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FRIDAY, DECEMBER 2, 1977
SICKNESS, INJURY AND DEATH BENEFIT SCHEME MAY PROVIDE INCENTIVE FOR PRIVATE SECTOR
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THE DEPUTY DIRECTOR OF SOCIAL WELFARE, MR. JIMMY SWEETMAN SAID TODAY THE GOVERNMENTS PROPOSED LEAD IN INTRODUCING THE SICKNESS, INJURY AND DEATH BENEFIT SCHEME AND THE PROVISION FOR CONTRACTING OUT OF IT MAY PROVIDE THE INCENTIVE FOR PRIVATE INSURANCE COMPANIES TO COME UP WITH COMPETITIVE SCHEMES.
SPEAKING AT THE LUNCHEON MEETING OF THE ROTARY CLUB OF KOWLOON NORTH, MR. SWEETMAN SAID THE INTRODUCTION OF SUCH A +SEMI-VOLUNTARY+ CONTRIBUTORY SCHEME WAS ONE OF THE PROPOSALS DRAWN UP BY THE GOVERNMENT IN THE GREEN PAPER ON SOCIAL SECURITY DEVELOPMENT PUBLISHED RECENTLY.
HE NOTED THAT THE REASON BEHIND THE INTRODUCTION OF THE +CONTRIBUTORY+ FACTOR IS NOT ONLY TO PROTECT A CONTRIBUTOR FROM SUFFERING A SUDDEN DRAIN ON HIS SAVINGS OR HIS WORKMEN'S COMPENSATION IN TIMES OF PROLONGED SICKNESS OR INJURY, BUT ALSO TO MAKE BENEFITS PROPORTIONAL TO THE RATE OF AN INDIVIDUAL'S CONTRIBUTIONS.
J
+ IF WE MAINTAIN THE SAFETY NET PRINCIPLE OF PUBLIC RESPONSIBILITY FOR PREVENTING PEOPLE FROM FALLING BELOW SUBSISTENCE LEVEL, THE MOST WE CAN DO OUTSIDE THIS PRINCIPLE IS TO HAVE A SCHEME OF INDIVIDUAL CONTRIBUTIONS THAT WILL ATTRACT THOSE WHO WANT TO PROTECT THEIR FAMILIES FROM A DROP TO THAT LEVEL, AND TO RECEIVE BENEFITS BEARING A REALISTIC RELATIONSHIP TO THE IR PREVIOUS EARNINGS,+ HE SAID.
EXPLAINING THE PROS AND CONS OF A CONTRIBUTORY SCHEME,
MR. SWEETMAN SAID SUCH A SCHEME WOULD NEED FIRSTLY LARGE OFFICES AND COMPARATIVELY HIGHLY PAID STAFF TO OPERATE AND HONG KONG IS PARTICULARLY EXPENSIVE IN BOTH SPACE AND SALARY LEVELS FOR SUCH WORK.
+SECONDLY, SOPHISTICATED CONTROL MEASURES HAVE TO BE INTRODUCED AND ENFORCED FOR COLLECTING DUES AND COERCING THOSE RELUCTANT TO CONTRIBUTE - WHETHER THEY BE EMPLOYERS OR EMPLOYEES.
+THIRDLY, SUCH SCHEMES ENTAIL COLLECTING MONEY WITH ONE HAND AND PAYING IT OUT WITH THE OTHER AFTER A PROPORTION HAS SLIPPED INTO THE BUREAUCRAT'S POCKETS TO KEEP HIM ALIVE AND IN BUSINESS.+
HOWEVER, HE POINTED OUT THAT ANY SCHEME WHICH INVOLVED THE RECIPIENT GETTING MONEY OBTAINED FROM TAXES PAID BY SOMEBODY ELSE WOULD SURELY BE MORE EFFICIENTLY RUN IF IT WERE FINANCED OUT OF GENERAL REVENUE.
ON WHETHER THE SICKNESS, INJURY AND DEATH BENEFIT SCHEME SHOULD BE VOLUNTARY OR COMPULSORY, MR. SWEETMAN SAID: IF VOLUNTARY, IT MAY TEND TO ATTRACT MERELY THE SICKLY AND THE PRUDENT, WILLING ONES, WHO CAN INSIST ON JOINING - UNLESS THEY ARE SEDUCED BY OFFERS OF BETTER BENEFITS UNDER A COMPANY SCHEME, AND A VOLUNTARY SCHEME WOULD ENTAIL FAR FEWER PROBLEMS OF INSPECTION AND ENFORCEMENT THAN WOULD A COMPULSORY SCHEME.+
/HOWEVER, HE