Q15
Will there be a cap on the maximum compensation
payable?
or
[Why is there a cap on the maximum compensation payable and
why is it set at the level it is set?]
A15
or
No cap
[There always has been a cap in previous schemes and is one in the HMG limited compensation scheme.]
(Given that payments will be spread over several years, only available if officers stay on, and the whole idea is to keep
people on, there seems to be no justification for a cap.)
Q16 Why are you using an artificial salary base (ie 1991 or
1992, why not use actual salaries in 1997?)
A16 Three main reasons i) in order to deal with the
Treasury we need to be able to give them a reasonable idea
now of what the cost would be. Unlikely to get any scheme
through if we cannot do this in sterling terms. ii) By no
means certain that Hong Kong salaries will rise faster than Hong Kong inflation. Therefore could be advantage to HMOCS officers in knowing what this money will be worth in
sterling terms. iii) Obviously we do not want to expose ourselves to the possiblity of huge increases in Hong Kong
salaries.
REGABY/5