XN000022-1994-12-14 — Page 27

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In addition to the standard rate, we now pay out broadly 24 types of special grants covering, in the case of elderly clients their expenses on rent; their expenses on travelling and special aids for people with disabilities; other expenses including special surgical appliances, medical expenses, special diets, and telephone charges etc.

For clients who have received CSSA for not less than 12 months, they will receive an annual long term supplement to help them replace household goods and durable goods. For those CSSA clients who are working, their earnings from employment are disregarded up to $835 a month. From April next year, this amount will be raised to $1,115 a month.

Over the years, the CSSA Scheme has been improved to ensure that payments are better tailored to meet the needs of our clients. The rates are adjusted each year in accordance with increases in the cost of living. Real increases have also been made to enable CSSA cirents to share in liong Kong's growing wealth. Over the last two decades, the CSSA rates have increased by about 15 times while the rate of inflation measured by CPI(A) has gone up by only six times.

The average CSSA payment now ranges from $2,440 for a single person, $3,840 for a 2-person household, $5,280 for a 3-person household and $6,880 for a 4- 98% of the average person household. These payments represent 35%

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manufacturing worker's wage or 30% - 83% of the median wage.

The CSSA payment for an elderly client now amounts to an average of $2,400 a month. As our Scheme is tailored to the individual client's circumstances based on his needs, the more needs there are, the more our clients will get. So, for example, this average payment is $2,690 a month for those who are disabled and $4,220 a month for those who are in need of care and attendance.

Adequacy of CSSA

The adequacy of CSSA benefits is a lively issue and so it should be as we are a community that cares for those who are vulnerable. Dr MacPherson's academic research on the adequacy of CSSA rates makes a useful contribution to the on-going debate. Dr MacPherson, however, has used a "budget standard approach" in determining a perceived "minimum acceptable standard of living" based on the concept of "relative poverty". The approach represents a radical departure from the philosophy and established policy of the CSSA Scheme. The recommendations of the research also have very serious financial and economic implications. Whilst we respect Dr MacPherson's work, we cannot therefore use the research or accept its recommendations as a basis for changing our policy on social security.