XN000022-1986-03-26 — Page 35

WEDNESDAY, MARCH 26, 1986

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+ IT IS A COMPREHENSIVE AND STABLE SOCIAL SECURITY SYSTEM WHICH CARRIES NO RISKS WHEN INDIVIDUAL ENTERPRISES WIND UP AND WORKERS CAN CONTINUE TO ENJOY THE SECURITY WHEN CHANGING TO ANOTHER JOB,+ HE SAID.

MR TAM SAID THAT OF THOSE PEOPLE WHO WERE AGED OVER 60, SOME 40 000 RELIED ON PUBLIC ASSISTANCE AND SOME 220 000 RECEIVED AN OLD AGE ALLOWANCE.

IT WAS PREDICTED THAT BY THE YEAR 2000 AS MANY AS 900 000 PEOPLE, OR ABOUT 14 PER CENT OF THE POPULATION, WOULD BE AGED OVER 60, HE SAID.

+WE CANNOT TAKE THIS LIGHTLY, HE STRESSED.

IN ADDITION, HE SAID 80 PER CENT OF GOVERNMENT EXPENDITURE ON SOCIAL SECURITY IN THE NEXT FINANCIAL YEAR WOULD BE SPENT ON THE OLD AGE ALLOWANCE AND PUBLIC ASSISTANCE, AND AS MANY AS 63 PER CENT OF THE CASES RECEIVING PUBLIC ASSISTANCE INVOLVED OLD PEOPLE.

MR TAM POINTED OUT THAT IN THE ABSENCE OF A COMPREHENSIVE RETIREMENT SECURITY SYSTEM, THE GOVERNMENT WAS SHOULDERING AN INCREASINGLY HEAVY FINANCIAL BURDEN IN LOOKING AFTER THE ELDERLY.

THEREFORE, HE SUGGESTED THE GOVERNMENT SHOULD TAKE ACTION NOW, OTHERWISE TAXES OR FEES WOULD HAVE TO BE INCREASED ON A LARGE SCALE IN ORDER TO PAY FOR FINANCIAL COMMITMENTS IN SOCIAL SECURITY.

+ THE ESTABLISHMENT OF A PROVIDENT FUND SCHEME WILL ENABLE EMPLOYERS AND EMPLOYEES TO JOINTLY SHARE THE BURDEN OF FINANCING THE LIVELIHOOD OF EMPLOYEES AFTER RETIREMENT.

+THE EMPLOYEE'S INCOME WILL THUS BE REDISTRIBUTED AT VARIOUS STAGES OF HIS LIFE AND IT WILL GIVE THE EMPLOYEE A STRONGER SENSE OF BELONGING,+ HE SAID,

ON THE SUBJECT OF PROVIDING ASSISTANCE FOR INDUSTRIAL DEVELOPMENT, MR TAM SAID THE GOVERNMENT SHOULD HELP INDUSTRY BY PROVIDING A BETTER INFRASTRUCTURE COVERING IMPORTANT ELEMENTS: EXPERTISE, TECHNOLOGY AND CAPITAL.

HE BELIEVED THAT IF THE GOVERNMENT COULD MOBILISE MORE RESOURCES FOR STUDY AND FOR LAUNCHING PROGRAMMES IN THESE THREE AREAS, IT WOULD CERTAINLY BENEFIT INDUSTRIAL DEVELOPMENT AND THUS THE PROSPERITY OF HONG KONG.

MR TAM NOTED THAT INDUSTRY AT PRESENT FACED KEEN COMPETITION AND IMMENSE PRESSURE FROM NEIGHBOUR ING REGIONS, AND HE DOUBTED THAT THE GOVERNMENT'S POLICY OF NON-INTERVENTION IN INDUSTRY WAS STILL APPROPRIATE.

/+TRIS APPROACH