CONFIDENTIAL
3
compulsory central provident fund would generate about HK$500m a year, based on contributions of 5% from employers. It has hitherto been argued in Hong Kong that Chinese workers would not wish to contribute to this type of scheme, but as there is little immediate prospect of an improvement in social security benefits for the people of Hong Kong, it might now be a good time for serious consideration to be given to planning the introduction of a contributory social security scheme.
3. Lord Goronwy-Roberts may also wish to ask the Governor about the present unemployment situation and for details of any contingency plans for expanding the public assistance scheme should the present unemployment situation worsen. At present, able-bodied adults are
excluded from the Public Assistance Scheme.
SOCIAL AFFAIRS
4. The effects of the world-wide trade recession on Hong Kong's economy are making it difficult for the Government to maintain the momentum of the "overnor's social programme launched at the end of 1972. In his annual review for 1974, the Governor said that while
there may well be some expansion of education and social welfare services, the 10 year housing programme has now been rephased and the crash programme for expanding secondary education will have to be put back for a least a year.
5.
Notwithstanding their current economic difficulties, the Government has given the highese priority in this year's budget to spending on social services. A record sum of HK$3,057 million, representing 41.8% of total expenditure, will be channelled into social services (these services comprise education, medical and health services, housing, social welfare and labour). This is an increase of 12.1% over the revised estimate for the previous year.
The total allocated to the social services is broken down as follows:
CONFIDENTIAL
/(1974-75
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