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10.
UK lease would come to an end, and consequently that there was at least a question about what would happen thereafter.
C. The payments are intended not just to
compensate
staff, but to induce them to stay on until the hand-over date; but the high salaries and pensions benefits enjoyed by staff already provide such an inducement.
The FCO have argued against this:
a.
The perception of many HMOCS staff is that the Joint Declaration does not provide a reliable assurance of continued employment on acceptable terms.
b.
While the date of the termination of lease has long been known, staff recruited prior to 1984 generally expected that the aim would be to extend the lease and not transfer sovereignty.
C. Their higher remuneration entitles HMOCS staff to higher, not lower, compensation for the loss of the future earnings they would otherwise have enjoyed.
11. The difference in cost is some £15m
would total £48m, the Treasury package £33m year over 6 years from 1997.
-
the FCO package or some £23m per
12. It is probable that the HMOCS Association would seek judicial review of a compensation scheme on Treasury lines as failing to meet their legitimate expectations. If so, the available legal advice is that the court would be likely to base its judgement on whether or not the Government had put forward a reasonable justification for applying half factors. If the justification could be established in the terms set out in paragraph 9 above, the Government would have a good chance of winning.
Pensions safeguarding
13. Pension payments are composed of three elements:
a.
the basic pension, calculated by age, length of service and grade, paid in Hong Kong dollars by the Hong Kong Government;
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