XN000022-1985-04-17 — Page 15

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WEDNESDAY, APRIL 17 1985,

FRINGE BENEFITS

FRINGE BENEFITS ALSO FEATURED IN SEVERAL SPEECHES. MISS MARIA TAM AND, I THINK, DR IP SUGGESTED IT WAS TIME TO RE-EXAMINE FRINGE BENEFITS GENERALLY, DIVERGENT VIEWS WERE EXPRESSED ON OVERSEAS EDUCATION ALLOWANCES, MR CHEUNG YAN-LUNG THOUGHT THE ALLOWANCES SHOULD BE EXTENDED AND MADE MORE FLEXIBLE TO COVER UNIVERSITY EDUCATION. ON THE OTHER HAND, DR IP QUESTIONED THE BASIC RATIONALE FOR SUCH ALLOWANCES.

I ACCEPT THAT IT IS TIMELY TO LOOK AFRESH AT SEVERAL FRINGE BENEFITS ACCORDED HITHERTO, PARTICULARLY OVERSEAS EDUCATION ALLOWANCES, INDEED, WELL AHEAD OF DR IP, AN IN-HOUSE REVIEW OF OVERSEAS EDUCATION ALLOWANCES AND SOME OTHER BENEFITS WAS RECENTLY PJT IN HAND WITH A VIEW TO SEEING WHETHER THERE IS SCOPE FOR WHAT ONE MIGHT DESCRIBE AS +MODERNISING+ THE FRINGE BENEFITS AVAILABLE. THE REVIEW, WHEN CONCLUDED, WILL BE REFERRED TO THE STANDING COMMISSION ON CIVIL SERVICE SALARIES AND CONDITIONS OF SERVICE FOR ADVICE. BUT I SHOULD LIKE TO REMIND MEMBERS THAT, IF THE CIVIL SERVICE IS TO REMAIN A VIABLE ORGANISATION, ITS CONDITIONS OF SERVICE MUST BE SUFFICIENTLY COMPETITIVE TO MAINTAIN OUR ABILITY

FRINGE TO ATTRACT AND RETAIN HIGH CALIBRE STAFF AT ALL LEVELS. BENEFITS ARE AN IMPORTANT ELEMENT IN THE OVERALL REMUNERATION PACKAGE, PARTICULARLY FROM THE POINT OF VIEW OF CONTINUITY OF SERVICE AND THE LONG TERM RETENTION OF STAFF AND EXPERIENCE. THE GOVERNMENT INTENDS TO CONTINUE TO BE A GOOD EMPLOYER AND, AS

N EMPLOYER, TO REMAIN COMPETITIVE WITH THE PRIVATE SECTOR.

DR IP ALSO RAISED THE QUESTION OF WHETHER OR NOT IT WOULD BE CHEAPER FOR GOVERNMENT, AND MORE FLEXIBLE - BY WHICH I THINK SHE MEANT MORE CONVENIENT FOR THOSE CONCERNED - IF AT LEAST PART OF THE FRINGE BENEFITS ELEMENT IN THE OVERALL REMUNERATION PACKAGE WAS PAID IN CASH INSTEAD. SOME WOULD ARGUE - BUT PERSONALLY WOULD NOT THAT THERE IS NO OBJECTION IN THEORY TO THIS IDEA. THERE IS NO DENYING THAT A CASH PAYMENT WOULD BE MORE FLEXIBLE FROM THE CIVIL SERVANT'S POINT OF VIEW, TOO FLEXIBLE PERHAPS, BUT IT IS QUESTIONABLE WHETHER IT WOULD BE CHEAPER FOR THE GOVERNMENT BECAUSE THE PRESENT TAKE-UP RATE OF FRINGE BENEFITS IS NOT BY ANY MEANS 100 PER CENT. IN ANY CASE, THE IDEA IS UNACCEPTABLE FOR IT AMOUNTS TO CHANGING THE BASIS OF ADMINISTERING FRINGE BENEFITS FROM THE PRESENT ACCOUNTABLE AND STRICTLY CONTROLLED SYSTEM TO AN UN ACCOUNTABLE ONE,

/PENC ONE