TNAG-0788-FCO40-992-Development-of-social-policy-in-Hong-Kong-proposed-contribut-1978 — Page 20

· CONFIDENTIAL

Messrs. Heppell, liurst and Stewart.

(DFS)

(OES)

(i)II: whether the real value of the scales of benefit under the lublic Assistance Schere should 1 at least moderately increased at some future dote i budget surpluses conțime (para. 35 of the leport)

There is no restriction against improvements

in the real value of the scales of benefit under

the Public Assistance Scheme, 'other than that due regard must be had to the general level of industrial wages at the time. If justification for improving the

real value exists, this would be considered on its

merits and in relation to other calls on public

funds; the existence or otherwise of a budgetary

surplus is entirely irrelevant. There is the additional point that budget surpluses are unlikely to occur at a time of economic depression when the PA bill will be at its highest.

The scale of PA payments is of course reviewed regularly and revised to take account of the increase in the cost of living. The most recent revision took place on 1st February 1978 when the benefits were increased by over 10% in

cash terus.

While it is true that entitlement to Public Assistance is normally assessed on the basis of total household income it would be wrong to conclude from this thut the needs of individuals

ure ignored. The Social Welfare Department has discretionary power to increase public assistance payments to meet special essential expenses for individual members of the family such as extra diet expenses, school fees and related expenses, e In addition, the welfare allowance caters

specifically for individual needs and is not relat to income. The elderly aged 75 or over and the

CONFIDENTIAL