XN000022-1995-03-08 — Page 22

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That is not to say we are doing nothing for the CSSA to the contrary, we are doing and have done a great deal. What we have done is to increase CSSA payments to the single elderly by 26% over and above inflation in the 3 years prior to April this year. What we are doing and will continue to do is to conduct a major review of the entire CSSA system. Dr Lam will wish to note that this will include a review of the means test criteria which is an issue specifically raised in his amendment, to the Motion. We are working on the Review as fast as we can, but important data from the Household Expenditure Survey will start to become available only from September this year and it would not be realistic to expect firm proposals to start to emerge much before the end of this year. This cannot be a piecemeal exercise; and figures must not be snatched out of the air.

A comprehensive Review is the only sensible way to proceed. And as I said earlier this afternoon - this is not a delaying tactic, far from it. We are sincere in wanting to implement the Review's recommendations as swiftly as possible. This creates some difficulties since the Review will reach its conclusions very late in the preparations for the 1996/97 budget. Nevertheless, the Financial Secretary has agreed that some funds will be reserved in advance of the Review outcome so that we can start to implement its recommendations in 1996/97.

It is not clear to me from the way that CSSA figures are currently confidently espoused by their proponents that there is any deep understanding of how the CSSA system and our other support for elderly persons actually work. Let me explain.

With effect from next month, when all CSSA standard rates will be increased by 8.5%, we expect the average monthly payment to a single elderly person to be about $2,700. That is $200 higher than the $2,500 proposed in the Motion and in the amendment to it. How can this be? This is because 97% of elderly CSSA clients receive not only the "standard rate" but are also eligible for a wide range of special grants and an annual supplement if they have been on CSSA for 12 months or more. For the elderly, the most relevant special grants relate to rent, telephone charges, travelling expenses, medical appliances and special diet. With effect from April, a single elderly might typically receive an annual supplement of $1,340 and, monthly, a standard rate grant of $1,810, special grants for rent (of up to $1,118), telephone charges, travelling expenses etc, say another $100. All these add up to an average monthly payment of $2,700.

When calculating the full level of financial support given to an elderly person in need, we must add to this the cost to the taxpayer of providing all medical services to CSSA recipients free of charge and for the provision of various welfare services, at a cost of over $1 billion next year. ranging from counselling to day care and social activities all at no charge or at the lowest of nominal charges only. Depending on need, they can also benefit from special compassionate housing in public housing estates.

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