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Sterling safeguards now
We are aware that the recent depreciation of the Hong Kong dollar along with the US dollar has had an impact on the value of pensions. But it would be wrong to determine policy on the basis of short term trends. The link between the Hong Kong and the US dollars which introduced in 1983 provides stability over the long term. Furthermore, the Hong Kong Government awards annual pension increases based on movements in the Consumer Price Index in Hong Kong. These afford a measure of protection to the extent that exchange rate movements are reflected in the Consumer Price Index.
LOCALISATION
Since the early 1960s the Hong Kong Government has appointed overseas candidates to fill vacancies in the public service only if no local candidates were available, except in the Administrative and Police services. Since 1985, the Hong Kong Government has ceased to recruit expatriate officers on permanent and pensionable terms.
The Hong Kong Government has approved a compensation scheme which will among other things enable pensionable overseas officers who are required to retire early, or who are superseded for promotion to make way for local officers, to be compensated for loss
of career.
FUTURE OF OVERSEAS CONTRACT OFFICERS
The question of long term security for officers who are on contract terms is one for the Hong Kong Government.
PAY REVIEW
The question of a pay review for the Hong Kong Public Service is a matter for the Hong Kong Government. I am confident that they will take any representations they receive on this matter into account before making a decision.
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