SECRET
006214
MDHIAN 7401
WASTAGE IS A PARTICULAR PROBLEM. THE IMPROVED PACKAGES FOR JUDGES AND LOCAL LAWYERS ARE EXAMPLES OF THESE, BUT THERE ARE MANY OTHERS OVER THE YEARS, INCLUDING THE POLICE.
9. BY WAY OF ILLUSTRATION, IN OCTOBER 1988, WE INTRODUCED A RESTRUCTURED SALARY SCALE FOR THE POLICE AT A COST OF HKD190 MILLION. THIS SUBSTANTIALLY INCREASED THE ENTRY SALARY FOR THE POLICE RANK AND FILE. ON 1 OCTOBER 1990, WE EXTENDED POLICE SCALES IN A WAY WHICH GAVE THE POLICE OFFICER RANKS (I.E. INSPECTORS AND ABOVE) A 3.3 7.9 PERCENT INCREASE OVER THEIR PREVIOUS SCALES AT A COST OF HKD68 MILLION PER ANNUM. POLICE PAY HAS INCREASED APPROXIMATELY 70 PERCENT OVER THE PAST FIVE YEARS, SOME 20 PERCENT MORE THAN THAT OF MOST OTHER CIVIL SERVANTS. A FURTHER REQUEST FOR IMPROVEMENT OF POLICE RANK-AND-FILE SALARIES IS NOW BEING CONSIDERED, AGAINST A BACKGROUND OF WIDESPREAD CONCERN ABOUT THE LEVEL OF VIOLENT CRIME.
10. WE HAVE AND WILL CONTINUE TO TAKE WHATEVER MEASURES ARE NECESSARY TO RETAIN AN EFFICIENT AND EFFECTIVE POLICE FORCE. BUT, AS SEEN FROM HERE, THIS HAS NOTHING TO DO WITH HMG'S OBLIGATION TOWARDS HMOCS MEMBERS OR WITH THE PRINCIPLE OF PROVIDING COMPENSATION FOR THE LOSS OF THE SECRETARY OF STATE'S PROTECTION IN 1997, THE REASONS FOR WHICH ARE HISTORICAL AND CONSTITUTIONAL. WHATEVER ACTION WE TAKE TO IMPROVE POLICE TERMS OF SERVICE WILL BE IN RESPONSE TO INTERNAL NEEDS. IT WILL NOT OBVIATE THE NEED FOR PROPER HMOCS ARRANGEMENTS. THE TWO ISSUES ARE SEPARATE. IT FOLLOWS THAT WE ARE NOT ATTRACTED BY THE IDEA OF OFFERING ALL POLICE OFFICERS ON CONTRACT TERMS THE OPPORTUNITY TO TRANSFER TO LONGER CONTRACTS WITH ENHANCED GRATUITIES, AT LEAST IN THE CONTEXT OF ARRANGEMENTS FOR HMOCS.
11. THE COMMENTS IN THIS TELEGRAM ARE NOT MEANT TO SOUND NEGATIVE. WE GREATLY APPRECIATE THE CONSIDERABLE EFFORTS THAT YOU ARE MAKING ON OUR BEHALF ON THIS ISSUE, AND RECOGNISE THE EXTENT OF THE OPPOSITION YOU FACE IN WHITEHALL. BUT WE WOULD FACE CONSIDERABLE DIFFICULTIES IF THE ALREADY SENSITIVE ISSUE OF HMOCS ARRANGEMENTS WAS ALLOWED TO SLIP OVER INTO WIDER AREAS SUCH AS THE REMUNERATION OF THE POLICE FORCE, WHICH NEED TO BE HANDLED SEPARATELY AND IN THEIR OWN CONTEXT.
12. FINALLY, WE DO NOT INTEND TO MAKE ANY DECISION FOR A FURTHER MONTH OR TWO ON WHETHER TO EXTEND DEADLINES FOR TRANSFER TO PENSIONABLE TERMS OR FOR OPTING TO THE NEW PENSION SCHEME (PARA 10 OF TUR). WE WILL KEEP YOU INFORMED ON HOW OUR THINKING