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The Independent Commission on Remuneration for Members of the Executive Council and the Legislature of the HKSAR has recommended, and the Executive Council has endorsed, a 10% increase to the operating expenses reimbursement (OER) for Members of the Legislative Council (Legco).
It will be given effect to as soon as possible, subject to formal endorsement by the Finance Committee, tentatively set for November 3, 2006.
The Independent Commission has accepted Legco's earlier appeal that scope existed for the reimbursement item to be raised to enable Legco Members to better serve their constituents. The OER is an accountable reimbursable expenditure item for Legco Members to cover expenses for the running of Members' offices, staff expenses and other support services.
Having regard to past expenditure patterns, the increasing complexity of issues handled by Legco, etc., the Independent Commission is content that a 10% increase, relative to Legco's request for an increase of up to 20%, would be appropriate.
"The 10% increase would raise the OER level for each Legco Member from $1,361,880 to $1,498,070 per annum," a government spokesman said.
"The extra funding required would be around $8.2 million in a full year," he said.
If approved by the Finance Committee, the increase would be on top of the 1.9% annual inflation adjustment already applicable to the OER for Legco Members from October 1, 2006.
The Independent Commission has recommended that the restriction against shared employment of staff by Legco Members should be relaxed. The relaxation would facilitate the more efficient use of Members' resources. To preserve accountability for and transparency in the use of public funds, Legco Members would clarify in future exactly how the staff related expenses would be shared.
The Independent Commission has set aside Legco's other requests to link Members' monthly remuneration to a certain percentage of the salary range of the directorate officers in the civil service, and to introduce medical and retirement benefits. The Independent Commission maintains that substantial changes to the remuneration package of Legco Members, even if agreed, should only be implemented for the following rather than current legislative term.
"This long-held principle is needed to preserve the credibility of the remuneration system as well as that of the legislature," the spokesman said.
These outstanding requests thus set aside would be examined in the context of an overall review of the remuneration package for the fourth term Legco (2008-2012). It is due for completion around October, 2007.
The Independent Commission is chaired by Mr Vincent Cheng Hoi-chuen, and comprises Mr Chung Pui-lam, Professor Liu Pak-wai, Mr Tim Lui Tim-leung, Mr Ng Leung-sing and Mr Nicky Lo Kar-chun as members.
The Independent Commission twice met with the Legco Subcommittee on Members' Remuneration and Operating Expenses Reimbursement before finalising its report in August.
A copy of the Independent Commission's report is attached.
Ends/Thursday, October 19, 2006
Issued at HKT 16:02
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