XN000022-1980-07-10 — Page 3

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THURSDAY, JULY 10, 1980

+ IT HELPS THOSE WITHOUT ANY INCOME OR UNABLE TO EARN ENOUGH BY GIVING MONTHLY CASH PAYMENTS TO MAINTAIN THEIR INCOME AT A SUBSISTENCE LEVEL WHEREBY THEY CAN MEET THEIR BASIC ESSENTIAL NEEDS, SUCH AS FOOD AND CLOTHING, WITHOUT UNDUE HARDSHIP. HE SAID.

PUBLIC ASSISTANCE SCALE RATES, HE SAID, ARE REVIEWED AND ADJUSTED FROM TIME TO TIME TO MAINTAIN THEIR PURCHASING POWER AND IN SEPTEMBER THIS YEAR THEY WILL BE INCREASED, FOR THE SIXTH TIME, BY ABOUT 22 PER CENT.

HE EXPLAINED THAT THE SCALE RATES WERE BASED ON A PUBLIC ASSISTANCE INDEX OF PRICES WHICH MEASURED, BY WAY OF A SPECIALLY DESIGNED METHOD, CHANGES IN THE COST OF LIVING FOR FAMILIES RECEIVING PUBLIC ASSISTANCE.

THE METHOD OF MEASUREMENT TAKES ACCOUNT OF ACTUAL PRICE CHANGES IN THE INDEX IN THE PREVIOUS SIX MONTHS AND THE PROJECTED PRICE CHANGES FOR THE FOLLOWING SIX MONTHS, THEREBY ELIMINATING THE EFFECT OF SHORT-TERM AND SEASONAL PRICE FLUCTUATION, HE SAID.

IN OTHER WORDS, HE SAID, ANY INCREASE IN THE PUBLIC ASSISTANCE SCALE RATES ALREADY INCLUDES AN ADDITIONAL ELEMENT TO ANTICIPATE INCREASES IN THE RELATIVELY IMMEDIATE FUTURE AND BEFORE THE NEXT REVISION.

AS TO THE SPECIAL NEEDS ALLOWANCES SCHEME WHICH COMPRISES THE OLD AGE ALLOWANCE AND THE DISABILITY ALLOWANCE, MR LEE SAID IT WAS QUITE DIFFERENT FROM PUBLIC ASSISTANCE IN THAT IT WAS INTENDED TO HELP THE RECIPIENT TO MEET ANY EXTRA FINANCIAL NEEDS ARISING OUT OF HIS OLD AGE OR DISABILITY.

+THIS INCLUDES THE PURCHASE OF SERVICES IN WHATEVER - FORM, SUCH AS SPECIAL HEALTH CARE OR ATTENTION NEEDS, + HẸ SAID.

TO THE EXTENT THAT AN ELDERLY PERSON, FOR EXAMPLE, HAS TO ENTER AN OLD PEOPLE'S HOME, PUBLIC ASSISTANCE PAYS FOR HIS BASIC LIVING IN THE INSTITUTION, WHILE HIS SPECIAL NEEDS ALLOWANCE CAN BE USED TO CONTRIBUTE TOWARDS HIS ADDITIONAL NEEDS JUST AS IN ORDINARY CIRCUMSTANCES IF HE WAS UNDER THE CARE OF HIS FAMILY IN THE FAMILY HOME.

HOWEVER, MR LEE EMPHASISED THAT IT WAS NOT THE GOVERNMENT'S INTENTION, NOR THE PRACTICE, THAT ANY INCREASED ALLOWANCES SHOULD BE TAKEN AWAY ENTIRELY BY FEES CHARGED

IN INSTITUTIONS.

+FEES CHARGED HAVE ALWAYS BEEN AT SUCH LEVELS THAT AFTER ALL HIS ESSENTIAL NEEDS HAVE BEEN MET BY PAYING FEES, THERE SHOULD ALWAYS BE MONEY LEFT OUT OF HIS SOCIAL SECURITY PAYMENTS, + HE SAID.

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