TNAG-1751-FCO40-2471-Future-of-Hong-Kong-Parliamentary-debates-1988 — Page 59

Sterling safeguards

now

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We are aware that recent depreciation of Hong Kong dollar along with US dollar has had impact on value of pensions.

Wrong to determine policy on the basis of short term trends. Link between Hong Kong and US dollars, introduced in 1983, provides stability over long term.

Hong Kong Government awards annual pension increases based on movements in Consumer Price Index in Hong Kong.

These afford measure of protection to extent that exchange rate movements are reflected in Consumer Price Index.

LOCALISATION

Since the early 1960s 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, Hong Kong Government has ceased to recruit expatriate officers on permanent and pensionable terms.

Hong Kong Government has approved a limited compensation scheme. Scheme will among other things enable pensionable overseas officers who are required to retire early, or who are superseded for promotion to make way for local officers, to be compensated for loss of career.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

Question of long term security for officers who are on contract terms is one for Hong Kong Government.

PAY REVIEW

Question of a pay review for the Hong Kong Public Service is a matter for Hong Kong Government.

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- I am confident that they will take any representations they receive on this matter into account before making a decision.

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