to
staff unless the likely
∞
shortfall
could
be
met by a
Government subsidy.
It would be politically difficult, if
not impossible, to justify such a subsidy from public funds.
20.
serious
supported.
has serious
The proposed exchange rate hedging scheme has
political implications and again cannot be
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 publicly.
dollar.
In
Partial Funding
21.
and
This
maintaining
proposal
originally
involved setting aside
а separate reserve fund sufficient at any
time to meet estimated pension payments for the next five
It would only be used if recurrent revenue were
years.
insufficient to cover pension payments.
22.
The sum involved in pursuing this proposal is
A 5-year roll forward reserve fund would
considerable.
require an initial sum of $15 billion. We have difficulties
in supporting
problems in
a 5-year roll forward reserve fund because of
finding a sum of this magnitude and also because