XN000022-1980-12-03 — Page 2

INDEPENDENT OFFICE TO ASSIST INDEBTED OFFICERS ******

AN INDEPENDENT CIVIL SERVICE FINANCE ADVISORY OFFICE IS TO BE SET UP TO ASSIST CIVIL SERVANTS WHO FIND THEMSELVES IN FINANCIAL DIFFICULTIES.

AT THE SAME TIME, A NEW CIVIL SERVICE REGULATION IS TO BE INTRODUCED WHICH WILL MAKE IT A DISCIPLINARY OFFENCE TO BORROW FROM UNAUTHORISED SOURCES, PARTICULARLY UNLICENSED MONEY LENDERS.

THIS WAS DISCLOSED TODAY BY THE SECRETARY FOR THE CIVIL SERVICE, THE HON MARTIN ROWLANDS, WHEN HE MOVED THE SECOND READING OF THE PUBLIC OFFICERS (ASSIGNMENT OF EMOLUMENTS) BILL IN THE LEGISLATIVE COUNCIL.

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THE PROPOSALS FOLLOW RECOMMENDATIONS BY A WORKING GROUP, CHAIRED BY MR LI FOOK-WO, WHICH REVIEWED EXISTING GOVERNMENT ARRANGEMENTS FOR ADVANCES OF SALARY AND LOANS TO CIVIL SERVANTS, AS WELL AS RULES GOVERNING THE BORROWING OF MONEY BY CIVIL SERVANTS. THE REVIEW IS ONE OF MANY RECENT DEVELOPMENTS TO IMPROVE INTERNAL MANAGEMENT WITHIN THE CIVIL SERVICE.

MR ROWLANDS SAID THAT FOR THE NEW CIVIL SERVICE REGULATION TO BE EFFECTIVE, IT WAS NECESSARY THAT CIVIL SERVANTS FIRST BE HELPED TO RID THEMSELVES OF DEBTS WHICH WOULD BE PROHIBITED ONCE THE REGULATION CAME INTO FORCE.

THE INDEPENDENT OFFICE, HE SAID, WOULD HAVE TWO FUNCTIONS ARRANGING FOR INDIVIDUAL CIVIL SERVANTS TO OBTAIN ADVICE ON THE IR FINANCIAL PROBLEMS, AND ARRANGING FOR THE REFINANCING OF DEBTS BY MEANS OF LOANS FROM ONE OF THE MANY BANKS OR DEPOSIT-TAKING COMPANIES PARTICIPATING IN THE SCHEME.

UNDER THE REFINANCING SCHEME, THE BANK OR DEPOSIT-TAK ING COMPANY WOULD SETTLE THE OFFICER'S DEBT ON HIS BEHALF. THE OFF ICER WOULD THEN REPAY THE BANK OR DEPOSIT-TAKING COMPANY BY MONTHLY INSTALMENTS OVER A PERIOD OF UP TO 10 YEARS.

+ I SHOULD LIKE TO MAKE IT CLEAR THAT CIVIL SERVANTS WHO AVAIL THEMSELVES OF THIS FACILITY WILL BE CHARGED INTEREST AT A COMMERCIAL RATE, SAID MR ROWLANDS,

+1 SHOULD ALSO LIKE TO MAKE IT CLEAR THAT THE OFFICE WILL ACCEPT APPLICATIONS FOR REFINANCING DURING A LIMITED PERIOD OF TIME, PERHAPS SIX MONTHS, AND THAT ANY OFF ICER WHO AT THE END OF THAT PERIOD HAS NOT RID HIMSELF OF DEBTS TO UNAUTHORISED SOURCES WILL BE LIABLE TO DISCIPLINARY PROCEEDINGS UNDER THE NEW CIVIL SERVICE REGULATION.+

MR ROWLANDS SAID THE WORKING GROUP HAD ALSO CONSIDERED OTHER STEPS TO KEEP CIVIL SERVANTS OUT OF SERIOUS DEBTS.

+PROPOSALS HAVE NOW BEEN DRAWN UP TO INCREASE THE SIZE OF DEPARTMENTAL RELIEF FUNDS SO THAT HEADS OF DEPARTMENT MAY MAKE LARGER LOANS TO STAFF IN NEED, AND TO INCREASE THE AMOUNTS OF SALARY WHICH OFFICERS MAY DRAW IN ADVANCE TO HELP MEET EXPENSES AR IS ING FROM DOMESTIC CALAMITY AND OTHER UNFORESEEN NEED.

+CONSIDERATION IS ALSO BEING GIVEN TO ENCOURAGING THE FORMATION OF CREDIT UNIONS AMONG CIVIL SERVANTS, HE SAID.

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