TNAG-0747-FCO40-951-Visits-of-Foreign-and-Commonwealth-officials-to-Hong-Kong-1978 — Page 98

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before his views are known. We agree, however that it is necessary to review the role of departmental Staff Consultative Councils, particularly in relation to pay and structure matters that affect staff in several departments. Such matters should probably continue to be referred to the appropriate Consultative Council, after which they should be considered centrally, using new negotiating procedures tailored to suit local requirements. Such new procedures must, from the outset, enjoy the confidence of both the staff and the Government.

(i)I: The form a contributory social security scheme should take (paras. 30 38)

It is correct that there has been rather

more support for a compulsory scheme than was expected, from both the employers' and union sides,, although a survey carried out by the Home Affairs Department in conjunction with Hong Kong University showed that of the employees asked 41% favoured compulsory participation while about 48% did not. There are clearly a number of advantages in a compulsory scheme, but there are disadvantages from the political point of view, as well as fears (mentioned by Mr. Hurst) that a compulsory.scheme might be criticised as seeking to reduce Government expenditure by transferring a proportion of Public Assistance clients to the contributory scheme.

There is clearly much more work to be done on these proposals before a final decision can be. reached. We have written to the Government Actuary's Department to clarify various points in their report, and H.E. the Governor will be having discussions in London later this month with

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