CONFIDENTIAL

XCC(91)1

allowance of $60,000 per year for hosting functions on behalf of the Legislative Council and general support including office accommodation, an office car with chauffeur and a Senior Personal Secretary

Legislative Council Members' argument

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Itisunderstood that the basic rationale advanced at the Legislative Council in-house meeting on 5 July 1991 for changing the system of allowances from a lump sum to two specific components catering respectively for payment for holding of office and for other office-related expenses was similar to that which was advanced by the Administration and reflected in paragraph 8 to 16 of memorandum XCC(91)67 at Annex. As regards the maximum level of claimable and accountable allowance, some Legislative Council Members who were present at the in-house meeting on 5 July 1991 pointed out that $30,000 was insufficient to defray expenses on office rental and executive and secretarial support etc. However, the majority of Legislative Council Members present at that meeting considered that $30,000 was acceptable as a start since the amount could be reviewed regularly, having regard to factors such as the rate of increase in office rental and salaries for supporting staff and patterns of actual claims by Members.

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It has also been clarified that insofar as the salary (or remuneration for Members) is concerned, Members of the Legislative Council would be content with an updating mechanism which is linked to the Consumer Price Index as proposed in paragraphs 18 to 19 of memorandum XCC(91)67 at Annex.

The Administration's view

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Since the above proposal from Members of the Legislative Council is broadly in line with the scheme the Administration recommended to this Council in April this year, the Administration has no philosophical problem with it.

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However, Members of the Legislative Council have failed to address the related issues, such as the arrangements for payments in the case of multiple membership, a special allowance for the Senior Member of the Executive Council and the Senior Member of the Legislative Council respectively, an allowance for the Deputy President of the Legislative Council, and the question of the relativity between the payments to Legislative

Executive Council

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