TNAG-0734-FCO40-938-Reports-of-Standing-Committee-on-the-Planning-Progress-of-Ho-1978 — Page 12

CONFIDENTIAL,

NOTES FOR THE STADING COMMITTEE ON HONG KONG

15 DECEMBER 1978

1.

HKIL 013/1

18

RECEIVED IN 726 SAY KO. 51 2 1 DÉCI278

INDEX

PA

The bow CLE

SOCIAL WELFARE, INCLUDING THE SICKNESS AND DEATH BENEFITS SCHEME (Submission, Governor's letter and Mr Heppell's note circulated)

1.1 The Governor is proposing to go ahead with a White Paper covering all the social welfare proposals in last year's Green Paper except the contributory and compulsory sickess, death and retirement schere. The Governor has reaffirmed his commitment to provide coverage against these risks; but he sees the following difficulties in setting up a new, special scheme in order to do it:

a) the number of workers likely to qualify would be insufficient to justify the expense and the difficulty in setting up the scheme; b) a quarter of those qualifying (including especially public servants) already receive as good or better benefits from occupational schemes

and would resent being made to join a new scheme;

c) the inclusion of retirement benefits could provoke unwelcome questions on the future of the territory.

1.2 Mr Heppell, who will be present, has argued that the difficulties are not insurmountable. He has suggested that the next step might be

a new Green Paper setting out in a neutral way the case for and against

contributory scheme whether voluntary or compulsory.

1.3

You will wish to emphasise the importance we place on the introduc- tion of self-contained social security scheme as a basis for further

a

development.

1.4 mwo other points may be raised in discussion:

a) whether we should (as Tord Gorony-Roberts suggested in his comment on your report on your visit to Hong Kong) try to insist on a non- contributory scheme;

b) whether we ought at this stage to demand the inclusion of unemploy

ment benefit.

/1.5

CONFIDENTIAL