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(b) subject to any other developments, we should begin the consultations by explaining why this is not a traditional compensation scheme and outlining a possible approach to phasing of payments; and that before concluding the consultations we should table the full outline scheme as it
has been agreed in principle between Ministers; and
(c) over the next few days we should further refine the explanatory and defensive material attached to this
submission;
(d) after the consultations we should submit again, setting
out the options.
ODA agree these recommendations and our legal consultant is
content.
Background and Argument
HMG's proposal
3.
The basic proposal which we put to the Treasury, and which the Chief Secretary has agreed in principle, is for
HMG to pay HMOCS officers serving in Hong Kong in 1997 compensation/incentive payments, calculated according to the factors of a Hong Kong Limited Compensation Scheme, and amounting to a total of about 1.5 times one year's salary
total for a typical officer), with 20% of the notional payable in 1997 and further instalments of 10% payable annually thereafter provided that the officer remains in the Hong
Kong SAR public service. We estimated the costs of the
scheme at a total £20 m £30 m, spread over eight years
-
from 1997, with an absolute maximum of £44 m.
4. The Treasury emphasize that we should do all we can to minimise costs. We are keeping them informed and have shown
them that we have looked carefully at their ideas for
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