DISREGARDED EARNINGS

5

WEDNESDAY, FEBRUARY 2, 1994

IN

THE MONTH

AS

I SHALL TRY TO DEBUNK ANOTHER MYTH. LET US NOT FORGET THAT DETERMINING THE ASSISTANCE PAYABLE TO INDIVIDUAL CSSA CLIENTS, EARNINGS OF THOSE IN EMPLOYMENT ARE DISREGARDED UP TO $775 PER

IN RECEIPT OF PER PERSON. TO TAKE THE EXAMPLE OF A WORKING ADULT CSSA, HIS MONTHLY INCOME COULD AMOUNT TO $2,260, MADE UP OF $1,035 THE STANDARD RATE AND $450 AS SPECIAL GRANTS PAYABLE UNDER

THIS INCOME IS SCHEME, PLUS $775 RETAINED AS DISREGARDED EARNINGS. ALREADY IN EXCESS OF 30% OF THE MEDIAN WAGE WHICH HONOURABLE IN THIS DEBATE APPEAR TO BE ADVOCATING.

FOR

IT

THE CSSA

MEMBERS

MEET INDIVIDUAL A SAFETY NET SCHEME WHICH IS DESIGNED TO

THE TO SAY NEEDS,

LEAST, TO INAPPROPRIATE AND ARBITRARY IS

WAGE. PEGGING STANDARDISE THE RATES BY PEGGING THEM TO THE MEDIAN

LEVEL WOULD MEAN CLIENTS WITH DIFFERENT NEEDS WOULD RECEIVE THE SAME OF ASSISTANCE. THOSE WITH MORE THAN THE AVERAGE NEEDS WOULD LOSE OUT. MOREOVER, AS WAGES MAY FLUCTUATE ACCORDING TO THE ECONOMIC CONDITIONS,

EVENT OF A CLIENT'S NEEDS MIGHT NOT BE FULLY SATISFIED IN THE ECONOMIC DOWNTURN AFFECTING THE LEVEL OF WAGES.

AN

IMPROVEMENTS TO THE SCHEME

SOCIAL SECURITY IS A PERENNIAL PRESSURE POINT IN EVERY COUNTRY. FOR HONG KONG IS NO EXCEPTION. THERE HAVE ALWAYS BEEN POPULAR CALLS

WITH ECONOMIC HIGHER LEVELS OF ASSISTANCE PARTICULARLY IN A SOCIETY

WHO ARE IN PROSPERITY. THIS IS RIGHT. FIRST, WHILE THE MAJORITY

PROSPEROUS ECONOMY, GAINFUL EMPLOYMENT CAN ENJOY THE BENEFITS OF A THERE ARE ALWAYS SOME PEOPLE WHO, DUE TO SOCIAL OR PERSONAL FACTORS, SECONDLY, AS ARE UNABLE TO SHARE THE INCREASE IN SOCIETY'S WEALTH.

OF WHAT THE

THE DEFINITION LIVING STANDARD OF A SOCIETY RISES, CONSTITUTES A BASIC AND AN ACCEPTABLE LIVING STANDARD WILL CHANGE,

INDEED,

SHOULD

SOCIETY.

ASSISTANCE IT IS RECOGNISED THAT THE LEVEL OF MAKE REFERENCE TO THE SOCIAL AND ECONOMIC CONDITIONS OF A OVER THE YEARS, OUR SAFETY NET HAS EVOLVED FROM ONE CATERING FOR BASIC ONLY BASIC SUBSISTENCE TO NOW, ONE WHICH IS CAPABLE OF MEETING NOT

PAYMENT RATES ARE NEEDS BUT

ADDITIONALLY, ALSO SPECIAL NEEDS.

INFLATION

SOCIAL AND ACCOUNT TAKE INTO

ADJUSTED

CHANGES.

AS

TO REQUIRED

INFLATION

EXAMPLE RATE HAS AS

1 WOULD LIKE TO HERE, I WOULD LIKE TO DEBUNK YET ANOTHER MYTH. LAY TO REST ONCE AND FOR ALL, THE NOTION THAT SOCIAL SECURITY BENEFITS

ONCE MORE, USING THE HAVE FAILED TO KEEP UP WITH INFLATION. OF A SINGLE PERSON, THE FACT OF THE MATTER IS THE STANDARD INCREASED BY 14 TIMES OVER THE LAST TWO DECADES WHEREAS INFLATION MEASURED BY THE CPI(A) INDEX HAS INCREASED BY A MERE SIX THE SAME PERIOD.

TIMES OVER

AMOUNTS

OUR TOTAL EXPENDITURE ON SOCIAL SECURITY PAYMENTS NOW TO ABOUT $6 BILLION ANNUALLY, REPRESENTING A GROWTH OF OVER 3.5 TIMES THIS RATE OF INCREASE IS OVER THE LEVEL OF EXPENDITURE 10 YEARS AGO. ABOUT 1.5 TIMES HIGHER THAN THAT OF INFLATION DURING THE SAME PERIOD.

/THE WELFARE

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