-13rules which laid down a one-year, and not a seven-year, residence requirement as a condition of eligibility for CSSA. E.4 36. Modifying rights protected by Article 36 Social welfare rights which qualify as rights protected by Article 36 are subject to modification pursuant to policies generated by the Government in accordance with Article 145, as that Article plainly envisages. The importance of a right being recognized as a social welfare right protected by Article 36 is that any restriction subsequently placed on that right is subject to constitutional review by the Courts on the basis of a proportionality analysis (as Lord Pannick QC, appearing for the Director27 accepted). The Government was therefore entitled to change its policy and to impose the seven-year requirement in place of the one-year requirement. But it is also clear that such modification is subject to constitutional review. 37. I pause at this stage to dispose of an argument made on Madam Kong’s behalf which cannot be accepted. It was submitted by Professor Chan that because Article 145 authorizes the Government to formulate policies “on the development and improvement of this system in the light of the economic conditions and social needs”, it can only make changes which improve welfare benefits (in the sense of making them more generous) and cannot introduce a “retrogressive” change by imposing a much longer qualifying period of residence. But Article 145 does not address, let alone freeze, the eligibility conditions or the level of any particular benefits. What it does is to make it clear that the Government may formulate policies “on the development and improvement of [the previous] system”. Lord Pannick rightly submitted that Article 145 does not preclude the elimination or reduction of particular welfare 27 With Mr Abraham Chan.

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