Three months ago, Financial Secretary John Tsang Chun-wah shrugged off a call for the chief executive and his cabinet to take a 20 per cent pay cut as a sign of solidarity in these perilous economic times.
Responding to a student's question at a pre-budget consultation session, he said the reduction would help little to bolster the economy.
At a time of fear about the impact of the global economic downturn, the government faced enormous pressure to deliver economic-relief measures.
Public discussion was, understandably, focused on job creation and financial relief such as waivers of rates and other fees. There was little political pressure for cabinet members to dip into their own pockets.
Not surprisingly, the ruling team had not given serious consideration to the idea. To them, there was simply no strong case for a pay cut.
The issue, however, took an interesting turn last week when an annual pay trend survey showed that private-sector salaries at all levels had fallen in the past 12 months. Top earners in the sector saw their salaries drop almost 5 per cent. The survey forms an integral part of the public-sector pay- adjustment mechanism.
