-31bodied adults and children; and of 20% for households with more than three
such persons.76 It contained a calculation of the percentage savings to be
achieved by such measures, ranging from a saving of 5% in single member
households to 17% in households with five members.77 That recommendation
was implemented in June 1999.78 Such a policy, creating disincentives against
the development of a culture of dependence, may readily be seen as rationally
aimed at ensuring sustainability.
J.2
Reduction in the standard rate
82.
Another rational response to concerns about mounting expenditure
and sustainability was the order of the Chief Executive in Council to reduce
standard rates of CSSA across-the-board by 11.1% to take effect on various
dates in 2003 and 2004.79
83.
The Legislative Council Brief described the problem faced as
involving unacceptable unabated growth in welfare expenditure. It noted that
upward adjustments had been made to standard rates by 6.5% in 1997-98
and 4.8% in 1998-99. 80 However, as at December 2002, the total CSSA
caseload was 266,571, representing a year-on-year growth of 10.3%, with the
“unemployed” CSSA caseload having increased by 40.3% over the same period.
This led to the projection that the approved provision of CSSA in 2002-03 of
$16 billion (already up 11.1% on actual the expenditure of $14.4 billion
76
Report §49.
77
Executive Summary, §22.
78
Mr Cheung’s Affirmation, §40; Legco Brief HWF CR 2/4821/58 (03) Pt 68, §11, 25
February 2003.
79
Legco Brief HWF CR 2/4821/58 (03) Pt 68, 25 February 2003, §1.
80
Ibid, §2.
Select target paragraph3
Connect to a paragraph
Connect to an entity
Disable highlights
Add to table of contents