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WEDNESDAY, OCTOBER 27, 1993
PENSION FUND COST NO EXTRA EXPENDITURE
THE ACTING SECRETARY FOR THE CIVIL SERVICE, MR STUART HARBINSON, REITERATED TODAY (WEDNESDAY) THAT NO ADDITIONAL EXPENDITURE WAS INVOLVED IN THE PROPOSED CIVIL SERVICE PENSION RESERVE FUND.
SPEAKING AT THE RESUMED DEBATE ON THE MOTION OF THANKS IN THE LEGISLATIVE COUNCIL, MR HARBINSON SAID CIVIL SERVICE PENSIONS FORMED PART OF THE GOVERNMENT'S RECURRENT OPERATING EXPENDITURE AND WERE PAID OUT OF GENERAL REVENUE.
"THE PENSION RESERVE FUND COULD ONLY BE USED IN THE ALMOST INCONCEIVABLE EVENT THAT THERE WAS AN INSUFFICIENCY OF RECURRENT REVENUE TO MEET THE STATUTORY PENSION CHARGES, HE SAID.
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MOREOVER, INDIVIDUAL CIVIL SERVANTS WILL NOT GET A DOLLAR MORE THAN THEY ARE ALREADY ENTITLED TO JUST BECAUSE OF THE EXISTENCE OF A PENSION RESERVE FUND.
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HE POINTED OUT THAT THE COST OF CIVIL SERVICE PENSIONS PERCENTAGE OF THE GOVERNMENT'S ANNUAL OPERATING EXPENDITURE WAS FORECAST TO REMAIN AT ITS CURRENT LEVEL OF BETWEEN FOUR AND FIVE PER CENT FOR THE NEXT 10 YEARS.
"NOR IS ANY SUDDEN JUMP ANTICIPATED THEREAFTER,
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HE SAID.
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INDEED IN THE VERY LONG TERM THE PERCENTAGE SHOULD SLIGHTLY, HE ADDED.
DECLINE
MR HARBINSON SAID THE GOVERNMENT PROPOSED TO ESTABLISH A $7 BILLION PENSION RESERVE FUND IN RECOGNITION OF THE FACT THAT THERE WAS A MAJOR PSYCHOLOGICAL CONCERN WITHIN THE CIVIL SERVICE ON THIS ISSUE.
TO BE ESTABLISHED BY RESOLUTION OF THE LEGISLATIVE COUNCIL UNDER THE PUBLIC FINANCE ORDINANCE, IT WOULD BE A STATUTORY FUND SET UP UNDER THE AUTHORITY OF THE COUNCIL WHICH COULD ONLY BE CHANGED BY A FURTHER RESOLUTION OF THE COUNCIL.
MR HARBINSON ADDED THAT THE CENTRAL STAFF CONSULTATIVE COUNCILS AND THE CHINESE SIDE IN THE JOINT LIAISON GROUP WOULD BE CONSULTED THE ISSUE.
ON THE QUESTION OF LOCALISATION OF THE CIVIL HARBINSON SAID OF THE SOME 22 SENIOR POSTS, 11 WERE, SHORTLY. FILLED BY LOCAL OFFICERS WHO WERE POTENTIALLY TERMS OF THE QUALIFICATIONS SET OUT IN THE BASIC LAW.
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SERVICE, MR OR WOULD BE QUALIFIED IN
HE ADDED THAT IN THE ADMINISTRATIVE SERVICE THERE WERE ALREADY A LARGE NUMBER OF HIGHLY COMPETENT AND EXPERIENCED LOCAL OFFICERS AT THE LEVELS IMMEDIATELY BELOW THE FUTURE PRINCIPAL OFFICIALS LEVEL, WHO WOULD BE IN A POSITION TO MOVE UP IN THE NEXT COUPLE OF YEARS.
"THE GOVERNMENT ATTACHES GREAT IMPORTANCE TO CONTINUITY AND SUCCESSION AT THESE SENIOR LEVELS OF THE ADMINISTRATION AND WILL HAVE SUITABLE CANDIDATES IN PLACE IN GOOD TIME BEFORE THE TRANSFER IN SOVEREIGNTY.
/MR HARBINSON