HONG KONG LEGISLATIVE COUNCIL - 25 May 1988
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euraging success and all the available evidence suggests that the incidence of the disease is likely to continue to fall.
Even with the reduction in levy we are likely to have ample funds for any worthwhile preventive measures we can devise. However, if our forecasts do turn out to be too optimistic, I do not myself see any problem in reviewing the levy and, if necessary, increasing it later. The fact that we have been able to show that levies can go down as well as up actually makes employers more willing to pay rather than less.
This is because employer resistance to levies is largely due to fears of the so called 'ratchet effect', the fear that levies can only go up, never down. By showing that the board and the Government are genuinely neutral and objective on this issue we have greatly reduced employer resistance to the scheme. Indeed the construction industry is now very supportive and has itself taken the initiative in recommending expenditure from the fund on preventive measures. This positive attitude on the part of the industry is very encouraging.
I therefore have no hesitation in recommending to Members the cut proposed in the present resolution.
Question put and agreed to.
First Reading of Bills
PNEUMOCONIOSIS (COMPENSATION) (AMENDMENT) BILL 1988
ROAD TRAFFIC (AMENDMENT) BILL 1988
Bills read the First time and ordered to be set down for Second Reading pursuant to Standing Order 41(3).
PNEUMOCONIOSIS (COMPENSATION) (AMENDMENT) BILL 1988
THE SECRETARY FOR EDUCATION AND MANPOWER moved the Second Reading of: 'A Bill to amend the Pneumoconiosis (Compensation) Ordinance'.
He said: Sir, I move that the Pneumoconiosis (Compensation) (Amendment) Bill 1988 be read a Second time.
A few minutes ago I moved a resolution to reduce the levy which finances the Pneumoconiosis Compensation Fund. I am glad now to introduce this Bill, which provides that the Pneumoconiosis Compensation Fund Board may make advance payments of up to $20,000 to victims of pneumoconiosis or their dependants. The board's power to make such payments is at present not expressly stated, and section 17(4) of the Ordinance in any case limits any such