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WEDNESDAY, MAY 13, 1987
ON THE SECOND QUESTION, HE SAID IT WAS NOT THAT THE BENEFITS SHOULD NOT BE MADE ADEQUATE, BUT THAT SOMETHING MORE THAN SIMPLY IMPROVING THE EXISTING ARRANGEMENTS WAS NEEDED.
+1 HAVE TWO MAJOR OBJECTIONS TO RELYING PRIMARILY ON WELFARE PROVISIONS BY THE GOVERNMENT TO CATER TO THE NEEDS OF THE RETIRED ELDERLY.
+ONE ALL SUCH PROVISIONS ARE FUNDED BY CURRENT TAX REVENUE WHICH POSE A VERY HEAVY BURDEN INDEED ON THE GOVERNMENT IN LEAN YEARS WHEN REVENUE IS NOT BUOYANT AND THE LEANER THE ECONOMY IF THE FATTER THE DEMAND FOR WELFARE PROVISIONS. IT IS THEREFORE IMPORTANT THAT THEY SHOULD ONLY PROVIDE FOR SUBSISTENCE.
+SECOND, THE RATES OF PAYMENT INEVITABLY BECOME MAJOR POLITICAL ISSUES CROPPING UP FROM TIME TO TIME, WITH OR WITHOUT DIRECT ELECTIONS TO THE LEGISLATIVE COUNCIL, AS IT IS THE ONE SURE WAY TOWARDS THE REDISTRIBUTIVE WELFARE STATE,+ HE SAID.
MR WONG SAID HE FEARED, WITHOUT THE INTRODUCTION OF ARRANGEMENTS SUCH AS THE PROVIDENT FUND, IT WOULD BECOME MORE AND MORE DIFFICULT FOR THE GOVERNMENT TO WARD OFF SOCIAL AND POLITICAL DEMANDS IN THIS DIRECTION,
HE WENT ON TO EXPLAIN WHY HE BELIEVED FURTHER IMPROVING THE EXISTING ARRANGEMENTS IN EMPLOYMENT BENEFITS WAS NOT THE APPROPRIATE SOLUTION TO THE PROBLEM OF THE RETIRED ELDERLY.
MR WONG SAID WITH LABOUR LEGISLATIONS STIPULATING THE AMOUNTS OF MONEY TO BE PAID IN TIMES SEVERING, IT WAS DIFFICULT TO ASCERTAIN WHERE JUSTICE LAY, AND WITH WELFARE PROVISIONS KEPT AT A MINIMAL SUBSISTENCE LEVEL AND WITHOUT THE INTRODUCTION OF PROVIDENT SCHEMES, LABOUR LEGISLATIONS FOR WIDER AMBITS AND COVERING MORE AREAS WOULD BECOME MAJOR POLITICAL ISSUES.
HE WAS THEREFORE OF THE OPINION THAT THE EXISTING ARRANGEMENTS OUGHT TO BE BOOSTED BY THE ADDITION OF PROVIDENT FUND ARRANGEMENTS.
LASTLY, HE SAID HE DID NOT SEE THE LOGIC BEHIND MANY EMPLOYERS' OBJECTION TO THE IDEA OF COMPULSORY PROVIDENT FUNDS, WHETHER CENTRALISED OR DECENTRALISED BECAUSE EMPLOYERS WERE ALREADY SHOULDERING THIS COMPARABLE RESPONSIBILITY UNDER THE EXISTING LONG SERVICE PAYMENT LEGISLATION.
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