XN000022-1984-07-24 — Page 20

TUESDAY, JULY 24, 1954

18

WAGE PROTECTION LEVY BACKED BY UMELCO

******

IT WAS IMPORTANT THAT WORKERS' WAGES SHOULD BE PROTECTED IN RECEIVERSHIP CASES AND THAT WORKERS BE PAID SWIFTLY, THE HON CHAN KAM-CHUEN, SAID TODAY.

HE WAS SPEAKING IN SUPPORT OF THE BUSINESS REGISTRATION (AMENDMENT) BILL 1984, WHICH PROVIDES FOR A LEVY OF $100 TO BE IMPOSED ON BUSINESS REGISTRATION CERTIFICATES FROM OCTOBER 1 THIS YEAR, TO FINANCE THE OPERATION OF THE PLANNED +PROTECTION OF WAGES ON INSOLVENCY FUND+.

REFERRING TO CRITICISM ABOUT A FLAT LEVY OF $100 BEING IMPOSED ON A CERTIFICATE, REGARDLESS OF SIZE OF THE BUSINESS, R CHAN SAID THAT THIS HAD BEEN CONSIDERED BY THE UMELCO +WORK ING GROUP ON PROBLEMS EXPERIENCED BY WORKERS OF COMPANIES IN RECEIVERSHIP+ AND FOUND TO BE THE SIMPLEST WAY OF DEALING THE MATTER.

OTHER SLIGHTLY MORE EQUITABLE METHODS OF RAISING A LEVY WERE CONSIDERED BUT WOULD ENTAIL MUCH MORE WORK AND ADDED COSTS TO THE PUBLIC PURSE, HE SAID.

+AFTER TAKING ALL FACTORS INTO CONSIDERATION, WE BELIEVE THAT THIS IS THE BEST METHOD AVAILABLE, BEARING IN MIND THE TIME FACTOR AND THE NEED TO GET THE FUND ESTABLISHED QUICKLY,+ MR CHAN SAID.

SPEAKING ALSO IN SUPPORT OF THE BILL, THE HON STEPHEN CHEONG SAID THAT THE UMELCO GROUP HAD LOOKED INTO VARIOUS METHODS OF RAISING THE LEVY AND HAD CHOSEN +A BALANCE BETWEEN EQUITY AND SIMPLICITY+,

HE SAID THAT THE CURRENT SUGGESTIONS EMBODIED IN THE BILL WERE THE BEST TO GIVE AN EARLY START TO SUCH A NOBLE CAUSE+.

HE UNDERSTOOD THAT THE ADMINISTRATION WOULD BE REVIEWING THE RATE OF LEVY, INCLUDING THE QUESTIONS OF BRANCH CERTIFICATES IN THE FUTURE.

HE SUPPORTED THE BILL, HE SAID, IN ORDER TO ENABLE FIRST PAYMENTS FROM THE PROTECTION OF WAGES IN INSOLVENCY FUND TO BE MADE AS EARLY AS POSSIBLE.+

/19

Page 20Page 21