10
WEDNESDAY, MAY 13, 1987
MR YAXLEY ALSO NOTED THAT THE CENTRAL PROVIDENT FUND COULD HAVE A REDISTRIBUTIVE EFFECT ON THE FLOWS OF FUNDS BETWEEN FINANCIAL INSTITUTIONS.
AS CONTRIBUTORS TO THE CENTRAL PROVIDENT FUND WOULD MOSTLY BE THE SMALL DEPOSITORS WHO CURRENTLY PUT THEIR SAVINGS IN BANKS MR YAXLEY SAID UNLESS EFFICIENT RECYCLING PROCEDURES WERE DEVELOPED, THIS COULD CAUSE PROBLEMS FOR THE BANKING SECTOR, ESPECIALLY FOR THOSE SMALLER LOCAL BANKS WHICH RELIED HEAVILY ON LOCAL DEPOSITS.
ON THE SUGGESTION OF THE ESTABLISHMENT OF A NUMBER OF APPROVED PRIVATE FUNDS AS AN ALTERNATIVE TO A CENTRALISED PROVIDENT FUND SCHEME, MR YAXLEY SAID THAT MOST OF THE PROBLEMS HE HAD IDENTIFIED IN RELATION TO THE ECONOMY AS A WHOLE AND TO THE IMPACT ON EMPLOYERS AND EMPLOYEES WOULD STILL APPLY, ALBEIT AT A REDUCED SCALE.
MR YAXLEY CONCLUDED THAT THE GOVERNMENT AND THE COMMUNITY NEEDED TO BE SATISFIED THAT THE POTENTIAL BENEFITS OF A FUND JUSTIFIED THE RISKS TO HONG KONG'S INTERNATIONAL COMPETITIVENESS AND TO THE ORDERLY PROGRESSION OF HONG KONG'S ECONOMY.
LET US SHOW FORESIGHT NOT ONLY IN RESPECT OF THE SOCIAL WELL-BEING OF INDIVIDUALS BUT ALSO IN RESPECT OF OUR COLLECTIVE ECONOMIC WELL-BEING AS A COMMUNITY, HE SAID.
PROPOSAL FOR FUND DERIVES FROM CONCERN
*****
THE PROPOSAL FOR A CENTRAL PROVIDENT FUND DERIVED FROM A VERY PROPER CONCERN FOR THE WELFARE OF ELDERLY PEOPLE IN HONG KONG, AND THE NEED TO ENSURE THAT AFTER THEIR RETIREMENT THEY HAD ADEQUATE FUNDS TO BE ABLE TO MAINTAIN A DECENT STANDARD OF LIVING, THE SECRETARY FOR HEALTH AND WELFARE, THE HON JOHN CHAMBERS, SAID TODAY (WEDNESDAY).
WINDING UP THE DEBATE ON CENTRAL PROVIDENT FUND IN THE LEGISLATIVE COUNCIL, MR CHAMBERS SAID, +MOST ADVANCED COUNTRIES HAVE SOME FORM OF CONTRIBUTORY SOCIAL SECURITY OR SOCIAL INSURANCE SYSTEM AND IT SEEMS TO ME TO BE QUITE APPROPRIATE THAT HONG KONG SHOULD CONSIDER, AT THIS STAGE IN ITS DEVELOPMENT, WHETHER WE NEED TO DEVELOP SUCH A SYSTEM HERE.+
/MR CHAMBERS