TNAG-0570-FCO40-703-Planning-paper-on-Hong-Kong-1976 — Page 74

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He is commser... ground betwem Londfu and Hong Kong thing the present taxation system is regressive; bad bank aming the

tasks of the commence referred to in parcagiaper раскутери 22 hove in the

requirement to sleomment ways of marking the system faries.

an between groupin of the pays and intre pro- Stemwe

particularly

do

fiscal measures to the Hong Kong Government from London; but Ministers will need to be satisfied that

the broad lines of fiscal policy are defensible

here in London, ie that the burden of taxation increases should fall more heavily on those better able to bear it.

ris

common given

Scrion

.26. The benefits derived from changes in taxation should

continue to be directed in the Hong Kong Government's programmes towards the less fortunate. In the case of social welfare benefits in cash these in Hong Kong are financed entirely from revenue and are quite different in character to thos in the UK National Insurance Scheme or even the Singapore Provident Fund, both, of which are based on compulsory contributions. A fundamental objection, however, to a compulsory contributory, scheme, in Hong Kong within the time scale of this Paper results from the political uncertainty overhanging the Colony's future.

is thus

Toy. the present We thus share the Governor's view that within the time available it is better to build upon the present non- contributory scheme financed from general revenue than to attempt to introduce a new one with a contributory element from empbyer/employee or both. In spite of improvements in recent years, there are weaknesses or gaps in Hong Kong's social security system: there is no direct provision for unemployment benefit; pensions are small and are available only to persons of 75 and over; sickness benefits, an employer's liability, does not extend beyond 24 days; and there is no pension for widows. To some extent, these deficiencies are met from public assistance but it is common ground that there is considerable room for improvement The absence of a contributory element to any scheme of expanding Hong Kong's social security system, and therefore of the concept of entitlement points to a system based on the criterion of need. However, provided the payments are adequate to meet the normal hazards of an industria). urban society the criterior of need would, ¡in our view, henefits of am (minflids be defensible. Experience of the recent recession indi- nature, eg. unemployment) cates that there is an urgent requirement to extend unemployment benefit for industrial workers between

bomb Lights Extending unemploy- ment benefits for industrent werkus between 18455, the need for which was demonstrated

Cusing the recent

But in the Extension of the scheme low- Silciation Thinlə bi Seven both to the

possibility of peta

tuling in contributity

excement for Some

and of conferring

www.

Contritratory

Intitlements.

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