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MPF Bill: second reading
Following is the speech by the Secretary for Education and Manpower, Mr Michael Leung, at the resumption of the second reading of the Mandatory Provident Fund Schemes Bill in the Legislative Council today (Thursday):
Mr President,
The debate today marks the culmination of discussions that have gone on for more than a generation about how best to provide financial security for members of our workforce when they retire. I am grateful to Members who voted against an earlier motion to adjourn discussion of this most important issue until the next session. The community needs to know now where it stands on the subject of retirement protection, and Members deserve the opportunity to vote for the Mandatory Provident Fund Schemes Bill on its merits.
Retirement protection is an issue which both Government and the community have taken seriously. In 1992 we proposed a community-wide retirement protection system. In 1994 we proposed an old age pension scheme. Neither met with full community support. From submissions on the old age pension scheme, though, it became clear to us that what the community wanted was the early introduction of a mandatory, privately managed provident fund system. Such support was underlined by many rounds of consultation within the community earlier this year. On 8 March this year, Members indicated their clear support for the concept of what we now call the Mandatory Provident Fund (MPF) Schemes by passing the motion.
After seeking independent advice as to the feasibility of our approach, we announced in May this year the main points that would be covered in the MPF legislation. The Mandatory Provident Fund Schemes Bill was introduced into this Council on 14 June.
I am most grateful to the Honourable Henry Tang, Chairman of the Bills Committee to study the Mandatory Provident Fund Schemes Bill, and other Members of the Bills Committee for the time and effort they have put into scrutinising this Bill.
Over the past few weeks, we have worked hard to reach general agreement on the provisions of the Bill. We have considered very carefully the views of Members of the Bills Committee, as well as the helpful submissions received from various employers' and employees' groups, professional organisations and the deputations received by the Bills Committee. Where possible, we have tried to accommodate many of the suggestions that have been put forward. The Committee Stage amendments which I shall move later on reflect the outcome of that consideration.