Central Provident Fund

Z.

Sir, I must now turn to the ever popular subject of

the CPF, which, like Alan Tam never seems to lose its

se

>

appeal.

S.cap.

s.cap.

ہوتا

I must confess that I could

could not always follow

the logic of the

put arguments

forward last week in

support of it. Mr. Hui urged us to think of the average

worker, who could not afford to save for a rainy day and

who therefore needed the CPF. But why should anyone who

cannot afford to save welcome a compulsory deduction

from his

confident,

Hui

was also

to

Mr. wage-packet?

despite recent events, that a CPF would not cause any

problems in the financial markets and would be sure

provide a positive real rate of return. He seems to me

to be over optimistic. Unless the fund were very

conservatively managed, a reduction

reduction in its capital value

seems unavoidable when ever there is a general downturn

in the financial sector.

со

Sc

Sc 14

Mr. Hu thought

the majority of

-

and I agree with him

-

that

workers want to be self-reliant.

However, I cannot see how forced savings lead to

self-reliance,

Mrs. Tam quite rightly pointed out that

but

a CRE would not provide a free lunch;

I suspect

that, behind many of the calls for a

calls for a CPF, there lurks

hope that somehow it would provide everyone with a real

but in fact Mr. TAM Yiu-chung and other supporters of the CPF ask suggestion on the scheme should be subsidised;

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