TNAG-0695-FCO40-845-Policy-on-salaries-for-civil-service-in-Hong-Kong-1977 — Page 254

C.S. 166

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by the moving annual average of the Consumer Price Index (A). Under the agreed procedure, proposals for an increase in pensions will be submitted to the Legislative Council in July 1977.

Subvented Organisations

23

Organisations subvented on a deficiency grant basis (aided schools and certain hospitals) generally pay their staff on salary scales identical to those for comparable civil servants, and such organisations normally award the same salary increases as those approved for the Civil Service. Supplementary subventions are approved for this purpose to the extent that additional financial assistance is required. The same arrangement applies to the Universities and the Polytechnic in so far as academic staff are concerned.

24

Organisations subvented on a discretionary grant basis (certain hospitals and all social welfare agencies) retain a degree of independence not enjoyed by deficiency grant organisations. The subvention represents financial assistance towards the overall cost of activities which are deemed subvention-worthy. In the absence of the same degree of control as is exercised over deficiency grant organisa- tions, the Government has no financial commitment towards main- taining the salaries of staff in such organisations at any particular level.

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But these organisations were exceptionally given supple- mentary subventions during 1976-77 to enable them to increase salaries for their staff in line with the increase approved for the Civil Service. This exceptional concession was made because they had not adjusted the salaries of their staff for some time and could not afford to do so without further financial assistance. It is likely that they will expect the same treatment on this occasion, notwithstanding the fact that the Government has not entered into any commitment to supplement their subventions.

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In the event that applications are received from such organi- sations, it is proposed that consideration should be given to each request on its merits having regard to:

(a)

(b)

whether the organisation is providing services which contribute towards meeting an approved policy target; and

whether and to what extent the organisation can

afford to meet the cost of a salary increase from its own resources.

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