TNAG-1442-FCO40-1926-Constitutional-development-in-Hong-Kong-1986 — Page 114

XCC (86) 153

Page

2

intending

candidate from standing for election to the Legislative Council. Members noted that the stipend could be revised annually by reference to the Pay Trend Survey conducted for the purpose of revising civil service salaries.

5

The stipend may be claimed in whole or in part. Unlike the allowance for the reimbursement of expenses, which is tax free, the stipend is subject to tax in the same way as any other income.

Suggestions for change

6

It has been suggested that the stipend and allowance could be combined into one non-taxable allowance. This allowance could however be non-taxable only to the extent that it is for

for the reimbursement of expenses. This would defeat the object of providing a stipend for Members of the Legislative Council which is to provide a source of income for the Members and Members's family. The present system provides both for reimbursement of

of expenses and for income for the Member. It is not recommended that there should be any change to the principle of the system.

7

and

There has also been comment that it is inappropriate that the Urban and Regional Councils allowances and the Legislative Council allowance are identical. The Urban Regional Councils are financially autonomous institutions and have adjusted their allowances in line with UMLELCO by deliberate decision. Without interfering with this autonomy it would not be possible to ensure that the allowances are pitched at a lower level than that of UMELCO. It should be noted that Urban and Regional Councillors do not

not receive а stipend.

Proposal

8

of

the

It is proposed that the ceiling for the allowance for the reimbursement of expenses

expenses incurred by UMELCO Members and for the stipend payable to Unofficial Members Legislative Council be increased with effect from the commencement of the next Legislative Council session, provisionally set for 8 October 1986.

9

Proposals in early 1985 to provide for UMELCO in legislation have not been is intended that increases be As Members were advised in

remuneration and allowances pursued and, as in 1985, it implemented administratively. memorandum XCC(85) 92 which was considered on 9 July 1985, the proposed increases are subject to the

are subject to the approval of the Finance Committee.

*