5
FRIDAY, DECEMBER 17, 1993
THERE
HE SAID IT WAS TRUE ANYWHERE IN THE WORLD THAT IF CONTRIBUTIONS, BE THEY TAXES OR LEVIES, THEN OF COURSE THOSE WHO BETTER OFF WOULD TEND TO HAVE TO CONTRIBUTE MORE.
WERE
WERE
"THIS IS NOT A NEW CONCEPT FOR HONG KONG. THAT IS PRECISELY THE CONCEPT WHICH UNDERLIES OUR PRESENT TAXATION SYSTEM," HE SAID.
ASSUMING A FIRST
HE WARNED THAT TO HAVE A NON-CONTRIBUTORY SCHEME, QUALIFYING AGE OF 65, WOULD MEAN A BURDEN OF $13 BILLION IN THE YEAR ON TAXPAYERS.
HE ALSO CATEGORICALLY DENIED THAT THE GOVERNMENT WAS DELAYING TACTICS.
EMPLOYING
PURSUE A
"WE HAVE DECIDED THAT THE WAY FORWARD ON PROVIDENT FUNDS IS NOT COMPULSION BUT
DECIDED TO VOLUNTARISM. WE HAVE FURTHER COMPULSORY AND
SATISFIED CONTRIBUTORY OPS, SUBJECT TO BEING
NUMBER OF MAJOR ISSUES.
ON A
THE AND
"IT IS A FACT THAT WE NEED TIME TO WORK OUT THE DETAILS OF SCHEME, AND TO HAVE AN INFORMED DIALOGUE BOTH WITH THE COMMUNITY THE CHINESE GOVERNMENT. THIS IS TOO BIG AN ISSUE TO STAMPEDE AHEAD ON; WE MUST BE SURE OF OUR GROUND, HE SAID.
"
THE
SUGGESTION
HE
ANSWERED WITH AN UNAMBIGUOUS "NO" TO ALSO THAT THE GOVERNMENT WAS TRYING TO SAVE MONEY THROUGH THIS INITIATIVE.
HE
SAID THE SAVING FROM REPLACING THE EXISTING LOWER ALLOWANCES AND STANDARD RATE SOCIAL SECURITY PAYMENTS TO THE WITH OPS WOULD BE PLOUGHED BACK INTO FINANCING THE OPS.
"THERE
OLD AGE ELDERLY
AND FOR RUNNING LEFT AFTER THIS
WILL BE
MET NEW EXPENDITURE TO BE REGULATING THE SCHEME, AND THE BALANCE OF SAVINGS WOULD BE USED TO REDUCE CONTRIBUTIONS BY EMPLOYERS AND EMPLOYEES.
"THERE
AND
WILL BE FURTHER CONTRIBUTIONS FROM
THERE EMPLOYER.
WILL BE REDUCED PROFITS EMPLOYERS' CONTRIBUTIONS WILL COUNT AS EXPENDITURE,
TAX
TT
GOVERNMENT
REVENUE HE ADDED.
AS AN BECAUSE
TO BECOMING A RATHER EMOTIVE
COMMENTING ON THE SUGGESTION THAT THE GOVERNMENT WAS TRYING REDISTRIBUTE INCOME AND THAT HONG KONG WAS IN DANGER OF
MR MACLEOD SAID THESE IMPRECISE WELFARE LABELS WERE NOT HELPFUL TO THE DEBATE.
STATE,
FACT IS
AND
SOME
MORE THAN
"THE
BENEFIT THAT ALL TAX SYSTEMS OTHERS, HONG KONG IS NO EXCEPTION, HE SAID.
11
HEALTH
FOR EXAMPLE, HE SAID, THE GOVERNMENT SUBSIDISED HEAVILY
A NON-CONTRIBUTORY CARE, EDUCATION AND HOUSING AND IT ALSO PROVIDED SAFETY NET THROUGH THE SOCIAL SECURITY SYSTEM.
AND
GO BEYOND
HOWEVER, HE STRESSED THAT HONG KONG HAD BEEN VERY CAREFUL WOULD GO ON BEING VERY CAREFUL TO ENSURE THAT IT DID NOT WHAT IT COULD AFFORD.
"MOST
IMPORTANTLY,
OUR NEW PROPOSAL IS
ON BASED
CAREFULLY
BR
BALANCING THE TOTAL BENEFITS WITH THE TOTAL CONTRIBUTIONS; IT WILL A SELF-CONTAINED SET OF TRANSACTIONS IN A SEPARATE FUND, SEPARATE FROM
HE SAID. NORMAL GOVERNMENT EXPENDITURE AND REVENUE,
1+
/HE FURTHER