XN000022-1985-12-04 — Page 31

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WEDNESDAY, DECEMBER 4, 1985

SUPPORTING THE MOTION, THE HON HO SAI-CHU URGED THE GOVERNMENT TO CONSIDER EVENTUALLY ABOLISHING THE LEVY ON THE VALUE OF CONSTRUCTION WORKS AND QUARRY PRODUCTS FOR CONTRIBUTION TO THE FUND AND TO REVIEW THE FUND'S AMBIT.

NOTING THAT THERE HAD BEEN A STEADY AND SIGNIFICANT INCREASE IN THE INCOME OF THE COMPENSATION FUND SINCE ITS ESTABLISHMENT IN 1981, HE SAID ITS EXPENDITURE HAD BEEN FALLING FOR THE PAST TWO YEARS AS A RESULT OF A DECREASE IN THE NUMBER OF CLAIMANTS AND A REDUCTION IN THE AMOUNT OF COMPENSATION PAYABLE.

+NATURALLY, THIS RESULTED IN HUGE SURPLUSES.

+ IN 1984 ALONE, THE SURPLUS ITSELF IS IN THE ORDER OF $23 MILLION AND THERE ARE REASONS TO BELIEVE THAT THIS TREND WOULD CONTINUE,+ HE SAID.

MR HO SAID HE BELIEVED THE INTERESTS ON THE SURPLUS FUNDS ALONE WOULD BE SUFFICIENT TO MEET THE OUTGOINGS OF THE FUND IN A MATTER OF THREE TO FOUR YEARS.

+ IF THIS IS THE CASE, I SUBMIT THAT IT WOULD NO LONGER BE MEANINGFUL TO IMPOSE A LEVY ON THE VALUE OF CONSTRUCTION WORKS AND QUARRY PRODUCTS PRODUCED AND I AM PLEASED THAT THE GOVERNMENT HAS TAKEN THE INITIATIVE TO INTRODUCE THE RESOLUTION TO REDUCE THE RATE OF LEVY BY 25 PER CENT NEXT YEAR,+ HE SAID.

MR HO SUGGESTED THAT THE SAME RATE OF REDUCTION COULD BE MADE IN SUBSEQUENT YEARS AND THE LEVY COULD BE ABOLISHED ALTOGETHER WHEN THE FUND ITSELF COULD GENERATE SUFFICIENT RESOURCES TO FINANCE ITS PRESCRIBED FUNCTIONS.

+AL TERNATIVELY, IF THERE ARE SOME COMPELLING REASONS TO MAINTAIN THE LEVY, I SUGGEST THAT THE AMBIT OF THE FUND SHOULD BE REVIEWED SO AS TO ALLOW THE SURPLUS FUNDS TO BE USED FOR EVEN MORE GAINFUL PURPOSES SUCH AS EDUCATION, PUBLICITY AND RESEARCH IN CONNECTION WITH THE PREVENTION OF PNEUMOCONIOSIS AND IF APPROVED, WILL BE A LOGICAL EXTENSION OF THE PURPOSE FOR WHICH THE FUND WAS SET UP.

+ IT IS MY SINCERE BELIEF THAT THE MOST IMPORTANT TASK IS TO REDUCE THE INCIDENCE OF THE DISEASE AND THAT NO MOMENTARY COMPENSATION IS SUFFICIENT TO ALLEVIATE THE SUFFERINGS OF THE PNEUMOCON IOTICS,+ MR HO SAID.

HE ADMITTED THAT HIS PROPOSALS MIGHT CARRY WITH IT CERTAIN IMPLICATIONS THAT MIGHT HAVE TO BE CAREFULLY EXAMINED.

+ I WOULD, HOWEVER, LIKE TO THINK THAT THE SPIRIT OF MY PROPOSALS IS NO DIFFERENT FROM THAT OF THE MOTION BEFORE THIS COUNCIL AND THAT IS, TO IMPROVE THE COMPENSATION SCHEME SO AS TO BETTER THE WELFARE OF THE PEOPLE WORKING IN THE CONSTRUCTION AND QUARRY INDUSTRIES.

/+IT IS