HKK 013/2
The Hon
Sir Denys Roberts KBE QC
Chief Secretary HONG KONG
CONFIDENTIAL
3 March 1977
(4)
REVIEW OF THE PUBLIC ASSISTANCE SCHEME
1.
We were glad to receive confirmation, in Alan Scott's letter PR HEP/TS/1 of 7 January, that arrangements are going ahead for Heppell of the DHSS to assist you in carrying out your review of the public assistance scheme and its proposed extension.
2. I mentioned in my letter of 25 November last that we would like to make some comments on the terms of reference (or "notes") for the review of the public assistance scheme enclosed with Hammond's letter of 13 November to Heppell. There are two general points which we should like to make. First, the terms of reference do not appear to contain any explicit mention of the need to cost improved social welfare and security measures. When Lord Goronwy-Roberts saw the Governor here last summer he particularly said that "he would like to see a fresh statement of the cost of the social security programme over five years and of the proposed budgetary policy, including taxation measures, whereby the programme would be funded". (Paragraph 11 of the record of Lord Goronwy-Roberts' meeting on 21 July.) Since arrangements have now been completed for the extension of public assistance to unemployed able-bodied males between 15 and 55 years of age and you are proposing a further extension of benefits, you will presumably agree that it is important for the review to include estimates of the cost of the expanded programme. Second, our view is that priority should be given during the period between now and 1980 to social security schemes rather than to social welfare benefits. We think that such an approach would be consistent with the proposal agreed between us last year that an agreed scheme of extended benefits should be formulated by 1 January 1978 and should be introduced in a series of steps by the end of 1980. The forthcoming review of your public assistance scheme would provide an opportunity to give substance to this proposal. It would seem to follow therefore that the review should examine the possibility and desirability of introducing a contributory element for some benefits of an
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