WEDNESDAY, MAY 13, 1987
13
CALL TO THINK CAREFULLY ON CENTRAL PROVIDENT FUND
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HONG KONG MUST THINK VERY CAREFULLY BEFORE EMBARKING ON A COMPULSORY PROVIDENT FUND SCHEME, THE SECRETARY FOR EDUCATION AND MANPOWER, THE HON RON BRIDGE, SAID TODAY (WEDNESDAY).
WINDING UP THE ADJOURNMENT DEBATE ON CENTRAL PROVIDENT FUND MR BRIDGE SAID IF COMPULSION CARRIED A DANGER OF ECONOMIC UPSETS, AND IF IT DID NOT IN ANY CASE ADDRESS THE PROBLEM OF SECURITY IN OLD AGE FOR THOSE WHO WERE IN MOST NEED OF PROTECTION, THEN IT WAS NOT EASY TO SEE THE JUSTIFICATION FOR COMPELLING THE ENTIRE ECONOMICALLY ACTIVE POPULATION TO CONTRIBUTION TO A PROVIDENT FUND.
+IT IS, AFTER ALL, VERY MUCH EASIER TO SET UP SUCH A SCHEME THAN TO WIND IT DOWN ONCE IT HAS STARTED. ALL THE MORE REASON TO BE QUITE CLEAR ABOUT THE ALTERNATIVES BEFORE A DECISION IS TAKEN,+ HE SAID.
HE SAID BOTH THE CENTRALISED AND DECENTRALISED VERSIONS OF PROVIDENT FUND SCHEME BROUGHT BACK THE SAME QUESTION OF PRINCIPLE, SHOULD IT BE COMPULSORY TO CONTRIBUTE TO A PROVIDENT FUND SCHEME OR SHOULD IT NOT.
+ BUT THIS IS NOT THE ONLY QUESTION AT ISSUE,+ HE SAID.
HE SAID A FUNDAMENTAL CONCERN WHICH HAD UNDERLAIN THE WHOLE PROVIDENT FUND DEBATE OVER THE PAST YEAR OR TWO WAS THE PROBLEM OF FINANCIAL SECURITY IN OLD AGE.
COMMENTING ON THE ARGUMENTS BY THE PROPONENTS OF COMPULSORY PROVIDENT FUND SCHEMES, MR BRIDGE SAID IT WAS CERTAINLY TRUE THAT THE POPULATION WAS AGING AND THAT THE TOTAL NUMBER OF OLD PEOPLE WAS GROWING BUT THE PICTURE WAS NOT AS BLEAK AS THIS IMPLIED.
+PEOPLE TEND TO REMAIN FIT AND ACTIVE TO A MORE ADVANCED AGE AND ARE WORKING LONGER,+ HE SAID.
+ THE PROPORTION OF OLD PEOPLE DRAWING PUBLIC ASSISTANCE HAS REMAINED SMALL AND THERE IS NO EVIDENCE AT PRESENT THAT FAMILIES ARE EITHER LESS ABLE OR LESS WILLING TO SUPPORT THEIR ELDERLY MEMBERS.+
HE SAID THAT BY STATING THIS OUT, IT WAS NOT TO DISMISS THE PROBLEM OUT OF HAND.
HE SAID IT REMAINED TRUE THAT THERE WAS WIDESPREAD CONCERN ABOUT FINANCIAL SECURITY IN OLD AGE AND THE QUESTION OF WHAT COULD AND SHOULD BE DONE ABOUT THIS HAD TO BE ADDRESSED.
THE SETTING UP