A package of proposals regarding civil service fringe benefits, estimated to bring about initial savings of $30 million and cumulative savings of $390 million over the first five years, has been finalised, the Civil Service Bureau says.

Upon the approval of the LegCo's Finance Committee next month, these changes will be implemented starting around June.

The bureau said today the policy objectives of the allowance review, legal considerations, the views of the advisory bodies and the feedback from staff had been considered in rationalising the payment of these allowances.

In considering whether an allowance should be removed or retained, and what should be the appropriate rates for an allowance, the bureau said it has been guided by the principles of lawfulness, reasonableness and fairness.

The possible impact on eligible officers has also been taken into account in the process, it added.

The proposals include:

* adjusting the ceiling rates for overseas and local education allowances to the 1997 level for new claimants starting from the 2006-07 or the 2007 school year, and maintain these rates until phasing out of the allowances;

* freezing the current ceiling rates for overseas and local education allowances for existing claimants, with no further rate adjustment;

* adjusting the ceiling rates for school passage allowance to the 1998 level for existing and new claimants starting from their next cycle, and maintain these rates until phasing out of this allowance; and

* abolishing the provision of air-conditioning allowance and hotel subsistence allowance.

The bureau launched a two-month staff consultation on the proposed changes of the fringe benefit type of civil service allowance in September 2005, and 28 written submissions.

Staff concerns addressed

Before finalising the package of changes, the bureau sought the advice of the advisory bodies on civil service salaries and conditions of service.

The following measures that address staff concerns have been included:

* keeping the rates of overseas education allowance and sea passage allowance in foreign currencies for all claimants;

* removing the proposed restrictions on school passage allowance in respect of the number of splits and the class of travel;

* retaining the provision of furniture and domestic appliances allowances on their existing terms;

* changing the provision of removal allowance into fully non-accountable without adjusting the allowance rates; and

* retaining the provision of hotel accommodation on its existing terms.

For more information about the proposals, see the bureau's website.