The Health, Welfare & Food Bureau says Hong Kong should refrain from making unjustified and drastic changes to its welfare policies and measures, adding continuous demands for increases in social welfare benefits is not conducive to the city's long-term economic development.

In response to the Basic Needs Study by the Hong Kong Council of Social Service, the bureau said Hong Kong had been providing comprehensive assistance to those in need in the society within its welfare system.

Apart from direct monthly financial assistance provided under the Comprehensive Social Security Assistance Scheme, Old Age Allowance and Disability Allowance, the Government has also been providing a wide range of heavily subsidised housing, education and medical services.

Unreasonable suggestions

As for the suggestion by the council's study that CSSA should take into account private medical consultation fees, the Government regarded it as unreasonable as the existing public medical services have been taking care of all CSSA recipients.

The resources allocated to social welfare by the Government had been increasing year by year in the past 10 years. Spending on the CSSA had increased from $3.4 billion in 1994-95 to this year's $17.8 billion, while the number of recipients had jumped from 140,000 to 540,000.

Initial estimates for the implementation of the proposals of the HKCSS would cost the public purse over $5 billion more in CSSA each year, representing 30 per cent of current expenditure in this area.

The bureau said the Government had strong reservations about the proposals, adding the community was also unlikely to agree with them.

The council's suggestions had exceeded basic needs to focus on quality of life. The proposed adjustment would mean the average monthly cash assistance for a family of four would be increased from $9,118 to about $13,000. The sum includes mobile phone charges, religious ritual commodities and expenses for attending funerals and banquets.

No further fundamental adjustments needed

The bureau said many of the council's requests have in fact been met in one way or the other through channels other than CSSA.

The present level of CSSA has not only covered their basic needs, it has also taken care of the special needs of the recipients, it said. The CSSA is annually adjusted according to the Social Security Assistance Index of Prices and there is no pressing need for further fundamental adjustments.