TNAG-0608-FCO40-756-Planning-paper-on-progress-made-on-social-security-in-Hong-K-1977 — Page 19

0003230

G.F. 323

CONFIDENTIAL

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9

administratively as well as tiresome to the client. This is the major objection to any system of subvention by reference to the individual. The only way out is a flat rate payment to all which, as noted earlier, is expensive and (unless made by reference to a particular area of need like severe disability) difficult to justify. It is better, therefore, to think in terms of relating the fee to the cost of the service: and provide help to the individual through the existing social security system.

27.

If the level of fees is to be determined by reference to the cost of the service, unless exceptionally it is decided to charge either the full cost or a token amount, it will be very desirable to find a system of establishing a level of charges which can be applied on a consistent basis to all those services for which it is decided to charge a fee. A possible approach might be to relate the amount of the fee to the basic cost of providing a service, excluding the element of care. In practical terms, this would mean taking into account the cost of food and perhaps accommodation, but exclude most or all staff costs. In the case of institutional care for old people, for example, it would mean charging the same for old people whether in an ordinary old people's home or in a care and attention home, the cost of "care and attention" being met from other resources, primarily Government finance.

November 1977.