67 is annexed.
5
In pursuance of the above decision, a submission seeking to increase the level of monthly allowances for OMELCO Members from $32,700 to $36,200 and for District Board members from $9,850 to $10,900 was presented to the Finance Committee for consideration on 12 July 1991. However, during the Legislative Council in-house meeting on 5 July 1991 when the submission was deliberated, Members resolved to amend the proposal to reflect "the needs of Members brought about by changing circumstances". This involved setting the remuneration for Members of the Legislative Council at $36,000 per month which would be taxable, with effect from 1 October 1991. Additionally, a new accountable allowance of $30,000 per month for office rental expenses, hiring of personal assistants, secretarial service, entertainment and travelling expenses was proposed.
6
In line with the above consensus amongst Members of the Legislative Council, the Administration's proposal to increase the level of allowance for OMELCO Members from $32,700 per month to $36,200 per month was amended by the Finance Committee on 12 July 1991 to the effect that the monthly maximum allowance for OMELCO Members should be increased to $36,000, the whole amount of which would be taxable. This amendment changes substantially the nature of the system of allowances payable to OMELCO Members: the allowance under this new arrangement would be akin to a salary (or remuneration for Members in the terms of Members of the Legislative Council), instead of an omnibus allowance providing, as it has been since 1987, flexibly for payment for the holding of office (which is taxable) and reimbursement of Members' expenses (which is not taxable), depending on individual Members' circumstances.
7
At the meeting, Finance Committee approved a package of benefits and support for the Deputy President of the Legislative Council, comprising a monthly maximum allowance of $72,400, an accountable entertainment
Executive Council