TNAG-0788-FCO40-992-Development-of-social-policy-in-Hong-Kong-proposed-contribut-1978 — Page 24

Mr Murray

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CONFIDENTIAL

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HKK 234/1

RECEIVED IN REGISTRY NO. 51

26 APR 1978

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PS/Lord Goronwy-Roberts

HONG KONG: SICKNESS, INJURY & DEATH BENEFIT, SOCIAL SECURITY SCHEME

1. The Overseas Labour Adviser and I attended a meeting with Mr Heppell of DHSS and the Governor of Hong Kong and the Secretary

for Social Services in Hong Kong.

2.

The meeting was to discuss the feasibility of a major shift in emphasis from the scheme outlined in last year's Green Paper towards a scheme which would be compulsory for both employers and employees. All present agreed that a compulsory scheme had signifi- cant advantages over a voluntary one. The Governor has decided to put both schemes to the Executive Council with a recommendation in favour of the compulsory one.

3.

The recommendation to accept the compulsory scheme is being

made for the following four reasons:

4.

a)

b)

it would be much easier to administer;

for a given level of benefit the contributions can be much reduced and vice versa;

c)

it overcomes the problem, inherent in a voluntary scheme, that the only contributors might be the old or others most likely to make claims;

a) it prevents the possibility of lack of public support causing a voluntary scheme to fail.

I recommend that Lord Goronwy-Roberts confirm to the Governor at their meeting tomorrow that this proposal has his support. The

OLA concurs.

24 April 1978

cc: OLA

CONFIDENTI AL

J A B Stewart

Hong Kong & General Dept