LCQ9:Civil Service Pay Adjustment

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Following is a question by the Hon Chan Kwok-keung and a written reply by the Secretary for the Civil Service, Mr Joseph W P Wong, in the Legislative Council today (March 6):

Question:

It is reported that when meeting the civil service unions early last month, the Financial Secretary ("FS") pointed out that the current public expenditure took up an excessively high proportion of the Gross Domestic Product, and civil servants would face a pay cut. In this connection, will the Government inform this Council :

(a) of FS's purpose in mentioning to the civil service unions that civil servants would face a pay cut;

(b) whether it will implement its decision on the pay cut in the face of objections from all or most of the civil service unions; and

Reply:

Madam President,

The Financial Secretary (FS) met with representatives of the civil service central consultative councils and key service-wide staff unions in January 2002 as part of the consultation process in preparing the 2002-03 Budget. At the meeting, the FS explained that the SAR Government is facing a serious Budget deficit. Public expenditure is projected to account for 23 per cent of the Gross Domestic Product in the coming financial year. In drawing up the proposals for the 2002-03 Budget, therefore, the Government will need to carefully consider all views and balance the interests of different sectors with a view to formulating measures that will be in the long-term interests of the community as a whole.

Under the existing mechanism, the Government will consider the results of the annual private sector Pay Trend Survey and other important factors, including the state of the economy, budgetary considerations, changes to the cost of living, the staff sides' pay claims and civil service morale, before deciding on the annual civil service pay adjustment. The results of the 2002 Pay Trend Survey will be known in May. We shall decide on this year's civil service pay adjustment then in accordance with the existing mechanism.

End/Wednesday, March 6, 2002

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