TNAG-1363-FCO40-1809-Hong-Kong-Hansard-reports-and-minutes-of-the-meetings-of-the-1985 — Page 68

Speech by the Hon. J.N. Henderson, OBE, JP Secretary for Education & Manpower

in the Legislative Council on 20th November 1985

on Resolution under

Section 48A of the Employees' Compensation Ordinance

Sir,

I move the motion standing in my name on the Order Paper.

The levels of compensation specified under various

sections of the Employees' Compensation Ordinance are, in accordance

with the recommendations of a 1978 Working Party which reviewed the

then Workmen's Compensation Ordinance, revised every two years.

Since the present levels have been in force since July 1983, a

further revision is now due. To give insurers sufficient time to

make adjustments to their rates of premium, it is proposed to bring

the revised levels of compensation into force on 1 January 1986.

It is proposed to raise the present levels of compensation

by roughly 23.5%. The basis for this proposal is the 15.6% increase

in overall wage rates, according to the Census and Statistics

department, between March 1983, the date against which the present

levels of compensation were set, and March 1985. The present levels

of compensation were set on the basis of calculations made several

months before their introduction which underestimated the increase

in wage rates in the meantime. Allowing therefore for an adjustment

to correct this under-estimation and assuming a further 5% increase

in overall wage rates between March 1985 and January 1986, compensation

levels should be set, with effect from January 1986, 23.5% higher than

at present.