2.
represents a development of present policy, rather than an innovation although again it will be well received and marks a further stage in establishing Hong Kong's own distinctive approach to social security. The third area, however, the proposed sickness, injury and death benefit scheme, does represent an entirely new development. Its introdution will of course depend on the extent of public support it receives.
5.
As you know, Hong Kong has been very cautious about introducing contributory social insurance, in addition to the pretty wide provisions against real need funded from revenue. And, indeed, we are still setting our face against a compulsory scheme on the normal Western European model. But the sickness, injury and death benefit scheme, assuming it receives general support, will represent a very considerable innovation in Hong Kong, the significance of which you will of course appreciate. It makes no attempt to emulate social insurance schemes as they have developed in Western countries. But we must start off our scheme in a way that is manageable administratively and acceptable socially. That is why the scheme will be voluntary for employees; and why it provides for with- drawal of contributions at will by an employee. This latter aspect is clearly important in the circumstances of Hong Kong. If we were to go for a fully compulsory scheme, or for a more expensive scheme with higher contributions, we should be unable to carry the people of Hong Kong with us. I think that Heppell is to be congratulated on a most ingenious scheme to meet Hong Kong's very unusual circumstances.
6.
When the parallel new schemes for services to the handicapped, elderly and youth are added, the scale of social security development proposed is pretty ambitious. When it is all put together in a White Paper we will have a clearly defined and comprehensive scheme of payments and services across the whole field. The cost is very considerable, but subject to a final look at phazing is considered possible by officials. What Unofficials will say remains to be seen. Given other competing social priorities, there is certainly no room for going further at the moment.
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