THURSDAY, MARCH 26, 1981

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CALL TO INTRODUCE CONTRIBUTORY INSURANCE

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THE GOVERNMENT HAS BEEN CALLED UPON TO MAKE AN EARLY DECISION ON THE INTRODUCTION OF A CONTRIBUTORY SICKNESS, INJURY AND DEATH BENEFIT SCHEME.

DR THE HON HO KAM-FAI TOLD THE LEGISLATIVE COUNCIL TODAY (THURSDAY) THAT HE BELIEVED THE SCHEME, PROPOSED IN THE 1977 GREEN PAPER ENTITLED +HELP FOR THOSE LEAST ABLE TO HELP THEMSELVES: A PROGRAMME OF SOCIAL SECURITY DEVELOPMENT+, WOULD IN THE LONG TERM PROVIDE AN EFFECTIVE AND EQUITABLE METHOD OF PROVIDING INCOME SECURITY FOR THOSE UNEMPLOYED.

+THE INCREASE IN THE NUMBER OF INDUSTRIAL AND OCCUPATIONAL ACCIDENTS IN RECENT YEARS WHICH TOTALLED MORE THAN 70 000 CASES IN 1980, COUPLED WITH THE CONSIDERABLE STRESSES AND STRAINS AND ILLNESSES ASSOCIATED WITH URBAN CITY LIFE WOULD REDUCE THE NUMBER OF WORKING DAYS FOR THE AVERAGE WORKERS.

+ IN VIEW OF SUCH FACTORS AND THAT THE GOVERNMENT HAS TAKEN A RATHER LONG TIME TO CONSIDER THE SCHEME, I THEREFORE URGE THAT A DECISION BE MADE AS SOON AS PRACTICABLE, HE SAID.

IN THE INTER IM, DR HO SAID, THE GOVERNMENT SHOULD CONSIDER A SCHEME TO PROVIDE SOME RELIEF FOR THOSE PERSONS WHO HAD BEEN FORCED TO BE ABSENT FROM WORK DUE TO UNEMPLOYMENT OR DISABLEMENT BUT WERE NOT ELIGIBLE FOR PUBLIC ASSISTANCE.

WHILE AFFIRMING THE PUBLIC ASSISTANCE SCHEME AS THE MAINSTAY OF HONG KONG'S SOCIAL SECURITY SYSTEM, HE PROPOSED THAT AN UNEMPLOYMENT ALLOWANCE, SIMILAR TO THE DISABILITY OR OLD AGE ALLOWANCE, BE IMPLEMENTED.

THE UNEMPLOYMENT ALLOWANCE, HE EXPLAINED, SHOULD BE BASED ON NEED ESTABLISHED BY REFERENCE TO THE CIRCUMSTANCES OF THE INDIVIDUAL, AND NOT BY REFERENCE OF LOW INCOME.

A FLAT-RATE, NON-MEANS-TESTED ALLOWANCE EQUIVALENT TO THE BASIC PUBLIC ASSISTANCE RATE FOR A SINGLE PERSON COULD BE MADE PAYABLE TO AN INVOLUNTARILY UNEMPLOYED PERSON, SUBJECT TO CERTAIN CONDITIONS BEING MET.

AS THE LEVEL OF THE ALLOWANCE IS RATHER LOW, DR HO THOUGHT IT WOULD NOT HAVE AN ADVERSE EFFECT ON THE INDIVIDUAL'S WORK

INCENTIVE.

+ THE PROVISION OF SUCH AN UNEMPLOYMENT ALLOWANCE WILL NO DOUBT PROVIDE A WELCOME RELIEF TO HONG KONG'S WAGE EARNERS.

+ IT WILL NOT ONLY ALLEVIATE THE WORKERS' FINANCIAL BURDEN ASSOCIATED WITH THE COSTS OF LIVING DEPRESSED BY LOSS OF INCOME AR IS ING FROM UNEMPLOYMENT. BUT WILL ALSO BE A CRUCIAL STABILIZING FORCE FOR THE HONG KONG COMMUNITY IN TIMES OF CRISIS AND ECONOMIC RECESSION, + HE SAID.

DR HO ALSO SPOKE EXTENSIVELY ON VOCATIONAL TRAINING AND JOB PLACEMENT SERVICES FOR THE MENTALLY RETARDED.

I

/WE DEJECT

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