TNAG-0608-FCO40-756-Planning-paper-on-progress-made-on-social-security-in-Hong-K-1977 — Page 3

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Mr Murray

PS/Lord Goronwy-Robers

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Mr Stewart

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THE GREEN PAPER ON SOCIAL SECURITY IN HONG KO

1. During his meeting with the Governor of Hong Kong, Lord Goronwy-Roberts asked to be kept fully informed about social progress in Hong Kong and, in particular, about the three recent Green Papers: one on social security, one on education and one

on the elderly.

2.

The paper on social security (copy attached) was published on 14 November and contains proposals for extensions to the present social security system and for the creation of a new semi-voluntary, contributory scheme to provide sickness, injury and death benefits. It begins with a general defence of Hong Kong's attitude to social policies and, in particular, of means-testing to ensure that only the most needy benefit from

available resources. There follows a description of the present position on both social security and social welfare.

3. The increased benefits proposed in the paper can be

divided into two categories: extensions to existing provisions and the new Sickness, Injury and Death Benefit Scheme.

(a)

Extensions to Present Provisions

(i) Public Assistance

This, the central pillar of Hong Kong's social security system, is designed to supplement the income of those

who do not have sufficient to live on. It is based on a

means test of family income. There are three main changes proposed: an increase in the level of benefits (by about 12%, to compensate for inflation), the introduction of a supplement payable to those who have been receiving assistance for more than eighteen months and the establish- ment of an old age supplement of HK$100 per month for all those over 60 who receive assistance.