TUESDAY, FEBRUARY 28, 1984

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MR CHAMBERS SAID ALSO THAT A MAN OVER 60 LIVING ON HIS OWN WOULD BE ENTITLED TO A BASIC RATE OF $510 A MONTH, PLUS A RENT ALLOWANCE OF $276, AN OLD AGE SUPPLEMENT OF $255 AND AN ANNUAL LONG-TERM SUPPLEMENT OF $645. ADDITIONAL PAYMENTS FOR SPECIAL DIETS AND OTHER PURPOSES WOULD BE MADE IF APPROPRIATE.

WHEN THE BASIC SCALE RATES WERE INTRODUCED IN 1971, THEY WERE FIXED AT A VERY MODEST SUBSISTENCE LEVEL. +BUT THERE HAVE BEEN QUITE A LARGE NUMBER OF IMPROVEMENTS SINCE THEN, HE SAID.

IN 1972 THE SCALES WERE REVISED TO TAKE ACCOUNT OF ADDITIONAL ITEMS OF HOUSEHOLD EXPENDITURE NOT PROVIDED IN THE ORIGINAL SCALE OF ASSISTANCE. PROVISION WAS ALSO ADDED FOR DISCRETIONARY PAYMENTS TO MEET SPECIAL NEEDS.

IN 1978, THE LONG-TERM SUPPLEMENTS WERE ADDED, AS WELL AS SUPPLEMENTS FOR THOSE OVER 60, AND PEOPLE SUFFERING FROM SERIOUS DISABILITIES.

+PERHAPS THE MOST SIGNIFICANT IMPROVEMENT IN THE PUBLIC ASSISTANCE SCHEME TOOK PLACE IN JULY 1981 WHEN THERE WAS A REAL INCREASE (THAT IS, OVER AND ABOVE THE INCREASE JUSTIFIED BY THE RISE IN THE COST OF LIVING) OF 25 PER CENT ON THE BASIC SCALE,+ MR CHAMBERS SAID.

+THIS REFLECTED A RISE IN THE STANDARD OF LIVING OF THE POPULATION AS A WHOLE AND ENSURED THAT THE POOREST MEMBERS OF OUR COMMUNITY WERE ABLE TO HAVE A SHARE IN HONG KONG'S INCREASING PROSPERITY.+

APART FROM THESE CHANGES IN THE REAL VALUE OF PUBLIC ASSISTANCE PAYMENTS SINCE 1971, THERE HAVE BEEN NINE REVISIONS OF THE BASIC RATES DURING THE PERIOD TO REFLECT INCREASES IN THE COST OF LIVING.

MR CHAMBERS SAID THAT PUBLIC ASSISTANCE RATES HAD INCREASED BY 363 PER CENT SINCE 1972, WHEREAS THE INCREASE IN THE CP1(A) WAS ONLY ABOUT 225 PER CENT.

THIS WAS PARTLY THE RESULT OF THE +REAL+ INCREASE IN 1981 AND PARTLY BECAUSE THE PUBLIC ASSISTANCE INDEX INCLUDES A LARGER ELEMENT FOR FOOD PRICES THAN THE CPI(A) AND FOOD PRICES HAVE RISEN FASTER THAN THOSE OF OTHER CONSUMER GOODS AND SERVICES IN RECENT YEARS.

+CERTAINLY. + HE SAID. +PUBLIC ASSISTANCE PAYMENTS ARE NO LONGER AT SUBSISTENCE LEVEL. +

MR CHAMBERS SAID THE ADEQUACY OF THESE PAYMENTS COULD BE GAUGED BY LOOKING AT THE AVERAGE INDUSTRIAL WAGE, NOW AT ABOUT $2 100 A MONTH.

A FOUR-PERSON FAMILY ON ASSISTANCE WOULD RECEIVE UP TO $2 378 A MONTH BASIC RATE AND RENT ALLOWANCE, PLUS ANY DISCRETIONARY PAYMENTS MADE, SO THAT THEY COULD BE SOMEWHAT BETTER OFF THAN A SIMILAR FAMILY WITH ONE BREADWINNER DRAWING THE AVERAGE INDUSTRIAL WAGE.

/MR CHAMBERS ..

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