XN000022-1986-07-30 — Page 12

THE HON MARTIN LEE CHU-MING,

THE HON NGA SHIU-KIT,

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WEDNESDAY, JULY 30, 1986

MR JACOBS REPLACED THE HON SIR JOHN BREMRIDGE, AS A MEMBER OF THE COMMITTEE ON MAY 31, 1986.

A COMPLETE LIST OF THE SELECT COMMITTEE'S WILL BE BOXED AT G.I.S. THIS EVENING.

RECOMMENDATIONS

ļ

INSOLVENCY FUND REPORT TABLED IN LEGCO

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MORE PROMPT PAYMENTS SHOULD HAVE BEEN MADE IF DETAILED, UPDATED WAGES AND EMPLOYMENT RECORDS HAD BEEN KEPT BY INSOLVENT EMPLOYERS AND MADE READILY AVAILABLE FOR VERIFICATION BY THE LABOUR DEPARTMENT.

THIS WAS STATED BY THE HON K.C. CHAN WHEN HE TABLED THE ANNUAL REPORT OF THE PROTECTION OF WAGES ON INSOLVENCY FUND BOARD FOR 1985-86 IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

NEVERTHELESS, MR CHAN STATED THAT DURING THE YEAR UNDER REVIEW, ABOUT 41 PER CENT OF THE 5 890 APPLICANTS RECEIVED PAYMENT WITHIN TWO MONTHS AND ANOTHER 40 PER CENT WITHIN TWO TO THREE MONTHS FROM THE DATE OF WINDING-UP OR BANKRUPTCY PETITION.

HE SAID APPLICANTS, IN THE EVENT OF INSOLVENCY OF THEIR EMPLOYERS, WERE GUARANTEED THE MAXIMUM PREFERENTIAL PAYMENT OF $8 000 UNDER THE COMPANIES AND BANKRUPTCY ORDINANCES.

+UPON RECEIPT OF PAYMENT FROM THE FUND, THE APPLICANTS TRANSFERRED THE IR RIGHTS TO PREFERENTIAL PAYMENT TO THE EXTENT OF THAT AMOUNT TO THE FUND BOARD WHICH INITIATED ACTION TO RECOVER PAYMENT BY FILING PROOF OF DEBT WITH THE OFFICIAL RECEIVER OR PRIVATE RECEIVERS AS APPROPRIATE, HE ADDED.

MR CHAN SAID DURING THE YEAR, THERE WERE 8 159 APPLICATIONS WITH WAGE CLAIMS OF $23.6 MILLION FROM EMPLOYEES OF 321 APPARENT INSOLVENCY CASES. AMONG THEM, 5 890 APPLICATIONS WERE APPROVED WITH EX-GRATIA PAYMENT TOTALLING $13.5 MILLION.

ON THE FINANCIAL POSITION OF THE FUND, HE NOTED A SURPLUS OF $39.5 MILLION COMPRISING $16.5 MILLION AS INCOME PRIOR TO APRIL 19, 1985 AND $23 MILLION AS SURPLUS FROM 1985-86.

/+THE SUBSTANTIAL