TNAG-0608-FCO40-756-Planning-paper-on-progress-made-on-social-security-in-Hong-K-1977 — Page 165

Hr Hurst

CONFIDENTIAL

REIS

4 APR 1977

121311

HONG KONG: REVIEW OF THE PUBLIC ASSISTANCE SCHEME

1. I spoke with Mr Li Fook-kow, the Secretary for Social Services, and with kur Eric Ho, the Secretary designate, about the terms of reference for the Review of the Public Assistance Scheme. I was given a copy of the new terms of reference, which are attached to this minute. Mr P X Li maintained that these revised terms of reference made the criticisms originally expressed in my letter of 3 March.

2. In discussion I was told that the legislative programme was up to date and in accordance with their schedule except for the proposed legislation on silicosis compensation. In this case it now looks possible that the target date for the introduction of legislation might slip. The problem was that most of the insurance companies who had been approached had not yet responded. Mr Li felt that any delay would probably be less than three months.

3. In a general review of social welfare and security matters, I was told that the scheme for extending public assistance to able- bodied males between 16 and 55 would be introduced and publicized on 1 April and that no major probloms were expected, Some minor problems due to the rather musiled introduction of the scheme, e.g. the need to take on a staff to administer and monitor the scheme, were expanted but could be overcoma. The Branch were currently engaged in their annual review of the sccial programme (this is part of the first review of the Hong Kong Covernment's whole development programme). Although the Social Welfare Branch have been conducting annual reviews for some years, it is only this year that other Branches of the Government have adopted this process.

4. A scheme for regionalization of all wolfare matters was being introduced. Unti” now the problem was that all decision making, even at a comparatively low level, was centralized at headquarters. Devolution of quite considerable authority to ragional centres would now be introduced.

5. Wo discussed the consideration of non-means- tested social security benefits and on the whole their reception was reasonably sympathetic. However, it is clear that we must continue to keep up pressure over this. e also discurro, the problem of a contributory scheme. There was general objection, both from the policy makers at Branch Headquarters and from Mr Thomas Lee, the Director of Social Welfare, whom I saw separately. Their arguments were that although 1997 may have no significance in our (and their) eyes, it was a constant factor in the consciousness of the main mass of the Hong Kong population. Therefore it would be very difficult to persuade young workers to contribute to a scheme from which they might never benefit. A secondary consideration was that contributors to such a scheme will have less authority to put pressure on the Government into making money available for expanded schemes of social welfare.

4 April 1977

CONFIDENTIAL

(14)

2

pp JA B Stewart

Hong Kong Departmen

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