3
-
WEDNESDAY, AUGUST 2, 1978
'LTHOUGH THE REPORT CAME OUT IN FAVOUR OF A PENSION INSURANCE SCAL, HE FOUND THAT ITS ARGUMENTS IN FAVOUR OF A PROVIDENT FUND SCHEME WERE MORE COGENT THAN ITS ARGUMENTS AGAINST IT.
HE ALSO AGREED WITH THE MAIN THESIS OF THE REPORT, THAT THE PROPORTION OF OLD PEOPLE IN THE POPULATION WILL INCREASE SIGNIFICANTLY YEAR BY YEAR AND THAT THE TIME HAS COME WHEN THE COMMUNITY AS A WHOLE SHOULD BE PERSUADED AND, IF NECESSARY COMPELLED TO BEGIN ASSISTING ITSELF IN MAKING PROVISION FOR ITS OWN OLD AGE.+
FATHER MCGOVERN POINTED OUT THAT THE REFERENCE TO THE TIME HAS COME' IS NOW OVER ELEVEN YEARS AGO. AGED WORKERS OF THAT TIME ARE NOW ELEVEN YEARS NEARER THE DAY
+THE YOUNG AND MIDDLE WHEN THEY WILL BE DEPENDENT ON THE COMMUNITY FOR THEIR LIVELIHOOD AND DRAWING ON SOME OTHER FUNDS INSTEAD OF THE FUNDS TO WHICH THEY AND THEIR EMPLOYERS COULD HAVE BEEN CONTRIBUTING FOR THE PAST 11 YEARS.
MR. WONG LAM SAID THAT WITHOUT A CENTRAL PROVIDENT FUND AND WITH ONLY LIMITED ASSISTANCE UNDER THE SOCIAL SECURITY SYSTEM FOR THOSE WHO RETIRE, RETIREMENT BENEFITS CONSTITUTE THE MOST IMPORTANT SECURITY FOR THE OLD AGE OF MOST EMPLOYEES.
IT IS A SERIOUS BLOW TO THESE EMPLOYEES IF, FOR SOME REASON WHICH DOES NOT CONCERN THEM, PART OF THEIR RETIREMENT BENEFITS IS TAKEN BY THE GOVERNMENT AS TAX.
MR. WONG THOUGHT THE TWO SUGGESTED TYPES OF APPROVED RETIREMENT SCHEMES COULD BE ADOPTED IN THE SAME COMPANY. IF THE EMPLOYEES HAVE NO CONFIDENCE IN THE COMPANY'S OWN SCHEME, THEY CAN OPT TO JOIN A SCHEME ADMINISTERED BY A TRUSTEE CORPORATION.
J
+ IN ANY CASE, THE GOVERNMENT SHOULD GRANT TAX EXEMPTION TO THESE TWO DIFFERENT TYPES OF SCHEME, THIS LONG-TERM BENEFIT OF THE WORKING CLASS AND TO PROVIDE
IN ORDER TO PROTECT THEM WITH BETTER SECURITY, HE SAID.
MR. JAMES WU SAID IN THE INTEREST OF SOCIAL STABILITY AND PROGRESS, THE MOVES BY MOST CHINESE EMPLOYERS IN SMALL BUSINESS TO GIVE RETIREMENT BENEFITS, NORMALLY IN A LUMP SUM, UPON THE RETIREMENT OF AN EMPLOYEE SHOULD BE ENCOURAGED.
HE AGREED THAT THE GOVERNMENT SHOULD ELIMINATE THE INJUSTICE TO EMPLOYEES WHO RECEIVE RETIREMENT BENEFITS UNDER NON-APPROVED SCHEMES. HE SAID FOR REASONS THAT ARE EVIDENT, SMALL EMPLOYERS WHO CONSTITUTE OVER 90 PER CENT OF EMPLOYERS IN HONG KONG, ARE NORMALLY SHORT IN CASH CAPITAL AND PERSONNEL MANAGEMENT CONCEPTS AND WERE PARTICULARLY SCEPTICAL OF GOVERNMENT INVOLVEMENT.
+ THE NECESSITY TO HAVE SUMS OF MONEY TIED UP, COUPLED WITH BUREAUCRATIC FORMALITY AND INFLEXIBILITY HAVE DETERRED THE SMALL BUSINESSES TO MAKE A MOVE TOWARDS SCHEMES THAT COULD MEET GOVERNMENT APPROVAL,+ HE ADDED.
14.....