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THURSDAY, NOVEMBER 6, 1986
TURNING TO THE SHORTCOMINGS OF THE FUND, MR HU DID NOT DENY THAT THE MOST IMPORTANT ONE BEING THAT IT WOULD INCREASE EMPLOYERS' FINANCIAL BURDENS AND WOULD REDUCE HONG KONG'S COMPETITIVENESS.
HE SAID HE AGREED THAT EMPLOYERS COULD ALSO BE UNDER PRESSURE TO INCREASE EMPLOYEES' SALARIES IN ORDER TO MAINTAIN THE LATTERS' TAKE-HOME PAY.
+ THE MAIN CRITERION FOR THE SUCCESS OR OTHERWISE OF THE SCHEME DOES NOT LIE IN THE SCHEME ITSELF, BUT IN THE CONTRIBUTION RATE, HE SAID.
MR HU SUGGESTED THE INITIAL RATE SHOULD BE LIMITED TO FIVE PER CENT EACH FROM EMPLOYER AND EMPLOYEE.
ON THE SUBJECT OF THE ADMINISTRATIVE COST, MR HU SAID IT SHOULD BE BORNE BY THE CONTRIBUTING PARTIES.
+1T COULD EITHER BE MANAGED BY A BODY STATUTORILY SET UP FOR THIS PURPOSE OR IT COULD BE ADMINISTERED BY A REPUTABLE PROFESSIONAL BODY AS AN AGENT FOR THE BEST BENEFIT OF ITS CONTRIBUTING MEMBERS,+ HE SAID.
TURNING TO THE PUBLIC HOUSING ISSUE, MR HU SAID HE WAS PLEASED TO NOTE THAT THE GOVERNMENT WAS REVIEWING THE HOME OWNERSHIP HOUSING PRODUCTION PROGRAMMES AND TO FORMULATE LONG-TERM HOUSING STRATEGIES FOR THE 1990'S AND BEYOND.
HE SAID HE BELIEVED THAT PUBLIC RESOURCES SHOULD BE USED TO COMPLEMENT THE PRIVATE SECTOR WHICH WOULD BE ENCOURAGED TO INCREASE THE OUTPUT TO MEET THE OVERALL DEMAND FOR HOUSING COLLECTIVELY.
HE SAID HONG KONG WAS ENTERING AN ERA OF FAIRLY EQUAL PROPORTION OF DIFFERENT INCOME GROUPS WHICH REQUIRED ACCOMMODATION IN THREE CATEGORIES OF HOUSING -- PUBLIC RENTAL HOUSING, HOME OWNERSHIP SCHEME (HOS) AND PUBLIC SECTOR PARTICIPATION SCHEME (PSPS) AND PRIVATE SECTOR ACCOMMODATION.
MR HU SAID LONG-TERM PLANNINGS SHOULD BE ADJUSTED ACCORDINGLY, AND PROPOSED THAT IMPROVEMENTS ON RENTAL HOUSING AND HOS-PSPS FLATS SHOULD AIM AT DURABILITY AND REDUCED MAINTENANCE.
NOTING THAT THE PRIVATE SECTOR COULD PRODUCE PSPS FLATS TO THE SAME STANDARD AS HOS FLATS CHEAPER AND FASTER WHILE GOVERNMENT COULD RECEIVE CONSIDERABLE PREMIUM ON PSPS BESIDES REDUCTION IN ADMINISTRATIVE COST, MR HU SAID THAT PSPS SHOULD REPLACE HOS GRADUALLY.
/AS MANUFACTURING