7

File No.

CONFIDENTIAL

3

Page

Functional

resolve it.

Constituencies

On the

and would do

of Bill

something to Rights, she asked the Governor to instruct the Attorney General to obtain an instruction from a higher court to conduct a review to the Functional Constituencies

determine

whether

contradicted the Bill of Rights. Citizens could not afford to take legal action against the Government. would take a look at the see how they linked in

The Governor

Functional

said that he

and Constituencies

with other issues, for example, the LegCo elections in 1995. He undertook to read the material and noted that other groups had also expressed reservations as the Functional Constituencies were elected.

of

10.

years, 40%

the their income. receiving public

25% dropped by

100,000

value

Dr Law said that over the last two or three 700,000 manufacturing workers who represented

had labour force

seen a real decline in were Kong people in Hong

the assistance,

of which had because of inflation. This meant that 40-50% of Hong Kong people had had to cope with a drop in their income. The present Public Assistance Scheme He urged gave no

to people in need. the Governor to review the Public Assistance Scheme and The increase to

of level

real protection

the

monthly payments.

Governor asked whether this proposal had been passed to the Financial

Fung confirmed that it

Mr

Secretary.

had.

11.

had

that

the implementing important

could be Governor

and social

when taken

Dr Law said that at the same time as this

value in

occurred,

of income decline residential flats

He hoped "more careful" in economic policies. This was

the against

background of 8.5%

the

had increased enormously.

due

inflation this year, likely increases over the next few years

to the airport, and real negative interest rates of about 5-6%. He suggested that a review should The be conducted of the territory's housing policy.

the between

Housing present Authority and the Government were not satisfactory. Neither was the supervision by the Government of the Housing

The Government should

financial

Authority's

arrangements

activities.

shoulder the responsibility for housing by :

(a)

(b)

setting up a policy branch;

reorganising the Housing Authority to make it more representative;

CONFIDENTIAL

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