01 FEB '93 16:29 B4 LINO 051 255 1160

P.7/10

Civil service under-representation

3. Another problem Hong Kong wish to remedy relates to the sub- quota for "managers and administrator}" in the civil service. This sub-quota was created to protect such civil servants from undue competition with their counterparts in the private sector, especially business proprietors. The Scheme takes income as a better measure of success and value to Hong Kong than length of experience and it was envisaged that civil servants would not be able to compete. They were therefore kept apart and given their own sub-quota. In practice the distinction has turned out to be unnecessary. The income level of those who have applied from the private sector has been generally quite low and it is thought that civil servants would have been more than able to hold their

own. The distinction has also meant in practice that because of under-subscription in the private sector all qualified applicants in that occupational sub group have been successful whereas the

rate for qualified civil servants has been only 24%. Hong Kong now wish therefore to make it a fairer competition by abolishing the sub-quota and having public and private managers and administrators compete on the same footing.

Earnings scale

4. The problem has also emerged with the earnings scale used under the Scheme to determine the number of points gained for experience by private sector managers and administrators. It does not differentiate applicants sufficiently and has resulted

in too much bunching around particular levels. For the second

tranche Hong Kong would like to take into account the income

levels encountered in the first tranche. This would involve a

slight re-arrangement of the scale, the addition of two more steps and more even spacing between steps.

Accountancy professional qualifications

5.

A further minor adjustment is required in respect of the

IB.2/JM

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