FCO_49_622_PLANNING_PAPER_ON_HONG_KONG_1976 — Page 36

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adequate.

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Social welfare arrangements are more

controversial.

They are financed entirely from revenue

and are quite different in character to those in the UK

National Insurance scheme or even the Singapore Provident

Fund, both of which are based on compulsory contributions.

In a recent despatch the Governor described the Government's

position to be: "To safeguard the position of lower

income groups by schemes of heavily subsidised housing

and heavily subsidised or free education and health

services, financed from general revenue; and in addition

to maintain the incomes of vulnerable groups such as

the handicapped, aged or unfortunate by cash payments,

supplemented where appropriate by special services, also

all financed from general revenue". We have no quarrel

with the approach to housing,education and health services,

and we accept that expenditure on social welfare

cash payments and special services has increased from

HK$ 59.7 m in '71/72 to HK$ 406.8m in 176/77. While

we would prefer a compulsory contributory scheme to the

system of cash payments (some of which are subject to

means test) financed from revenue, it is the Governor's

view that this would have little attraction for Hong Kong

people and that the present scheme can be adapted and

expanded to do more within the time available up to the

'80s, and with less friction in Hong Kong, than would be

possible if an attempt were made now to substitute an

20tributory scheme Page fent

Page 36tirely new compiphge

are developed in Annex C.

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