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WEDNESDAY, JULY 10, 1991
THEREFORE, HE SAID, IN 1987, IT WAS DECIDED THAT A SERIES OF MEASURES, WHICH WERE CONSIDERED TO BE MORE EFFECTIVE THAN THE CENTRAL PROVIDENT FUND, WOULD BE IMPLEMENTED TO HELP THE RETIREES AND OTHER ELDERLY PEOPLE RESOLVE THEIR PROBLEMS OF LIVELIHOOD.
THE ADMINISTRATION HAD ALSO UNDERTAKEN IN 1987 TO KEEP IMPROVING THE LONG SERVICE PAYMENT SCHEME IN ORDER TO PROVIDE BETTER EMPLOYMENT BENEFITS FOR EMPLOYEES DURING THEIR EMPLOYMENT PERIOD.
IN AN EFFORT TO ENCOURAGE EMPLOYERS TO ESTABLISH PROVIDENT FUND OR RETIREMENT SCHEMES, MR CHAN POINTED OUT THAT THE GOVERNMENT ALSO PLEDGED TO PROVIDE A STATUTORY SYSTEM TO REGULATE RETIREMENT SCHEMES.
"IN BOTH RESPECTS, WE HAVE MADE GOOD PROGRESS, THE SECRETARY
SAID.
IN JULY 1988, THE LONG SERVICE PAYMENT SCHEME HAD BEEN EXTENDED TO COVER THOSE WHO RETIRE OWING TO AGING OR HEALTH PROBLEMS.
WITH THE GAZETTING OF THE EMPLOYMENT (AMENDMENT) BILL 1991 IN MAY THIS YEAR, THE LONG SERVICE PAYMENT SCHEME WAS FURTHER IMPROVED 90 THAT YOUNGER WORKERS MIGHT ALSO RECEIVE A PART OF THE LONG SERVICE PAYMENT AFTER FIVE YEARS' SERVICE IF THEY WERE UNFORTUNATELY DISMISSED.
"IT IS INTENDED THAT THE BILL WILL BE TABLED AT THIS COUNCIL IN OCTOBER," HE NOTED.
IN ORDER TO PROTECT LONG SERVICE AND SEVERANCE PAYMENTS FROM BEING AFFECTED BY EMPLOYERS' INSOLVENCY, THE PROTECTION OF WAGES ON INSOLVENCY (AMENDMENT) BILL 1991 WAS ENACTED IN MAY THIS YEAR SO THAT AFFECTED EMPLOYEES MIGHT RECEIVE MORE PAYMENTS UNDER THE PROTECTION OF WAGES INSOLVENCY FUND.
"AS FAR AS THE SUPERVISION OF RETIREMENT SCHEMES IS CONCERNED, THE OCCUPATIONAL RETIREMENT SCHEMES BILL 1991 HAS BEEN TABLED AT THIS COUNCIL," HE SAID.
WHEN CONSIDERING THE ESTABLISHMENT OF THE CENTRAL PROVIDENT FUND, MR CHAN SAID THE ADMINISTRATION HAD ALREADY LOOKED INTO THE POSSIBILITY OF USING IT AS A SOURCE OF CAPITAL ΤΟ FINANCE INFRASTRUCTURAL PROJECTS IN THE STUDY CONDUCTED IN 1987.
"OUR VIEW WAS THAT IT WOULD NOT BE OF ANY GREAT HELP UNLESS THE CENTRAL PROVIDENT FUND PROVIDED LOAN CAPITAL BELOW THE MARKET RATE.
"BUT IF LOAN CAPITAL WERE RAISED FROM THE FUND ON FAVOURABLE TERMS TO FINANCE INFRASTRUCTURAL PROJECTS, THE FUND MIGHT FAIL TO OBTAIN A REASONABLE RETURN FOR ITS INVESTMENT AND WAS THUS UNFAIR TO 1TS CONTRIBUTORS.
"OUR
VIEW HAS NOT BEEN AFFECTED BY THE DECISION TO BUILD THE NEW AIRPORT,' MR CHAN SAID.
HE SAID WHEN THE GOVERNMENT CONSIDERED NOT TO SET UP A CENTRAL PROVIDENT FUND IN 1987, IT HAD TAKEN INTO CONSIDERATION TWO MAIN FACTORS.
/FIRSTLY, THE
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