- The original proposal was framed to provide a strong incentive to officers to serve on for several years after 1997. But it is now clear that unless we improve the proposal many will leave well before 1997, jeopardising our ability to administer and police the territory effectively: ie we need to provide an incentive to stay on at least until 1997, rather than for any period thereafter.
Option B: (HMOCS proposal)
They know that
- This is a maximalist HMOCs counter-proposal. payments have been phased in previous cases and they have no special grounds for pressing for a single lump-sum payment in 1997. Although they have proposed that there should be no "cap", ie the factors should be applied to the salary of each officer in the same way, with no limit to the amount payable to any one officer, they would probably accept the cap in Hong Kong' Limited Compensation Scheme (about ?£200,000).
Option C:
(FCO/ODA proposal)
- This is a proposal for a scheme on traditional lines, effectively recognising that Hong Kong's circumstances are not so different from those in previous Dependent Territories to justify our giving Hong Kong HMOCS officers anything less than they have received elsewhere.
- It will provide a strong incentive to officers to stay on until 1997; those leaving earlier will not receive compensation. Those who serve on after 1997 will receive interest on the compensation instalments: this was common practice elsewhere and provides a modest incentive to continue service.
- The cap represents an updating of the caps in earlier schemes (typically £12,000 in the early 1960's). It is necessary to apply such a cap in order to keep costs down, but it will be very unpopular with the HMOCS officers, as a high proportion of them will be capped (because of lower salaries elsewhere, very few officers were affected by the previous caps) and as the Hong Kong Limited Compensation Scheme has a higher cap. But £120,000 is entirely defensible, both in terms of past practice and, since this will be a UK-funded scheme, given the differentials between Hong Kong and UK public service salaries. The cap aslo has a helpful targeting effect: it means that the scheme will offer more, relative to salary, to middle-ranking police officers than to top-level administators.
options.comm. 1. HMOCS
MVS
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