*************************************************
The Government has finalised a package of proposals relating to fringe benefits for civil servants following the completion of a comprehensive review.
A spokesman for the Civil Service Bureau said today (April 4) that in rationalising the payment of these allowances, the Government had considered the policy objectives of the allowance review, legal considerations, the views of the advisory bodies and feedback from staff.
"We have been guided by the principles of lawfulness, reasonableness and fairness in considering whether an allowance should be removed or retained, and what should be the appropriate rates for an allowance," the spokesman said.
"We have also borne in mind the possible impact on eligible officers," he said.
The Civil Service Bureau (CSB) issued a consultation note in September 2005, setting out the proposed changes of the fringe benefit type of civil service allowance for staff consultation. Twenty-eight written submissions were received upon the completion of the consultation in November.
Before finalising the package of changes, the CSB has sought the advice of advisory bodies on civil service salaries and conditions of service.
Upon the approval of the Finance Committee of the Legislative Council next month, these changes will be implemented from mid-2006, the spokesman said.
The more significant components of the proposals include:
* adjusting the ceiling rates for Overseas Education Allowance and Local Education Allowance to the 1997 level for new claimants starting from the 2006-07 or the 2007 school year, as the case may be, and maintain these rates until the phasing out of the allowances;
* freezing the current ceiling rates for Overseas and Local Education Allowances for existing claimants, with no further rate adjustment;
* adjusting the ceiling rates for School Passage Allowance to the 1998 level for existing and new claimants starting from their next cycle, and maintaining these rates until the phasing out of this allowance; and
* abolishing the provision of Air-conditioning Allowance and Hotel Subsistence Allowance.
"Where appropriate, we have incorporated into the finalised package measures that address staff concerns or further rationalise the administration of some allowances," the spokesman said.
These measures include:
* keeping the rates of Overseas Education Allowance and Sea Passage Allowance in foreign currencies for all claimants;
* removing the proposed restrictions on School Passage Allowance in respect of the number of splits and the class of travel;
* retaining the provision of Furniture and Domestic Appliances Allowances on their existing terms;
* changing the provision of Removal Allowance into fully non-accountable without adjusting the allowance rates; and
* retaining the provision of Hotel Accommodation on its existing terms.
"We believe the finalised package of proposals has largely addressed the main concerns advanced by staff and has achieved the broad objectives of the allowance review," the spokesman added.
The final package of change proposals is estimated to bring about savings of $30 million for the first year and cumulative savings of $390 million over the first five years.
A note setting out the final change proposals has been uploaded onto the CSB homepage at www.csb.gov.hk.
Ends/Tuesday, April 4, 2006
Issued at HKT 19:08
NNNN
