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WEDNESDAY, NOVEMBER 13, 1974

POSSIBILITY OF ESTABLISHING A CENTRAL PROVIDENT FUND

TO BE STUDIED BY SOCIAL WELFARE ADVISORY COMMITTEE ·

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THE SECRETARY FOR SOCIAL SERVICES, THE HON, LI FOOK-KOW, SAID TODAY THAT THERE WERE STRONG ARGUMENTS" AGAINST GOVERNMENT ADMINISTRATION OF A COMPULSORY CENTRAL PROVIDENT FUND.

SPEAKING IN THE LEGISLATIVE COUNCIL HE SAID THAT IF THE GOVERNMENT WERE TO OPERATE SUCH A FUND TO WHICH BOTH EMPLOYERS' AND EMPLOYEES WOULD BE OBLIGED TO CONTRIBUTE, IT SEEMS LIKELY THAT MANY OF THEM WOULD OBJECT TO SUCH COMPULSION AND REGARD THE FUND AS A FORM OF TAXATION, PARTICULARLY IF ITS ASSETS WERE USED LOCALLY FOR DEVELOPMENT PURPOSES.+

MR. LI SAID THAT ALTHOUGH THESE OBJECTIONS MIGHT BE REDUCED IF THE COST OF ADMINISTRATION WERE MET FROM PUBLIC FUNDS, IT SEEMED UNDESIRABLE TO USE THEM FOR THIS PURPOSE AT THE EXPENSE OF OTHER SOCIAL AND COMMUNITY PROBLEMS WHICH HAVE URGENT CLAIMS ON +OUR LIMITED RESOURCES+.

+FOR EXAMPLE, HE SAID, I AM SURE HONOURABLE MEMBERS WOULD AGREE THAT THE EXPANSION IN PUBLIC HOUSING AND THE IMPLEMENTATION OF WHITE PAPERS ON SECONDARY EDUCATION AND MEDICAL SERVICES SHOULD HAVE PRIORITY.-

HOWEVER, MR. LI ADDED THAT IT WOULD BE APPROPRIATE FOR THE SOCIAL WELFAŘE ADVISORY COMMITTEE TO DEVOTE ITS ATTENTION IN DUE COURSE TO THE POSSIBILITY OF ESTABLISHING A CENTRAL PROVIDENT FUND +AS BEING ONE FORM OF CONTRIBUTORY SOCIAL INSURANCE,+

IN THE MEANTIME, THE GOVERNMENT WOULD CONTINUE TO ENCOURAGE EMPLOYERS TO SET UP THEIR OWN PROVIDENT FUND SCHEMES. IN FACT, A NUMBER OF THE LARGER AND BETTER EMPLOYERS ALREADY OPERATE SCHEMES FOR THEIR EMPLOYEES.

+FOR THOSE EMPLOYERS WITH A SMALL NUMBER OF WORKERS,

A SEPARATE SCHEME MIGHT NOT BE VIABLE. HOWEVER SCHEMES ON THE BASIS OF INDIVIDUAL INDUSTRIES MIGHT BE FORMULATED BY THE APPROPRIATE TRADE ASSOCIATIONS AND EMPLOYERS' ORGANISATIONS,+ HE SAID.

HE ADDED THAT HE INTENDED TO CONSULT SOME OF THESE BODIES TO SEE IF SATISFACTORY CONTRIBUTORY PROVIDENT FUND SCHEMES, NOT INVOLVING PUBLIC MONEY, COULD BE DEVISED.

DISCUSSING THE PUBLIC ASSISTANCE AND DISABILITY AND INFIRMITY ALLOWANCE SCHEMES, THE SECRETARY FOR SOCIAL SERVICES SAID THAT AT THE END OF OCTOBER THERE WERE OVER 37,000 PUBLIC ASSISTANCE AND 51,000 DISABILITY AND INFIRMITY ALLOWANCES CASES.

IN THE FIRST SEVEN MONTHS OF THIS FINANCIAL YEAR, PAYMENTS MADE UNDER THE PUBLIC ASSISTANCE SCHEME AMOUNTED TO NEARLY $50 MILLION COMPARED WITH $23 MILLION FOR THE SAME PERIOD LAST YEAR. THE DISABILITY AND INFIRMITY ALLOWANCE SCHEME PAID OUT NEARLY $32 MILLION, ALMOST THREE TIMES THE AMOUNT FOR THE CORRESPONDING PERIOD LAST

YEAR.

/MR. LI .....

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