XN000022-1978-04-26 — Page 10

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WEDNESDAY, APRIL 26, 1978

HE SAID THAT WHATEVER INITIAL LOANS TO BE MADE BY GOVERNMENT FOR THE FIRST TWO OR THREE YEARS SHOULD BE INTEREST-FREE TO GET THE SCHEME ESTABLISHED ON A SOUND FOOTING. THE GOVERNMENT COULD ALSO CONTRIBUTE TO ITS FUND AS AND WHEN REQUIRED TO PROTECT THE VALUE OF THE BENEFITS AGAINST INFLATION. IT WOULD ALSO HAVE TO CONSIDER WHAT REGULATIONS ARE REQUIRED TO GOVERN THE OPERATION OF THE SOCIAL SECURITY SYSTEM.

DR. THE HON. HARRY FANG ALSO POINTED OUT THE DISCREPANCIES IN THE CALCULATION OF THE AMOUNT AND THE QUALIFYING PERIOD FOR SICKNESS BENEFIT.

HE EXPLAINED THAT WORKERS MIGHT HAVE BEEN EMPLOYED FOR LESS THAN THREE YEARS WITH THEIR EMPLOYER OR MIGHT HAVE ALREADY, USED UP THEIR ACCUMULATED LEAVE EARLIER. WHERE THE WORKER IS THE SOLE BREAD-WINNER, WAITING FOR UP TO ONE MONTH TO QUALIFY FOR BENEFITS WOULD CAUSE HARDSHIP.

HE FURTHER EXPLAINED THAT A SICKNESS PAY OF TWO-THIRDS NORMAL WAGE IS CONSIDERED TO BE THE MINIMUM AMOUNT REQUIRED EOR A PERSON TO LOOK AFTER HIS FAMILY DURING THE PERIOD THAT HE IS UNABLE TO WORK.

THE HON. MRS. KWAN KO SIU-WAH SUGGESTED THAT BEFORE THE SCHEME IS IMPLEMENTED PILOT PROJECTS SHOULD BE CARRIED OUT AMONG EMPLOYEES OF SELECTED TRADES SO AS TO OBTAIN INFORMATION AND EXPERIENCE. A WORKING PARTY SHOULD BE SET UP TO LOOK INTO THE DETAILS OF THE SCHEME AND TO CONSULT VARIOUS CONCERNED PARTIES REGARDING ITS IMPLEMENTATION.

SHE DID NOT SUPPORT THE PROVISION FOR CONTRACTING, OUT OF THE SCHEME AS THIS MAY LEAD TO THE WITHDRAWAL OF THE BETTER-OFF AND HENCE LIMITATION OF THE SCHEME TO THE LOW INCOME GROUP.

SHE ALSO FOUND THE BENEFITS PROPOSED BY THE SCHEME GROSSLY INADEQUATE AND SUGGESTED THAT THE BENEFITS SHOULD BE WEIGHTED IN FAVOUR OF THOSE WHO EARN RELATIVELY LESS. THE INCOME CEILING COULD BE RAISED FROM $2,000 TO $4,000 AND CONTRIBUTION RATE COULD EE RAISED TO FOUR OR EVEN FIVE PER CENT TO IMPROVE THE BENEFITS, A MORE ADEQUATE COVERAGE FOR OLD AGE, IN THE FORM OF PENSION OR A LUMP SUM PAYMENT, OR EVEN FOR UNEMPLOYMENT COULD THEN EE CONTEMPLATED.

THE REV. THE HON. JOYCE M. BENNETT BELIEVED THAT MORE AND MORE WORKERS ARE WILLING TO PAY INTO SCHEMES WHICH WILL PROVIDE SICKNESS, INJURY AND OLD-AGE BENEFITS. SHE THOUGHT THEY MUST EE ENCOURAGED DO THIS SINCE IT WILL CREATE A MORE STABLE SOCIETY OF PEOPLE WITH A STAKE IN THE FUTURE OF HONG KONG.

THE UNOFFICIALS ALSO COMMENTED ON OTHER ASPECTS OF THE GREEN PAPER WHICH THEY THOUGHT NEEDED TO BE IMPROVED.

ALLORANCE

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