XN000022-1985-12-18 — Page 18

1.

DENFOR. 1905

THE HUN CHAN KAM-UEN POINTED OUT THAT MOST OF THE LARGE COMMERCIAL STABLISHMENTS ALREADY HAD WELL ESTABLISHED PROVIDENT FUNDS WHICH PROVIDED ADEQUATE RETIREMENT BENEFITS FOR THEIR EMPLOYEES.

HE THEREFORE ADVISED THE SMALLER BUSINESS ESTABLISHMENTS WHICH FORMED OVER 96 PER CENT OF THE BUSINESS ESTABLISHMENTS IN HONG KONG AND WHICH WERE NOT REGISTERED AS LIMITED COMPANIES, TO PLAN FOR FUTURE FINANCIAL ADJUSTMENTS AS FORWARD PLANNING WOULD AVOID A CASH FLOW PROBLEM.

HE SAID SMALL PRIVATE COMPANIES SHOULD BE CHANGED TO LIMITED LIABILITY COMPANIES SO AS TO SEGREGATE THE IR BUSINESS AND FAMILY FINANCES,

MR CHAN ALSO ADVISED EMPLOYEES NOT TO RELY SOLELY ON THE LONG SERVICE PAYMENTS, AND HE SAID SYSTEMATIC SAVING AND PRODENT INVESTMENT WOULD ALLEVIATE A LOT OF UNPLEASANTNESS AFTER RETIREMENT EVEN IN THOSE COUNTRIES WHICH PROVIDED A PENSION FOR LIFE.

THE HON PANG CHUN-HOI ABSTAINED FROM VOTING ON THE MOTION SAYING THAT THERE WERE SERIOUS DISCREPANCIES BETWEEN THE BILL AND THE ORIGINAL PROPOSAL SUBMITTED BY THE LABOUR DEPARTMENT FOR DISCUSSION AT THE LABOUR ADVISORY BOARD.

HE SAID THE BILL WAS ENTIRELY CONTRARY TO THE FUNDAMENTAL PRINCIPLE AND SPIRIT OF LONG SERVICE PAYMENT. HE ADDED THAT HE HAD STUDIED THE LABOUR LEGISLATIONS OF NEIGHBOURING COUNTRIES BUT HAD FOUND NO SUCH UNREASONABLE AND DIFFERENT RATES OF PAYMENT FOR DIFFERENT AGE GROUPS.

MR PANG SAID REPRESENTATIONS MADE BY BOTH THE EMPLOYEES AND THE EMPLOYERS TO THE LEGISLATIVE COUNCIL AD HOC GROUP ON THE

THIS ISSUE REVEALED MUTUAL DISTRUST BETWEEN THE TWO PARTIES. WOULD LEAD TO MANY UNNECESSARY DISPUTES BETWEEN THEM AFTER THE IMPLEMENTATION OF THE SCHEME, HE SAID.

POINTING OUT THAT 1985 WAS THE INTERNATIONAL YEAR OF THE YOUTH, HE SAID IT WAS MOST REGRETFUL THAT A BILL OBVIOUSLY SHOWING DISCRIMINATION AGAINST THE YOUNG WORKERS HAD TO BE DECIDED.

HOWEVER, MR PANG HOPED THAT THE AUTHORITIES CONCERNED WOULD MONITOR THE SITUATION AFTER THE BILL CAME INTO EFFECT, AND CONDUCT A REVIEW IMMEDIATELY AFTER ONE YEAR. HE ALSO URGED THE AUTHORITIES TO CONSIDER SETTING UP A CENTRAL PROVIDENT FUND.

THANK ING UNOFFICIAL MEMBERS FOR THEIR COMMENTS AND SUGGESTIONS, THE SECRETARY FOR EDUCATION AND MANPOWER, THE HON NEIL HENDERSON, SA ID ANY NEW SIGNIFICANT PIECE OF LABOUR LEGISLATION WAS BOUND TO RAISE FEARS AMONG EMPLOYERS. +ATTEMPTS TO SEEK AGREEMENT ON THE UNRESOLVED ISSUES AT THIS STAGE WOULD PROBABLY HAVE DELAYED THE ENACTMENT OF THE BILL CONSIDERABLY, AND WE FELT IT WAS BETTER TO PROCEED WITH THE BILL IN ITS PRESENT FORM.+

/+I SHOULD