9
FRIDAY, OCTOBER 14, 1994
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THE QUESTION IS, HOW DO YOU BEST ACHIEVE THE OBJECTIVE OF PROVIDING A SAFETY WELFARE NET FOR THE ELDERLY, WHITHOUT RUNNING ALL THE RISKS OF RAMPANT BANKRUPTING WELFARISM TO WHICH YOU PROPERLY REFERRED TO WHICH THE WORLD BANK REFERRED, AND I AGREE WITH EVERYTHING THE WORLD BANK HAS TO SAY ON THE ISSUE. WE CONCLUDE THAT THE BEST WAY OF AVOIDING THE TAX PAYER ENDLESSY BEING HIT FOR INCREASED WELFARE SPENDING IS TO PROVIDE FOR THE ELDERLY THROUGH A RINGFENCE SCHEME WITH SMALL CONTRIBUTIONS FROM THE EMPLOYER AND EMPLOYEE. NOW THERE ARE OTHERS WHO SAY, WE SHOULDN'T DO THAT, WE SHOULD GO ON ENCOURAGING PRIVATE PROVISION, THOUGH I THINK THE VIEW OF THE COMMUNITY WAS THAT IT WASN'T JUST ENOUGH TO ENCOURAGE IT, THAT THERE HAD TO BE SOME MANDATORY ELEMENT, BUT LEAVE THAT ON ONE SIDE, WE WILL GO ON ENCOURAGING PRIVATE PROVISION, AND AS FOR THE NEEDY ELDERLY, WE WILL MEET THEIR NEEDS THROUGH THE TAX PAYER, BUT IT STANDS TO REASON THAT AS SOON YOU ARE TALKING ABOUT MEETING THEIR NEEDS THROUGH THE TAX PAYER, YOU ARE NARROWING THE BASE OF THOSE WHO PAY THE BILL, I SAID IN MY REMARKS THAT SIX OUT OF TEN IN HONG KONG DON'T PAY TAX AT ALL, SO THE OTHER FOUR OUT OF TEN FETCH UP ON THEIR SALARY TAX SCALE RATES HAVING TO PAY THE COSTS FOR INCREASING PROVISION FOR THE ELDERLY, I NOTICED, AND I WANT TO STUDY THE SURVEY WHICH YOU PRODUCED TODAY ON ATTITUDES TO OLD- AGE PENSIONS, AND I NOTICED THAT, I THINK TWO FIFTHS OF THE ELEVEN PER CENT WHO HAD RESPONDED SAID THAT ON BALANCE THEY WOULD BE PREPARED TO PAY EXTRA TAX TO MEET THE ADDITIONAL COSTS OF WELFARE. I HAVE TO SAY THAT WHILE I THINK THAT IS AN INTERESTING FINDING I DON'T THINK I COULD BASE INCREASING TAXES ON A BASE AS NARROW AS THAT. WE WILL LOOK VERY CAREFULLY AT ANY AND EVERY THOUGHT THROUGH OPTION THAT IS PRODUCED IN THE COMMUNITY. WE CAN'T, EVEN IF WE WANTED TO,
WE CAN'T SIMPLY BLAZE AWAY WITHOUT HAVING A CONCENSUS IN THE COMMUNITY, AND, LET US BE FRANK, WITHOUT HAVING THE UNDERSTANDING AND AGREEMENT
OF CHINA AS WELL, BECAUSE THIS IS ALL GOING TO AFFECT ABOVE ALL WHAT HAPPENS AFTER 1997, BUT WHATEVER DECISION WE COME TO, WHAT I BEG YOU TO BELIEVE IS THAT SOONER OR LATER WE MUST COME TO A DECISION, IT'S NOT GOING TO BE ANY EASIER TO DEAL WITH IT IN 1997, OR 1998, OR AND AT THE END OF THE DAY AS WELL, I DOUBT WHETHER ANYBODY WILL FORWARD, THOUGH THEY MAY DO, WITH A SOLUTION WHICH RINGFENCES COSTS OF WELFARE PROVISION AS TIGHTLY AS WE HAVE PROPOSED IN SCHEME. AT THE MOMENT ABOUT TEN PER CENT OF THE POPULATION OF KONG ARE OVER 65, ANOTHER GENERATION IT WILL BE TWENTY PER CENT 65, MORE AND MORE PEOPLE LIVING LONGER, THE LONGEVITY RATES
THIS COMMUNITY, THE SECOND BEST IN THE WORLD, HOPE IT GOES FOR GOVERNORS TOO, IT CERTAINLY GOES FOR THE REST OF THE COMMUNITY, DEMOGRAPHY ITSELF, PROCLUDES PROCRASTINATION, SO I WELCOME THE CHAMBER OF COMMERCE'S CONTRIBUTION TO THE DEBATE, WE DO ALL HAVE TO THRASH OUT SOLUTION WHICH IS ACCEPTABLE TO THE COMMUNITY, BUT THE PROBLEM IS NOT GOING TO GO AWAY, AND WHILE WE DEBATE IT MORE AND MORE PEOPLE LIVE LONGER, AND ALAS MORE AND MORE PEOPLE LIVE LONGER IN REAL NEED.
1999,
COME
THE
THIS
HONG
OVER
A
GUY CLAYTON:
GOVERNOR, HAVE YOU FOUND ENVIRONMENTAL MATTERS INTRACTABLE THAN YOU HAD EXPECTED WHEN YOU FIRST CAME HERE? AND YOU SATISFIED WITH YOUR ADMINISTRATION'S PROGRESS IN THIS MATTER?
MORE
ARE
/GOVERNOR: