Confidential
3. The Pensions Ordinance 1989 may also be relevant. (Again I do not know whether this has been amended or replaced.) Section 4 of that Ordinance provides that all money to be granted by way of pension, gratuity or other allowance under the Pensions Ordinance shall be charged on or paid out of the general revenues of the colony; in other words it would ultimately be included in an Appropriation Bill. I have not examined the Pensions Ordinance closely. My impression is that special provision may need to be made by Ordinance to disburse public funds to provide the lump sum for pensions of HMOCS officers. The lump sum would be a charge on the general revenues (see section 4 of the Public Finance Ordinance 1983) and would need to be included in an Appropriation Bill.
4.
I would imagine that it would cause a major
constitutional crisis if LEGCO's power to approve the disbursement of public expenditure by means of Appropriation Bills were to be circumvented by Royal Instructions directing the Governor to hand over the lump sums. I would also definitely advise against amending the Letters Patent so as to make specific provision for the Hong Kong Government to hand over money without first including it in an Appropriation Bill. Letters Patent IX reserves the Crown's power to make legislation. This would not be by Act of Parliament, but by prerogative Order made by Her Majesty in Council. Careful thought should be given before it is decided to go down this road. How often, if ever, has this power been used and in what circumstances? It would be a direct challenge to LEGCO.
AELABP
Shelagh Brooks,
S Brooks
Confidental
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