adequate.
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Social welfare arrangements are more
controversial.
They are financed entirely from revenue
and are quite different in character to those in the UK
National Insurance scheme or even the Singapore Provident
Fund, both of which are based on compulsory contributions.
In a recent despatch the Governor described the Government's
position to be: "To safeguard the position of lower
income groups by schemes of heavily subsidised housing
and heavily subsidised or free education and health
services, financed from general revenue; and in addition
to maintain the incomes of vulnerable groups such as
the handicapped, aged or unfortunate by cash payments,
supplemented where appropriate by special services, also
all financed from general revenue". We have no quarrel
with the approach to housing,education and health services,
and we accept that expenditure on social welfare
cash payments and special services has increased from
HK$ 59.7 m in '71/72 to HK$ 406.8m in 176/77. While
we would prefer a compulsory contributory scheme to the
system of cash payments (some of which are subject to
means test) financed from revenue, it is the Governor's
view that this would have little attraction for Hong Kong
people and that the present scheme can be adapted and
expanded to do more within the time available up to the
'80s, and with less friction in Hong Kong, than would be
possible if an attempt were made now to substitute an
20tributory scheme Page fent
Page 36tirely new compiphge
are developed in Annex C.