they
to CASIOR
AL
resent. S for SS replied that a figure of around $500 (actually $555) would represent only the basic rate of public assistance for a 4-person family. In addition they would qualify for further allowances for their actual rental payments, special dietary needs, and items like children's fares to school and cost of books etc. Added up together an average family of 5 could receive up to $950 a month which was very close to the take home pay of a factory worker. Mr. Heppell had included this point in his recent social security review and did not recommend any general raising of the P A level other than to keep pace with movements in the PA Index.
must
fiscal
A
H E added that it must be borne in mind that Hong Kong could not afford to be without, reserves as it was totally dependent on external factors for its very livelihood. As the Financial Secretary had explained in his Budget Speech if $3,200 M was ear- marked against contingent liabilities of $9,500 M, the balance left for meeting short term difficulties was less than $1,700 M. What was important was that the Financial Secretary was already budgetting for rather substantial increases in benefits for the lower income groups and had programmed these increases in the Government's expenditure into the 1980s: free schooling to F. III, subsidized public housing and almost free medical services. On the other hand, HE agreed that Mr. Hurst was probably right to be concerned with the adequacy of the basic rate and the necessity to introduce a wider definition of basic needs as overall living standards improved. Mr. Heppell had considered this point while he was carrying out his study last summer and the Government would continue to keep this under constant review.
Before going on to the next point Mr. Hurst sought confirmation that the public assistance scheme was not repugnant to the Chinese community as a certain industrialist leader had suggested. It was agreed that on the basis of the success the scheme enjoyed at present, such an accusation was not justifiable.
Contributory Scheme
5.
Referring to the proposal for a voluntary scheme made in the Green Paper, Mr. Hurst reported on his impressions of reaction to this by the industrial sector. He felt that it was quite obvious that the scheme was very much in the minds of industrialists who showed considerable interest but felt that the scheme must be compulsory to succeed. A minority of employers had expressed a view that Government should contribute more and trade unions had
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