TNAG-1619-FCO40-2228-Executive-Council-of-Hong-Kong-memoranda-and-minutes-of-meet-1987 — Page 269

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Staff Sides, to modify the survey results if

necessary, to advise what the appropriate level of salary

of salary for the civil service should be and how in the long

long term civil service salaries might be brought into line with the level considered be appropriate. As regards fringe benefits, the area probably requiring further examination is that of civil service housing benefits which have been awarded following decisions taken by the Government in the past on social and staff morale grounds and for reasons of parity of treatment between local and overseas officers. The Administration has recently commenced a review of housing benefits and their administration with a view to modernising them. The results of this initial review will be forwarded to the Standing Commission for consideration and advice. The Standing Commission will also be asked to advise on how Model Scale 1 staff in particular should be treated in terms of salaries and conditions of service.

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Meanwhile the Standing Committee on Directorate Salaries and Conditions of Service has considered the results of the Directorate pay level survey (Annex A) and has concluded that Directorate salaries as at mid-1986 were at an appropriate level. It has advised that, pending the

that, pending the next overall review, Directorate salaries should be adjusted on an interim basis having regard to the results of the private sector

pay trend survey carried out by the Standing Commission and to the level of salary adjustment for Master Pay Scale Point 51.

Cost of living

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in the

Members may also wish to note the increase cost of living as indicated by the various consumer price indices. The figures based on the corresponding

the corresponding survey period are given below -

Mean Index for

Feb 1986 to Jan 1987

Hang Seng Consumer Price Index (i.e. household expenditure $6,500 to

compared with

Mean Index for

Feb 1985 to Jan 1986

+5.5%

$19,999 p.m.*)

Consumer Price Index B

+3.6%

(i.e. household expenditure

$3,500 to $6,499 p.m.*)

Consumer Price Index A

+3.0%

(i.e. household expenditure $1,000 to $3,499 p.m.*)

*using 1979/80 as the base year.

CONFIDENTIAL