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Following is the transcript of remarks (English portion) by the Chief Executive, Mr Donald Tsang, at a media session after the Executive Council meeting this morning (June 16):
Chief Executive: The Executive Council has decided today to propose a pay cut of 5.38% for civil servants in the upper salary band, and a pay freeze for those in the lower and middle bands. The proposal will be conveyed to the staff side. The Executive Council will make a final decision once it has received the staff side's response.
I take this opportunity to announce that the 33 politically appointed officials and I myself will take a voluntary pay cut of 5.38% with effect from July 1.
We do this to show that the team of political appointees is fully prepared to stand shoulder to shoulder with the people of Hong Kong to ride out the current difficult times.
The remuneration of the political appointees has been approved by the Legislative Council's Finance Committee. It is fixed. It is without any annual adjustment mechanism. In deciding our pay cut level, we have made reference to the outcome of the latest Pay Trend Survey.
But I should stress that the remuneration systems for civil servants and political appointees are separate. The political appointees' voluntary pay cut should in no way affect the Government's final decision on civil service pay adjustment.
Hong Kong's economy has been badly hit by the financial crisis. We understand that everyone has been affected in one way or another: some suffered a pay cut, some had their bonus reduced, and some others even lost their jobs. While the recent economic statistics have shown signs of stability, the fundamentals of the global economy have not significantly improved. Added to that is the threat of the human swine flu. So, great challenges still lie ahead.
In the circumstances, the team of political appointees hopes to make clear its commitment to stand together with the public and volunteers a pay cut. I am confident that together we can overcome the current economic difficulties.
Reporter: Political appointees and civil servants are separate categories. Why should they get exactly the same cut? Why couldn't they take more, why is it only 5.38%?
Chief Executive: We believe this is a time that we have to make a commitment and public stand to show that despite the fact we do not have any adjustment mechanism and the pay is essentially a fixed pay, we are prepared to follow the pay trend which is for the senior employees in the private sector, and that level is about 5.38%. The two systems are completely separate. Just look at, for instance, in 2007 there was a pay adjustment upwards for civil servants and the political appointees did not follow suit. There was no pay increase for them. Last year as well, there was a pay adjustment upwards for senior civil servants, and there was no simultaneous adjustment for the political appointees' salaries. So the two systems are quite separate. What they have done, and what we have all done, is to volunteer a pay cut in response to the economic situation and the feelings that in the private sector people have suffered much and in particular, political appointees to show they are with the public in this regard.
(Please also refer to the Chinese portion of the transcript.)
Ends/Tuesday, June 16, 2009
Issued at HKT 13:11
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