THURSDAY, MARCH 29, 1979
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+THERE ARE ABOUT 200 TRADE CONSUMERS IN THIS CATEGORY OUT OF 85,000, + HE SAID. IT DOES MAKE GOOD BUSINESS SENSE TO INCREASE CHARGES IF NECESSARY, AT LEAST THE INCREASE MUST BE FAIR.+
HE WONDERED WHETHER THE GOVERNMENT ONLY CARES FOR LARGE MANUFACTURERS AND LEAVES THE OTHERS ON THE IR OWN.
HE SAID WHETHER AN INCREASE IS JUSTIFIED AT THIS TIME +WHILE THE GOVERNMENT MAINTAINS A HEALTHY SURPLUS AND WHEN THE MANUFACTURING SECTOR NEEDS EVERY BIT OF HELP IT CAN GET IN COST REDUCTION IN ORDER TO COMPETE, IS FOR THE GOVERNMENT TO DECIDE.
NEED FOR LONG-TERM INCOME PROTECTION SCHEME FOR RETIRED PEOPLE
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DR. THE HON. HO KAM-FAI SPOKE ON THE NEED FOR A LONG-TERM INCOME PROTECTION SCHEME FOR RETIRED PEOPLE DURING THE RESUMED BUDGET DEBATE IN THE LEGISLATIVE COUNCIL TODAY (THURSDAY).
DR. HO POINTED OUT THAT THE SOCIAL SECURITY SCHEMES AT PRESENT ADMINISTERED BY THE SOCIAL WELFARE DEPARTMENT ARE MEANT TO PROVIDE AN INCOME ALTERNATIVE WHEN A PERSON'S EMPLOYMENT IS DISRUPTED BY, FOR EXAMPLE, DISABLEMENT OR ACCIDENT.
THE SUPPLEMENTARY NATURE OF THESE SCHEMES MAKES THEM UNSUITABLE FOR THOSE ABSENT FROM WORK FOR A LONG TIME BECAUSE OF INVALIDITY OR RETIREMENT, HE SAID.
+PUBLIC ASSISTANCE IS NOT A SATISFACTORY FORM OF INCOME PROTECTION BECAUSE OF ITS REQUIREMENT FOR A MEANS TEST AND ITS LOW LEVEL OF PAYMENT, HE ADDED.
J
DR. HO SAID THE NUMBER OF OLD PEOPLE AGED 60 AND OVER, AT 400,000, WAS NINE PER CENT OF THE TOTAL POPULATION IN 1977 AND WILL INCREASE TO ABOUT 10.6 PER CENT IN 1986.
THOUGH MANY OF THEM CONTINUE TO WORK AFTER RETIREMENT, MOSTLY PART-TIME, THE MAJORITY ARE IN THE LOWER LEVELS OF EMPLOYMENT.
THE GOVERNMENT'S HEAVY FINANCIAL BURDEN CAN BE SEEN BY ASSUMING THAT HALF OF THE $405 MILLION EARMARKED FOR PUBLIC ASSISTANCE AND SPECIAL NEEDS ALLOWANCE IN THE COMING YEAR WILL BE SPENT AS INCOME PAYMENTS FOR THE ELDERLY.
HE THEREFORE SUGGESTED INTRODUCTION OF A SCHEME WHEREBY INDIVIDUALS CAN CONTRIBUTE PARTIALLY TOWARD THE IR FUTURE ECONOMIC SECURITY, WITH PUBLIC ASSISTANCE CONTINUING TO FUNCTION AS A SAFETY-NET.
THIS CAN BE BY WAY OF A PROVIDENT FUND SCHEME OR A PENSJON SCHEME. THE FIRST IS QUITE EASY AND SIMPLE TO ADMINISTER BUT HAS DRAWBACKS IN THAT THE LUMP-SUM GRANT MAY BE QUITE SMALL AND ITS VALUE MAY WELL BE ERODED BY INFLATION, HE SAID.
A PENSION SCHEME, OPERATED ON SOCIAL INSURANCE PRINCIPLES, WITH POSSIBLE GOVERNMENT PARTICIPATION BY ADDING A SPECIFIED PERCENTAGE TO THE CONTRIBUTIONS FROM THE EMPLOYER AND EMPLOYEE, OR THROUGH BEARING THE ADMINISTRATIVE COSTS, WOULD HAVE MORE ADVANTAGES.