77. The public assistance scheme is designed to provide help for individuals and families who cannot manage on their existing resources. Normally public assistance is needed for a limited time only, until the recipient becomes independent again. But in some cases e.g. the elderly, it is paid on a longer term basis.

78. For many years public assistance was provided in kind to people who had lived in Hong Kong for five years and whose income was below a certain prescribed level. A revised scheme was imple- mented in two stages in January 1971 and in April 1971 to provide cash assistance in the form of vouchers which could be cashed each month at specified post offices, Treasury sub-offices and New Terri- tories District Offices. Under the revised scheme all families or in- dividuals who have resided in Hong Kong for at least one year are eligible for assistance if they cannot manage on their existing resources; persons of working age who have no dependents and are available for work are not eligible. Any family whose monthly net income, after deducting rent payments up to an allowed maximum, education ex- penses and essential travelling expenses, is less than $50 per person for the first three family members, $40 each for the next three family members and $30 for each succeeding family member, would be eligible for a monthly cash allowance to raise their net incomes up to these levels. An adult living alone would be eligible for assistance if his net income were less than $70 a month after deducting rent and essential travelling allowances. In addition the Director of Social Welfare had discretionary powers to meet special needs e.g. for a special diet.

79. Expenditure on public assistance in 1971-72 was $11,987,749.92 as compared with $5,271,522.88 in 1970-71. The number of families who received public assistance during the year was 17,958. The actual number receiving assistance at the end of March 1972 was 13,509, compared with 8,607 in April 1971. An analysis of the type of cases which received public assistance during the year is at Appendix 18.

80. With the implementation of the revised public assistance scheme there was a substantial increase in new applications. 10,931 applications were received, of which 9,326 were found to be eligible. To cope with the influx of these new applications, four more public assistance field units were established at Tai Po, Pok Fu Lam, San Po Kong and Mong Kok, making a total of 13 field units.

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