CONFIDENTIAL
12. Sir Murray then referred to the Green Paper entitled "Helping those least able to help themselves" Half of this merely involves an
extension of existing provisions for Public Assistance. However, the other half, which had been drawn up after consulting Mr Heppell (DHSS), constitutes a new departure for the Colony: a Social Security Scheme. The suggested semi-voluntary contributory scheme has never been tried before but was considered suitable for Hong Kong's unique circumstances. Sir Murray felt that there were strong arguments in favour of both compulsory and voluntary contributory schemes, but he noted that a contributory scheme could be less distributive than a revenue-funded scheme and that the worst-off might lose,
whereas the slightly less poor would gain significantly. Mr Ho
(Secretary for Social Services in Hong Kong) and Mr Heppell are going to produce a paper on the comparative merits of voluntary and compulsory contributory schemes to be put before ExCo. Sir Murray has not made up his own mind about which would be best, but believes that a revenue-funded scheme as opposed to a contributory scheme had much to recommend it. Lord Goronwy-Roberts commented that a less bureaucratic scheme was desirable but that no other example of a scheme funded solely from revenue existed. Mr Hurst pointed out that any danger of the poorest suffering under a contributory scheme could be avoided by including an element of Government funding.
13. Sir Murray MacLehose said that some people in Hong Kong would dislike the new scheme and see it as a move towards a Western styled welfare state; but in reply to a question from Mr Smith he confirmed that there were no financial constraints on the proposals. Lord Goronwy-Roberts said that a comprehensive system, tied to contributions, would bring all into the scheme; in particular many
who do not receive benefits at the moment. This is the vital factor.
Sir Murray MacLehose drew attention to HMG's target as set out in the Prime Minister's statement that Hong Kong should develop the best Social Security System in Asia outside Japan. He pointed out that no other country in the region had unemployment benefit; on this basis
unemployment benefit is not a high priority for Hong Kong
•
5
CONFIDENTIAL
/particularly
No comments yet.
Private notes are available after approval.