TNAG-0788-FCO40-992-Development-of-social-policy-in-Hong-Kong-proposed-contribut-1978 — Page 152

should be excluded from the family means test. This has never been given substantial publicity, but it does, of course, amount to a significant modification of the family means test: and one whose significance I suspect has not been fully appreciated outside social welfare department, although it has been made clear in the pub ished literature.

I think that both you and I regard the most interesting question mark over the future as being how the proposed contributory scheme finally takes shape. I was heartened to note your remark that now the outline of

such a scheme had been made public, there could be no turning back. This has always seemed to me to be the main merit of the green paper proposals. We do not need to cling to each aspect of the proposals provided what we get at the end of the day is a contributory scheme which improves substantially the quality of social security provision in Hong Kong. The question of whether the scheme should be compulsory or not will have to be resolved at the political level. There is, of course, no operational or technical reason why a .compulsory scheme could not be launched. One final thought, however,

to keep us from undue optimism; there was a report by an inter- departmental committee in 1967 proposing a full-blooded social insurance scheme. It was published without any Government commitment; and promptly pigeon-holed, except for the proposal that there be a proper public assistance scheme. As it happens, I think it was right to do so because it would have been very difficult for Hong Kong to take such a long leap into the future all at once. But it is an indication of the dangers of counting our chickens before they are hatched.

The Government Actuary's Department here have sent a report to Hong Kong on the contributory scheme. I have a copy and have commented briefly on it to the Director of Social Welfare, copying it to the Social Services Branch in the Secretariat. All the points made in the report are well taken. You may wish to ask Hong Kong if a copy can be sent to you. I don't suppose that I ought to send you a copy without Hong Kong's agreement, as in this respect the GAD are really acting on behalf of Hong Kong. I got a copy because I acted as the link with GAD and briefed them on the scheme.

Что

sincerely

Strane Herren

T. S. Heppell.

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