TNAG-0822-FCO40-1029-Policy-on-salaries-for-civil-servants-in-Hong-Kong-1978 — Page 404

G.F. 323

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(a) whether the organisation is

providing services which

contribute towards meeting an approved policy target; and

(b) whether and to what extent the

organisation can afford to meet the cost of a salary increase from its own resources.

For example, if the universities should ask the Government to assist towards the cost of increasing salaries for their non-academic staff, consideration could be given to the provision of an earmarked grant, to the extent that additional financial assistance is required, on grounds of rising costs.

23.

The foregoing criteria have been applied effectively and it is proposed to apply them again to any application which may be received from organisations subvented on a discretionary grant basis. However the Hong Kong Council of Social Service has recently represented that supplementary subventions to meet salary adjustments following a Civil Service increase should apply not only to the already subvented part of the salaries bill for staff engaged in subvention-worth activities (as has been the practice hitherto), but also to that part of the bill which is currently financed from other sources. Under the present arrangements the non-subvented but subvention-worthy parts of the salaries bill does not receive any salary adjustment. This causes considerable staff unrest and involves the agencies in additional expenditure. It is not in the public interest for the Government to generate difficulties for voluntary organisations vis à vis their staff. Accordingly it is proposed to allow organisations to apply for supplementary subventions on the basis proposed by the Council, but the amount of the supplementary subvention would, of course, have to take into account the overall financial resources of the applicant.

24.

In respect of all subvented organisations it is proposed that the Deputy Financial Secretary be authorised to approve such supplementary provision as may be necessary.

Financial implications

25.

The net cost of these proposals to General Revenue is estimated at $341 million for the current year. This estimate allows for about $6.4 million that will be saved in respect of Cost of Living Allowance subsumed in the revised MOD 1 salaries. It includes

a special grant of about $20 million that will be payable to the Urban Council in accordance with the Memorandum of Administrative Arrangements, and reimbursements

of about $3 million to the Housing Authority for services funded wholly from General Revenue

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