(b)

is to

10

One of the main economic objectives of the Hong Kong Government promote economic development with a view to providing a high level of employment and a rising standard of living for the population.

In Hong Kong,

Kong, the Social Welfare Department is responsible for implementing government policies on social welfare and social security. In the provision of social welfare services, the department maintains a close working relationship with the subvented welfare agencies which receive financial assistance from the government.

Administered by the Social Welfare Department, the Public Assistance Scheme, which is means tested, is intended to bring the income of needy individuals and families up to a prescribed level. Any person whose income and resources are below the prescribed level is eligible for public assistance subject

subject to certain qualifying conditions, including one-year residence

residence in Hong Kong. The basic rates of the scheme are reviewed regularly to take account of inflation. The latest revision took place on 1 April 1990. The rates of additional supplements, special and discretionary payments, which are payable in addition to the basic rates, have also been increased correspondingly.

The Special Needs Allowance Scheme, which comprises the Old Age, Allowance and the Disability Allowance, provides a flat-rate monthly; allowance for the elderly persons aged 70 or over and the severelyi disabled persons.

A phased extension of the Old Age Allowance to persons aged 66 or over was introduced on 1 September 1988. The residence requirement for the Old Age Allowance is at least five years counting from the five years before reaching the minimum qualifying age to the date of application and that for the Disability Allowance is one year immediately before the date of

of application. Those severely disabled persons who require constant attendance from others but are not receiving such care in a government or subvented institution are entitled to a higher rate of allowance.

(c)&(d) Based on Household Expenditure Survey conducted during the period from October 1984 to September 1985, two Consumer Price Indexes were introduced to collect up-to date information on the average expenditure patterns of different types of households in Hong Kong. The Consumer Price Index (A) covers about 50 per cent of urban households in Hong Kong with an average monthly expenditure of between HK$2,000 and HK$6,499 during the period October 1984 to September 1985. The Consumer Price Index (B) covers the next 30 per cent of urban households with an average monthly expenditure of between HK$6,500 and HK$9,999 in the same period. Both indexes are widely used as a general measure of inflation and yardsticks in the adjustment of wages, salaries, cost-of-living allowances and other similar payments.

Indexes

reflect current

To ensure that the Consumer Prices conditions realistically, another Household Expenditure Survey is being carried out for the period October 1989 to September 1990. Based on the results of the survey, a new set of Consumer Price Indexes (A) and (B) will be compiled and introduced with effect from October 1990. These new indexes will completely replace the 1984/85 series as from April 1992.

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