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WEDNESDAY, MAY 13, 1987
SUPPORT FOR PRIVATE PROVIDENT FUND SYSTEM
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THE GOVERNMENT SHOULD LAUNCH A WIDESPREAD CAMPAIGN TO PROMOTE THE FURTHER DEVELOPMENT OF PRIVATE PROVIDENT AND RETIREMENT SCHEMES THE HON HILTON CHEONG-LEEN SAID TODAY (WEDNESDAY) IN THE LEGISLATIVE COUNCIL DURING THE ADJOURNMENT DEBATE ON CENTRAL PROVIDENT FUND.
HE SAID HE HOPED THAT IN TWO TO THREE YEARS, LEGISLATION COULD BE INTRODUCED TO MAKE THE FUND COMPULSORY SHOULD THE GOVERNMENT STUDY SHOW THAT IT WOULD BE PRACTICAL AND DESIRABLE TO INTRODUCE SUCH LEGISLATION.
IN THE LIGHT OF ALL THE INFORMATION HE HAD STUDIED SO FAR MR CHEONG-LEEN SAID HE DID NOT BELIEVE THAT A FUND SYSTEM WAS SUITABLE TO HONG KONG'S FREE ENTERPRISE CONDITIONS WHERE THE TERRITORY'S ECONOMY MUST BE FLEXIBLE, DYNAMIC AND COMPETITIVE WITH THE REST OF THE WORLD.
HE SAID THAT THE QUESTION OF SETTING UP OF A FUND SHOULD NOT BE APPROACHED ON A PIECEMEAL BASIS, BUT WITHIN THE BROADER FRAMEWORK OF THE EXISTING TYPES OF SOCIAL SECURITY PROVISION SO AS TO PROGRESSIVELY BUILD UP FOR HONG KONG PEOPLE THE HIGHEST LEVEL OF SOCIAL SECURITY NETWORK.
MR CHEONG-LEEN SAID HE BELIEVED THAT PROVISION FOR OLD AGE OR RETIREMENT WAS AN IMPORTANT FACTOR TO BE CONSIDERED, NOT ONLY FOR THOSE IN THE LOWER INCOME BRACKETS, BUT ALSO FOR THE WHITE-COLLAR OR SANDWICH GROUP.
HE SAID THE EXISTING FRAMEWORK OF SOCIAL SECURITY PROVISIONS SHOULD BE REVIEWED WITH RELEVANCE TO THE POSSIBLE SETTING UP OF A COMPULSORY PRIVATE PROVIDENT FUND SYSTEM IN ABOUT THREE TO FIVE YEARS.
HE EMPHASISED THAT SHOULD IT BE RECOMMENDED THAT A PRIVATE PROVIDENT FUND SYSTEM WOULD, IN THE LONG RUN, BE BENEFICIAL TO HONG KONG'S PROSPERITY AND THE WELL-BEING OF THE PEOPLE, LEGISLATION SHOULD BE ENACTED TO PROTECT CONTRIBUTIONS TO SUCH FUNDS.
IN ORDER TO GENERATE MORE SUPPORT ON THE PART OF EMPLOYEES FOR PARTICIPATION IN A PROVIDENT FUND. MR CHEONG-LEEN SUGGESTED THAT THE GOVERNMENT SHOULD EVEN CHANGE THE EXISTING LEGISLATION TO ALLOW EMPLOYEE CONTRIBUTIONS TO BE TAX DEDUCTIBLE, AND ALSO INTEREST INCOME AND GAINS EARNED ON PROVIDENT FUND MONEYS TO BE EXEMPTED FROM TAXATION.
LASTLY, HE CALLED ON THE GOVERNMENT TO MAKE A MORE THOROUGH STUDY OF THE NEED, THE PRACTICABILITY AND THE RELATIVE BENEFITS TO BE DERIVED FROM SOME FORM OF COMPULSORY PRIVATE PROVIDENT FUND SYSTEM FOR THE PEOPLE OF HONG KONG.
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