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WEDNESDAY, APRIL 26, 1978

UNOFFICIALS COMMENT ON GREEN PAPER ON SOCIAL SECURITY

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AN AD HOC GROUP OF LEGISLATIVE COUNCIL UNOFFICIALS FORMED TO STUDY THE GREEN PAPER ON SOCIAL SECURITY DEVELOPMENT HAS ASKED THAT THE SICKNESS INJURY AND DEATH BENEFIT SCHEME BE INTRODUCED BY THE END OF 1980 FOR A TWO YEAR TRIAL PERIOD FOLLOWED BY A DECISION AS TO WHETHER IT SHOULD BE MADE COMPULSORY.

THE CONVENOR OF THE AD HOC GROUP, THE REV. THE HON. PATRICK MCGOVERN WHEN MOVING THE DEBATE ON THE GREEN PAPER IN

THE COUNCIL TODAY. POINTED OUT THAT THE UNOFFICIALS SUPPORTED THE SCHEME IN PRINCIPLE BUT DID NOT ACCEPT THE CONDITION STATED IN THE GREEN PAPER THAT THE GOVERNMENT WOULD FURTHER. INVESTIGATE THE SCHEME ONLY IF THERE IS A SUBSTANTIAL FAVOURABLE RESPONSE.

+AS A CONTRIBUTORY SCHEME IS A NEW IDEA IT WAS FELT THAT IT WAS ONLY BY INTRODUCING THE SCHEME. AT LEAST ON AN EXPERIMENTAL BASIS, THAT THE PUBLIC COULD EXPERIENCE FOR THEMSELVES THE BENEFITS INVOLVED AND THUS REACH A DECISION, HE SAID.

ON THE PROPOSED FEATURES OF THE SCHEME. THERE WERE SUGGESTIONS BY INDIVIDUAL UNOFFICIALS THAT THE AMOUNT OF CONTRIBUTION WAS TOO SMALL TO MAKE IT WORTHWHILE, THAT MORE ATTRACTION WAS NEEDED SUCH AS TAX INCENTIVES, EXTENDING BORROWINGS FROM THE FUND OF THE SCHEME TO NEEDS OTHER THAN HOME OWNERSHIP AND REQUIRING EMPLOYERS TO MAKE A HIGHER CONTRIBUTION.

THEY AGREED THAT ITS BENEFITS SHOULD BE DISCOUNTED IF THE NEED AROSE TO ASSESS FOR PUBLIC ASSISTANCE AND NOTED THAT THERE WAS A NEED TO CLARIFY THE PRACTICE OF THE SCHEME IN ITS RELATIONSHIP WITH THE PROVISIONS UNDER THE WORKMEN'S COMPENSATION ORDINANCE.

FATHER MCGOVERN REFERRED TO A MISCALCULATION IN THE GREEN PAPER ON SICKNESS BENEFIT WHERE AN EMPLOYEE'S FIRST MONTH AWAY FROM WORK WAS REGARDED AS BEING COVERED BY SICKNESS ALLOWANCE PAYABLE UNDER THE EMPLOYMENT ORDINANCE AND THUS NOT ELIGIBLE FOR BENEFITS UNDER THE SCHEME.

HE POINTED OUT THAT SICK PAY WAS ONLY 12 DAYS PER YEAR AND THE MAXIMUM OF 36 DAYS UNDER THE ORDINANCE WAS CULMULATIVE AND PRESUPPOSED A THREE YEAR PERIOD OF EMPLOYMENT.

THE UNOFFICIALS THEREFORE SUGGESTED THAT THE BENEFIT SHOULD BE PROVIDED FROM THE DAY WHEN THE EMPLOYEE CEASES TO BE ELIGIBLE FOR PAID SICK LEAVE UNDER THE ORDINANCE, UP TO A MAXIMUM OF THREE MONTHS.

ALSO, WHILE THE AMOUNT OF SICKNESS BENEFIT SUGGESTED IN THE GREEN PAPER WAS ABOUT HALF NORMAL PAY", SICKNESS PAY UNDER THE EMPLOYMENT ORDINANCE WAS TWO-THIRDS OF NORMAL WAGES.

FATHER MCGOVERN NOTED PERSONALLY THAT HE COULD NOT SEE

ANY WAY IN WHICH LEGISLATION COULD BE ENFORCED WHICH WOULD PREVENT DISCRIMINATION AGAINST A WORKER WHO CHANGES TO A JCB UNDER ANOTHER EMPLOYER WHO DOES NOT APPROVE OF THE SCHEME.

/AS PREDICTED

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