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THURSDAY, APRIL 22, 1993
MR STEPHEN CHEONG : SIR, IN RESPECT OF THIS COMPULSORY RETIREMENT SCHEME, I WOULD SIMPLY LIKE TO TAKE THIS OPPORTUNITY TO INFORM YOU AS A REPRESENTATIVE OF ONE OF THE MAJOR EMPLOYERS ASSOCIATION, THE FEDERATION OF HONG KONG INDUSTRIES, AND I CAN SAFELY SAY FOR QUITE A NUMBER OF MY SISTER ORGANISATIONS THAT WE SUPPORT CERTAINLY NO LESS THAN A CENTRAL PROVIDENT FUND.
GOVERNOR
CLARIFICATION.
I'M GRATEFUL то THE HONOURABLE MEMBER FOR THAT
I THINK THAT THERE ARE VERY LONG LEGS IN
TI!IS DISCUSSION AND THAT WE'LL FIND IT RUNNING FOR SOME MONTHS AHEAD.
DR YEUNG SUM.
MR PRESIDENT SUPPLEMENTARY'S?
DR
THE
YOU
THE
THE
YEUNG SUM (THROUGH INTERPRETER) : THANK YOU. A QUESTION FOR GOVERNOR. REGARDING RETIREMENT BENEFITS, I HOPE THAT WHEN CONSIDER THIS POINT YOU WILL LOOK AT IT FROM THE ANGLE OF CONTRIBUTOR. NOW IF HE STARTS AT THE TWENTIES AND THEN WHEN, BY TIME HE REACHES 60, IF IT IS CENTRAL PROVIDENT FUND, HE WILL BE ABLE TO GET A CERTAIN LUMP SUM AND INCLUDING INTEREST AND OTHER THINGS BUT IF DURING THAT PERIOD SOME PRIVATE INSURANCE COMPANIES GO BANKRUPT THEN HE WILL HAVE NOTHING SO IT WON'T BE FAIR AND THAT'S THE REASON WHY I'M ASKING YOU TO LOOK AT IT FROM THE ANGLE OF THE CONTRIBUTORS. AND ON THIS PARTICULAR POINT, PRIVATE INSURANCE COMPANIES DEFINITELY WILL NOT BE UP TO THE TASK.
GOVERNOR
I DON'T THINK THERE IS ANY ARGUMENT AT ALL ABOUT THE OBLIGATION TO ENSURE PROPER REGULATION OF PRIVATE PENSIONS SO AS то GIVE THOSE WHO WE HOPE WILL IN DUE COURSE BENEFIT FROM THEM THE MAXIMUM PROTECTION. I SPEAK AS SOMEBODY WHO IN THE UNITED KINGDOM ONCE HAD TO DEAL WITH SOME OF THE FALLOUT FROM THE MAXWELL AFFAIR AND THE IMPACT ON MY CONSTITUENTS, 80 I RECOGNIZE THE IMPORTANCE OF A PROPERLY REGULATED MARKET. THE QUESTION ONE HAS TO GO ON TO ASK Is HOW EXTENSIVE BEYOND THAT THE TAX PAYERS' CONTINGENT LIABILITY SHOULD BE AND, SECONDLY, WHETHER, IF THE TAX PAYERS' LIABILITY GOES VERY FAR, ONE DOESN'T FETCH UP RUNNING THE DANGER OF UNDERMINING PRUDENTIAL MANAGEMENT OF PENSION FUNDS, BECAUSE YOU'D FIND MORE FUNDS CONCEIVABLY THINKING THAT THEY DIDN'T HAVE TO TAKE TOO MUCH CARE SINCE THE TAX PAYER WOULD ALWAYS BE THERE TO PICK UP THE BILL IF THINGS WENT WRONG. THOSE ARE ISSUES THAT WE HAVE TO LOOK AT AND CONSIDER VERY CAREFULLY. I THINK THERE ARE IMPORTANT PRIVATE SECTOR SOLUTIONS TO THE QUESTION OF RETIREMENT BENEFITS WHICH CAN BE ORGANIZED SO AS TO LIMIT THE RISKS TO THE RETIREE. I THINK THAT THAT IS PROBABLY THE BEST WAY FOR THE COMMUNITY TO GO. I THINK THE IDEA OF THE GOVERNMENT CONTROLLING HUGE FUNDS ON BEHALF OF POTENTIAL RETIREES WOULD NOT BE IN KEEPING WITH THE USUAL ECONOMIC PHILOSOPHY PURSUED IN THIS COMMUNITY AND WOULD RUN THE RISK OF POLITICIZING BENEFITS AND INVESTMENT IN AN UNDESIRABLE WAY.
MR TIK CHI-YUEN (THROUGH INTERPRETER) : THANK YOU, I AM SURE THAT THE GOVERNOR DOES UNDERSTAND THAT LEGCO MEMBERS AND A LOT OF ORGANIZATIONS ARE FOR CENTRAL PROVIDENT FUND BUT UNFORTUNATELY THE EXCO DISCUSSED THIS PREVIOUS LY AND ALSO VOTED THIS DOWN AND 50 UNDER THE CIRCUMSTANCES, DO YOU THINK, MR GOVERNOR, THAT THE EXCO SHOULD ONCE AGAIN DELIBERATE ON THIS, TAKING THE VIEWS OF THE LEGISLATIVE COUNCIL?
/GOVERNOR