For discussion FCR(96-97)4
on 12 April 1996
ITEM FOR FINANCE COMMITTEE
HEAD 112 - LEGISLATIVE COUNCIL COMMISSION
Subhead 366 Remuneration and reimbursements for Members of the Legislative Council
Subhead 872 Setting up and winding up allowances for Members of the Legislative Council
Members are invited to approve modifications to the remuneration package for Members of the Legislative Council as recommended by the Commission on Remuneration for Members of the Legislative Council with immediate effect.
The Commission on Remuneration for Members of the Legislative Council (the Commission) has recommended modifications to the remuneration package for Members of the Legislative Council (LegCo) which was approved by the Finance Committee.
2. To implement the recommendation of the Commission, we propose that -
- the non-accountable portion of the travelling and entertainment component of LegCo Members operating expenses reimbursement be increased from 30% to 50%;
- all LegCo Members be eligible for an accountable monthly office rental allowance of up to $12,340 and a one-off setting-up allowance of up to $100,000 irrespective of whether they would give up their allocated offices in Central Government Offices;
- re-elected LegCo Members who have not moved office be eligible to claim the setting-up allowance for renovation work up to a limit of 50% of the allowance; and
- LegCo Members be eligible to claim the winding-up allowance up to the present ceiling of $180,000 to compensate their staff who have worked for them for less than two years on a pro-rata basis at the rate of two thirds of the employees last months salary for each year of service if Members have to cease office for reasons over which they have no control.
3. The Commission has completed its consideration of the report of the LegCo Subcommittee on Review of Allowances for Members of the Legislative Council (the Subcommittee) and other related points raised by LegCo Members. It has recommended certain modifications to the current remuneration package for LegCo Members. We have decided to accept the Commissions recommendation.
4. As regards paragraph 2(a), the Commission notes that many LegCo Members use a large portion of the operating expenses reimbursement to cover travelling and minor entertainment expenses and that they have genuine problems in obtaining receipts to support all their claims. The Commission accepts the Subcommittees proposal to increase the non-accountable portion of the travelling and entertainment component of LegCo Members operating expenses reimbursement from 30% to 50%.
5. As regards paragraph 2(b), directly elected Members are at present eligible for an accountable monthly allowance of up to $12,340 for office rental, rates, management charges and utilities to operate an office in their constituency. They are also eligible for a one-off allowance of up to $100,000 to set up their district offices. For non-directly elected Members, they are eligible for these allowances if they surrender their allocated offices in Central Government Offices, West Wing. The Commission is not fully convinced that all LegCo Members have the same need for a district office as well as a central office. However, having regard to Members need to accommodate their assistants and LegCo documents, the increasing workload of legislators, and in order to ensure equal treatment for all LegCo Members, it agrees on balance that all LegCo Members should be provided with both a central office and the associated allowances to enable them to set up and operate district offices.
6. As regards paragraph 2(c), LegCo Members who have claimed the setting-up allowance in the previous term can at present claim up to 50% of the allowance, i.e. $50,000, on a one-off and reimbursement basis, for the purposes of removal or expansion of office or purchase of equipment and furniture. The Commission proposes to relax the present rule governing the setting-up allowance so that it can also meet the cost of renovating an existing office, e.g. for repainting and alterations to the office layout, so long as it does not exceed 50% of the allowance.
7. As regards paragraph 2(d), LegCo Members can at present claim the winding-up allowance of up to $180,000 to provide statutory severance payments under the Employment Ordinance to their staff who have worked for them for not less than two years if they choose not to stand for re-election, or cease to be LegCo Members for reasons over which they have no control. Subject to the present ceiling of $180,000 remaining unchanged, the Commission recommends that, in the latter case (i.e. if they cease to be LegCo Members before the end of their term for reasons over which they have no control), LegCo Members should be able to claim the winding-up allowance to compensate staff who have worked for them for less than two years, and hence are not covered by the Employment Ordinance, on a pro-rata basis at the rate of two thirds of the employees last months salary for each year of service.
8. On 14 July 1995, Finance Committee considered FCR(95-96)44 and approved a revised remuneration package for LegCo Members. Provision has been made on the assumption that all LegCo Members would claim up to the maximum of their entitlement for various allowances. The Commissions present proposal to relax the travelling and entertainment component of LegCo Members operating expenses reimbursement will not require any increase in provision.
9. Members have approved a commitment of $17.8 million1 for paying one-off allowance to LegCo Members for setting up and winding up their offices during the term commencing 1 October 1995. The present proposal for non-directly elected LegCo Members to maintain a district office without giving up their central office will require additional commitment of $2 million. Subject to Members approval of this proposal, we shall increase the commitment from $17.8 million by $2 million to $19.8 million under delegated authority.
10. The Commissions proposals relating to relaxation of rules governing the setting-up allowance for renovation work and the winding-up allowance to compensate LegCo Members staff will not result in increase in commitment, which has been estimated on the assumption that all LegCo Members will claim up to the maximum limits for these one-off allowances.
11. On 14 July 1995, the Finance Committee approved the remuneration package for LegCo Members as recommended by the Commission in its report published in June 1995. At its meeting on 20 October 1995, the LegCo House Committee decided to form a Subcommittee to review the use of LegCo Members operating expenses reimbursement and allowances. The Subcommittee submitted its Report to the Commission in December 1995 for consideration. The Subcommittee also held a meeting with the Commission in January 1996 to exchange views on the matter.
Administration Wing, Chief Secretarys Office
March 1996
1 The total commitment during the term is estimated on the assumption that all directly elected LegCo Members will claim up to the maximum limit of the setting-up allowances for their CGO, West Wing Office at $50,000 and their district office at $100,000; that all other Members will also claim the $100,000 setting-up allowance by giving up their offices at CGO, West Wing and that all Members will claim up to the maximum limit of the winding-up allowance of $180,000.
Last Updated on 2 December 1998
