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After considering the recommendations of the Independent Commission on Remuneration for Members of the District Councils of the Hong Kong Special Administrative Region, the Executive Council has endorsed the proposals to enhance District Council (DC) members' remuneration packages by providing an annual accountable medical allowance and an end-of-term gratuity for all DC members. Other enhancement proposals include providing an annual entertainment allowance for DC Chairmen, increasing DC members' operating expenses allowance (OEA), providing flexibility to DC members to use miscellaneous expenses allowances (MEA) to cover staff and/or rental expenses on an accountable and tax-exempted basis, as well as allowing DC members to keep the advance payment for OEA for the whole DC term. The proposals will be submitted to the Home Affairs Panel and the Finance Committee of the Legislative Council by the end of 2010.
The proposals to increase members' OEA and to provide flexibility for members to use MEA will be implemented from January next year. Other proposals will be introduced in the next DC term starting January 2012.
A spokesman for the Home Affairs Department (HAD) said, "The guiding principles of the review are : to make it possible and attractive for a broad spectrum of individuals from different sectors and all walks of life of the community to serve the public; DC members do not have any employment relationship with the Government; any proposal involving substantial changes to the remuneration package for DC members in one term should take effect in the following term."
The proposal to provide medical allowance to DC members has taken into account the heavy demands that the public have placed on them following the implementation of measures to enhance the role and functions of DCs in January 2008.
The proposed gratuity is to recognise members' service to the community on the one hand, and to help them tide over a possible period of financial instability should they decide not to seek re-election or fail to be re-elected, on the other.
"The medical allowance will be pitched at $26,970 per annum while the end-of-term gratuity will be 15% of the honorarium," the spokesman added.
As for the entertainment allowance, DC Chairmen will be given a maximum of $30,000 per annum to host functions on behalf of their respective DC.
"Besides, members' OEA will be increased by 15% having regard to the current claim pattern and average expenditure pattern of a ward office.
"As regards the enhanced arrangement for MEA and the improved advance payment arrangement for OEA, it is to respond to the operational needs of members for more effective discharge of their DC duties," said the spokesman.
Under the proposed arrangement for MEA, DC members can opt to use up to 50% of their allowance to meet staff and/or rental expenses on an accountable and tax-exempted basis. As for the new arrangement for advance payment for OEA, DC members may obtain an advance payment equivalent to two months of their OEA entitlement and keep the amount for the whole term instead of three months after the approval of the advance payment.
It is an established practice for the Government to complete the review of DC members' remuneration package and to announce the package about one year before the commencement of DC elections, so that potential candidates are aware of the remuneration package in good time before deciding whether to run in the elections.
Ends/Friday, November 5, 2010
Issued at HKT 19:16
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