TNAG-0608-FCO40-756-Planning-paper-on-progress-made-on-social-security-in-Hong-K-1977 — Page 105

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CONFIDENTIAL

Mr Murray

PS/Lord Goronwy-Roberts

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HONG KONG: SOCIAL WELFARE REVIEW

Problem

1. The Governor of Hong Kong wrote to me on 30 July and enclosed a copy of a draft memorandum containing proposals for the further development of Hong Kong's social welfare system. The memorandum is due to be considered by the Executive Council later this month and will be followed, if ExCo agree, by a Green Paper for public discussion and the Governor has asked for comments by 11 August.

Background

2.

The draft memorandum is understood to be the work of Mr Heppell,

an expert on social security and social welfare matters, who was seconded to Hong Kong in April from the British Department of Health and Social Security to assist in a review of the present public assistance scheme. It contains the following main proposals:

(a) the "streamlining and refining" of the public assistance scheme. (More precise details on this proposal are set out in paragraphs 13-19 of the draft.);

(b) the extension of various benefits to the elderly and to those incapable of work; and

(c) the introduction of a voluntary contributory sickness, injury and death benefit scheme. (The details are in paragraphs 33 et seq.).

Two planning assumptions underlie these proposals: that, given a probable preference in the community for expenditure on education and housing rather than social welfare, there are clear limits to the amount of government resources that can be devoted to social security; and that it is not realistic to plan on the basis of a compulsory system of contributory social insurance (para 9).

CONFIDENTIAL

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