(English translation prepared by
the Legislative Council Secretariat
for Members' reference only)

20 September 1999

Dr Hon LEONG Che-hung, JP
Chairman
House Committee


Dear Dr LEONG,

In her letter (LC Paper No. AS390/98-99) dated 19 August this year, the Secretary for the Treasury pointed out that she would, sometime in September, make adjustments to LegCo Members' monthly remuneration and operating expenses reimbursements in accordance with the movement of the Heng Seng Consumer Price Index and under the authority delegated to her by the Finance Committee in 1995. In view of the prevailing trend of deflation, it is believed that a reduction in the rates of remuneration and operating expenses reimbursements is highly probable.

I am particularly concerned that a reduction in the level of "operating expenses reimbursements" for Members means the amount used for employing staff will be cut down. To make ends meet, Members will be forced to consider cutting down the remuneration for their assistants. In my opinion, it is very unfair to both Members and the assistants in question if Members are forced to be "unscrupulous employers". In this connection, I hope that LegCo Members can collectively reflect the situation to the Administration and call on it to adopt measures to ensure that the level of "operating expenses reimbursements" for Members will not be reduced.

I request this issue be discussed at the House Committee meeting on 24 September. Thank you.

LEUNG Yiu-chung

c.c. Secretary for the Treasury


D5/C2616.DOC/J