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The ExCo's Deliberations
On the PAC's concern that its scope of investigation is constrained by not being provided with the relevant Executive Council documents, we have already explained very clearly to this Council the Administration's position on this issue at the Motion Debate on 24 April this year. Suffice it for me to emphasise just this: it is essential to uphold the long standing principle that proceedings of the Executive Council should remain confidential to ensure that there is no inhibition of free exchange and presentation of views. However, the Administration will continue to provide to the PAC every full details of the relevant parts of Executive Council papers, as necessary, though not the papers themselves.
The Prevention Of Double Benefits Rules
The Committee has commented on the non-application of the double benefits rule to the cash allowance paid to Hospital Authority staff. We considered then, as we do now, that any attempt to renege on a clear undertaking which we had made to the staff would have had serious consequences on the successful formation of the Authority. That undertaking was that the prevention of double housing benefits rules would not apply in the case of the Flexible Spending Account which was subsequently replaced by a cash allowance. We must not forget the considerable pressure at the time to complete the package and set up the Authority as early as possible, and the then staff sensitivity over the Hospital Authority package.
We agree that it is opportune now to revisit this issue and we have drawn up a plan for the prevention of double housing benefits rules to be applied to the cash allowance of all Authority staff newly appointed after a future cut-off date. The same rules should also be applied to newly appointed clinical staff in the University Medical Schools. We are seeking the views of the Authority and the Universities and will bear their comments in mind in finalising the plan.
As regards serving staff, we have considered the legal and contractual situation and have concluded that the rules should not be extended to the cash allowance received by these staff.