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WEDNESDAY, NOVEMBER 9, 1994
SECOND, THE PROPOSED OLD AGE PENSION SCHEME DOES NOT JUST TARGET THOSE ELDERLY MEMBERS OF OUR COMMUNITY WHO ARE LIVING IN POVERTY. THESE ARE ALREADY BEING ASSISTED ADEQUATELY UNDER THE COMPREHENSIVE SOCIAL SECURITY ASSISTANCE SCHEME, AS MENTIONED JUST NOW BY MY COLLEAGUE. THE PROPOSED SCHEME AIMS TO BENEFIT A MUCH LARGER GROUP OF ELDERLY PEOPLE, MANY OF WHOM, WHILE NOT ENTIRELY WITHOUT MEANS, CONSTANTLY FACE FINANCIAL DIFFICULTIES AND RUN THE RISK OF SLIPPING INTO POVERTY IN TIME, GIVEN THEIR MEAGRE SAVINGS AND VERY OFTEN MARGINAL INCOME SUPPORT FROM THEIR FAMILIES. THIS IS A GROUP WHOSE NEEDS SHOULD NOT BE IGNORED BY A CARING AND INCREASINGLY AFFLUENT SOCIETY LIKE OURS.
THIRD, IT IS NOT FAIR TO CONDEMN THE PROPOSED SCHEME, AS SOME HAVE DONE, ON THE GROUND THAT IT WOULD DESTROY THE TRADITIONAL CHINESE VALUE OF A FAMILY LOOKING AFTER ITS ELDERLY MEMBERS. IN AN AGE OF SMALL NUCLEAR FAMILIES AND INCREASING LONGEVITY, WE HAVE ΤΟ ACCEPT THAT THERE WILL BE AN EVER LARGER NUMBER OF ELDERLY PEOPLE WHO FOR ONE REASON OR ANOTHER CANNOT BE CARED ADEQUATELY BY THEIR FAMILIES. THE MODEST PENSION PROVISION WE ARE PROPOSING SHOULD HELP OUR SENIOR CITIZENS TO LIVE IN LESS FEAR OF FALLING INTO POVERTY AND TO LEAD A MORE DIGNIFIED LIFE WITH MORE INDEPENDENT MEANS. EXPERIENCE ELSEWHERE HAS INDICATED THAT THIS TENDS TO REDUCE FRICTION WITHIN FAMILIES AND FOSTER BETTER RELATIONSHIPS AMONG MEMBERS.
DEBATE.
I TURN NOW TO SOME OF THE SPECIFIC POINTS RAISED IN THIS
FINANCIAL RESPONSIBILITY
MEMBERS HAVE CALLED UPON THE GOVERNMENT TO ASSUME GREATER FINANCIAL RESPONSIBILITY FOR THE PROPOSED SCHEME, EITHER BY CONTRIBUTING A FIXED PERCENTAGE OF THE OVERALL COST OF THE PROPOSED SCHEME, OR BY INCREASING THE SIZE OF THE PROPOSED CAPITAL INJECTION. I BELIEVE IT IS FAIR TO SAY THAT THE PROPOSED GOVERNMENT CONTRIBUTION IS QUITE GENEROUS. WE WILL BE PROVIDING A SUBSTANTIAL CAPITAL INJECTION OF $10 BILLION AS A START-UP FUND FOR THE SCHEME. THIS WILL ALLOW IMMEDIATE PAYMENT OF PENSIONS TO THOSE ELIGIBLE, AND ACT AS A CUSHION AGAINST ADVERSE ECONOMIC CIRCUMSTANCES IN THE FUTURE.
ON THE RECURRENT SIDE, WE WILL BE CONTRIBUTING ALL
THE FUNDS THAT WOULD HAVE FINANCED THE NORMAL AND HIGHER OLD AGE ALLOWANCES, AND THE STANDARD RATE OF PAYMENT UNDER THE COMPREHENSIVE SOCIAL SECURITY ASSISTANCE SCHEME FOR PERSONS AGED 65 OR ABOVE. THIS AMOUNTS TO SOME $3.6 BILLION THIS YEAR, RISING TO $15.4 BILLION, IN 1994 PRICES, BY THE YEAR 2056. GOVERNMENT WILL ALSO CONTRIBUTE AS AN EMPLOYER. THIS CONTRIBUTION WILL AMOUNT TO ABOUT $1.2 BILLION THIS YEAR, GOING UP ΤΟ $4.3 BILLION, IN 1994 PRICES, BY 2056.
PUTTING THESE COMMITMENTS TOGETHER, GOVERNMENT WILL BE CONTRIBUTING ROUGHLY ONE-THIRD OF THE PENSION OUT-GO. IF WE AMORTISE THE $10 BILLION CAPITAL INJECTION OVER THE FIRST TWENTY YEARS, OUR CONTRIBUTION WILL AMOUNT TO ALMOST 40% OF THE PENSION OUT-GO FOR THE FIRST TWO DECADES. THIS IS ALREADY A SUBSTANTIAL SHARE OF THE PENSION COMMITMENT ON THE PART OF OUR TAX PAYERS. TO RAISE IT BEYOND THE PROPOSED LEVEL WOULD BE UNFAIR TO TAXPAYERS LINK WE SEEK TO ESTABLISH BETWEEN PENSION INCOME.
AND WOULD WEAKEN THE IRON- OUT-GO AND CONTRIBUTION
/FINANCING PENSIONS