14
23.
There
are
of
a
practicability
illustration
also
serious doubts
about:
the
An
receivable purchase scheme.
given by the consultant shows a shortfall of
$230 million in a ten-year period for a receivable purchase
scheme which would cover 50% of a civil servant's entitlement
to pension gratuity. Such a scheme would not be attractive
to staff unless the
shortfall could be met by a
Government subsidy.
likely
It would be difficult to justify such a
subsidy from public funds.
24.
serious
The proposed exchange rate hedging scheme has
political implications and again cannot be
has serious
dollar.
In
supported. It could be construed as implying that Government
doubts over the future strength of the Hong Kong
addition, the costs to Government estimated at
$254 million over the first ten years, to provide a peg at a
rate of US$1.00: HK$7.75 for Civil Service pension payments,
would be difficult to justify.