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(a) The early population of Hong Kong was largely made up of refugees from China, who came to make a living. When they first arrived, they were young and strong. For the past few decades, they have worked very hard and contributed to the prosperity of Hong Kong. As they are becoming old, Hong Kong is now faced with an aging population. From 1981 to 1986, there has been a 35 per cent increase of people over 65. The Council for Social Services estimates that between 1981 and 2000, the number of old people will increase to 730 000, which will be an increase of 221 per cent. The expenditure on old age security will increase to $7.8 billion, an increase of 543 per cent. At present, expenditure on old age security takes up about half of the total expenditure on social welfare. The burden on the government in this area is not light indeed. If Central Provident Funds jointly contributed to by employers and employees are set up, there will be more security for people's living after retirement and the burden on the government will be lightened.
(b) As mentioned earlier on, a sound social security system can enhance people's sense of belonging to the firms or organizations they work for. As the economy of Hong Kong is now recovering from the disturbance caused by the 1997 issue, the long-term plans and far-sighted policies of the government, as well as the long-term investments of businessmen are a reflection of their confidence in the future of Hong Kong. The setting up of Central Provident Funds will be another proof of such confidence and of the trust in the promises made by China and Britain. People will be happy to regard Hong Kong as their home and contribute to it. We must not take lightly the significance of a centrally coordinated social security scheme in which everyone can participate.
(c) From the economic angle, the capital accumulated in Central Provident Funds can be invested in capital works to promote social development, or used to stabilize the money market to positively help Hong Kong develop into an international financial centre. Some consider that it will be very difficult to manage such a large sum of money and wrong utilizations will cause disturbances and fluctuations in the market. According to an opinion paper signed by 58 organizations, if there are 1 500 000 people participating in the contribution scheme, some $5 billion will be accumulated every year. This is about 1 per cent of the approximately $600 billion total market value of the financial assets and stocks in Hong Kong and therefore will not be of much influence. Furthermore, with capable persons in the monetary sector and experience in managing tremendous funds, Hong Kong will surely be able to manage Central Provident Funds with ease.
(d) As to the argument that devaluation will cause contributors to suffer losses, the issue is a relatively technical one and calls for data reference. According to the information provided by Mr. C. C. WUN, a lecturer at the Department of Business Administration in Baptist College, the rate of growth or yield of stocks, local or overseas, is generally higher than that of inflation. With proper management and investment, the problem of devaluation will not be difficult to solve.
(e) Finally, whether we should enact legislation to stipulate for contributions or allow voluntary participation, and whether Provident Funds should be managed by the central government or individual firms, I am of the view that a centrally coordinated compulsory scheme will give fuller security, and save the administrative work incurred when a worker changes job. A worker will be safeguarded even if he changes job. As mentioned above, the setting up of Central Provident Funds is a social policy. Besides giving security to those who have retired, it is significant in that participation and taking up of responsibility by each and every one will foster eagerness to strive for the prosperity of Hong Kong. This is an important basis for social development.
Secondly, about the capital works of the Council, I hope the Council in future will consult the relevant departments in the district when it plans new facilities so as to avoid duplication of facilities and waste of public money.
MR. RONNIE M. C. WONG (in Cantonese): Mr. Chairman, as the Statement of Aims for 1987 has been studied in detail by the various Select Committees and scrutinized by the Standing Committee of the whole Council, I fully support the motion.
Taking the opportunity of today's meeting, I would like to air my views on three areas: environmental protection, sports and the political system.
As regards the preservation of and cleansing work on beaches mentioned in the Statement of Aims, I think cooperation with the Environmental Protection Department is of utmost importance. While beach facilities which are out of order can be repaired and rubbish accumulated collected at any time, once water turns bad, there is no remedy for it. As the sea waters around Hong Kong are already seriously polluted, if the situation is not brought under control, the polluted area will in a few years' time extend to beaches south of the Hong Kong Island. By that time, marine products from Hong Kong waters will no longer be edible and beaches no longer suited for swimming. The whole of Hong Kong will be surrounded by waters of a different colour and odour. I hope the departments concerned such as the Environmental Protection Department, Marine Department, Agriculture and Fisheries Department and the USD will step up cooperation and formulate a comprehensive plan for environmental protection, to be fully implemented. The Legislature should accordingly come up with suitable legislation.
The learn-to-swim classes organized by the Council in summer, in addition to teaching swimming techniques, enhance the public's awareness of water safety. I think the Education Department can participate in this area by, for example, making swimming and physical education compulsory subjects in primary schools. Speaking about physical education, I think it should be comprehensive,
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