TNAG-0695-FCO40-845-Policy-on-salaries-for-civil-service-in-Hong-Kong-1977 — Page 255

C.S. 166

CONFIDENTIAL # *

-

8.

For example, if the Universities should ask the Government to assist towards the cost of increasing salaries for their non-academic staff, consideration could be given to the provision of an earmarked grant, to the extent that additional financial assistance is required, on grounds of rising costs.

27

In respect of all subvented organisations it is proposed that the Deputy Financial Secretary be authorised to approve such supple- mentary provision as may be necessary.

Financial Implications

28

The total gross cost of these proposals is estimated at $285 millions for the current year. However, the cost in respect of staff for the Urban Council and Housing Authority, amounting to about $26 millions, will be recovered. A further $7 million will be saved in respect of COLA subsumed in the revised MOD 1 salaries. But against this, a special grant of about $17.5 million will be payable to the Urban Council in accordance with the Memorandum of Administrative Arrangements. So the net cost of the proposals during 1977-78 is estimated to be about $270 million:

Civil service (excluding Urban Council and Housing Authority)

Less COLA subsumed in revised

MOD 1 salaries

Urban Council grant

Subvented organisations, say,

$ million

$ million

175.0

7.0

168.0

17.5

84.5

270.0

CONFIDENTIAL ##

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