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WEDNESDAY, MAY 29, 1991
TURNING TO THE CIVIL SERVICE, THE CHIEF SECRETARY NOTED THAT GOVERNMENT WAS OFTEN ACCUSED OF LEADING INFLATION THROUGH ITS ANNUAL PAY AWARDS.
THE
"YESTERDAY WE ANNOUNCED AN INCREASE OF 10.43 PER CEnt. THIS IS BELOW THE FIGURE INDICATED IN THE MOST RECENT PAY TREND SURVEYS,
BUT, AGAINST THE BACKGROUND OF SLOWER ECONOMIC GROWTH AND HIGHER INFLATION, WE BELIEVE IT IS A FAIR AWARD WHICH WILL MAINTAIN REAL VALUE OF CIVIL SERVICE SALARIES, HE SAID.
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REFERRING TO THE CALLS BY SOME MEMBERS FOR A LOWER PAY INCREASE FOR THE BETTER PAID CIVIL SERVANTS, SIR DAVID SAID WHILE THE AWARD WAS ACROSS THE BOARD, HE THOUGH IT WORTH POINTING OUT THAT ITS REFERENCR POINT WHICH LED THE GOVERNMENT TO THE FIGURE OF 10.43 WAS THE MOVEMENT OF THE CPI A OVER THE PAST YEAR.
"MOVEMENT IN THE HANG SENG CONSUMER PRICE INDEX, WHICH MEASURR CHANGES IN THE COST OF LIVING FOR THOSE WITH LARGER HOUSEHOLD EXPENDITURE, HAS BEEN SUBSTANTIALLY GREATER AT 11.6 PER CENT.
"So THE PAY AWARD OFFERED THOSE ON HIGHER SALARIES DOES NOT FULLY REFLECT INCREASES IN THEIR COST OF LIVING. AND TO THIS EXTENT THE BETTER PAID ARE NOT BENEFITTING TO THE SAME EXTENT AS THE LOWER PAID CIVIL SERVANTS.
"THIS IS ONLY RIGHT BECAUSE THOSE WITH LARGER DISPOSABLE INCOMES HAVE MORE FLEXIBILITY IN ADJUSTING THEIR EXPENDITURE," HE SAID.
MARKER.
SIR DAVID SAID THE CIVIL SERVICE PAY AWARD ALSO SET DOWN A
"IT IS A CHALLENGE TO THE PRIVATE SECTOR TO KEEP THE LEVEL OF ITS AWARDS WITHIN INFLATION AND THEREFORE TO HELP BRING TO AN END THE PERCEPTION OF AN ENDLESS SPIRAL, HE ADDED.
THE
IN THIS CONTEXT, SIR DAVID NOTED THE CLAIMS BY SOME IN PRIVATE SECTOR THAT THEY HAD ALLOWED ONLY EIGHT PER CENT FOR THE INCREASE IN THE COST OF LIVING.
IT
INDIVIDUAL
"THIS IS AN INTERESTING CLAIM, BUT A LITTLE DISINGENUOUS. IS THE TOTAL PACKAGE WHICH IMPACTS ON INFLATION, NOT THE COMPONENTS.
ADDITIONAL
"THE EIGHT PER CENT EXCLUDES MERIT PAY AND OTHER PAYMENTS WHICH BRING THE OVERALL INCREASES TO OVER 12 PER CENT, AS REFLECTED IN THE RESULTS OF THE PAY TREND SURVEY AND A SIMILAR SURVEY CONDUCTED BY THE HONG KONG INSTITUTE OF PERSONNEL MANAGEMENT. AND EVEN THESE FIGURES OFTEN DO NOT INCLUDE ANNUAL BONUSES WHICH IN SOME CASES ARE VERY SUBSTANTIAL, HE SAID.
STRESSING THE NERD FOR A JOINT PUBLIC AND PRIVATE SECTOR STAND, SIR DAVID SAID HE KNEW THAT MANY MANAGERS IN THE PRIVATE SECTOR WERE DOING THEIR BEST TO LIMIT PAY INCREASES BUT THE PAY TREND SURVEYS SHOWED QUITE CLEARLY THAT THE PACKAGES AWARDED BY THE PRIVATE OVERALL STILL EXCEEDED THE RATE OF INFLATION.
SECTOR
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