I am writing to update you on the latest developments of the first phase review of fringe benefit type of allowances.

When I last wrote to you on 14 April on the review of civil service allowances, I advised you that taking account of the staff's views, we had decided to take forward the review of fringe benefit type allowances in two phases.  Under the first phase, we shall focus on change proposals that affect relatively fewer civil servants or are less complicated.  As regards those change proposals which are likely to have a more extensive impact within the civil service (e.g. change proposals concerning education allowances and housing allowances), we aim to consult staff later this year under the second phase of the review exercise.

We have today written to the staff sides of the central consultative councils, seeking their views on the change proposals in respect of the following allowances :

(a) passage and related allowances, namely leave passage allowance, sea passage and sea baggage allowance; and

(b) housing-related allowances and benefits, namely provision of hotel accommodation, hotel subsistence allowance, provision of furniture and domestic appliances, furniture and domestic appliances allowances, removal allowance and air-conditioning allowance.

A note setting out these change proposals has been uploaded onto the CSB homepage at www.csb.gov.hk.

As I have repeatedly emphasised, we are guided by the principles of lawfulness, reasonableness and fairness in carrying out the allowance review.  The Department of Justice has advised that there is some scope under the Basic Law and the employment contracts for serving officers for rationalising the terms of provision of civil service allowances and that the change proposals we have just put forward are lawful.  In developing these change proposals, we have taken care to strike a balance between the interests of civil servants on the one hand, and the need to modernise the management of the civil service while achieving savings on the other.  I appeal to colleagues to consider these change proposals in an open and rational manner against the above considerations.

Taking account of the views of the staff sides of the central consultative councils, we shall seek the views of the advisory bodies on civil service salaries and conditions of service.  In making a decision on the change proposals, we shall give due considerations to all relevant policy, legal and other factors, including impact on staff.  It is our intention to implement the new measures arising from the phase one review within this year.

I look forward to your continued support and understanding as we take forward the review exercise.

                                                                                                  

                  Yours sincerely,

              

                 (Joseph W P Wong)
                Secretary for the Civil Service