XN000022-1987-05-13 — Page 26

WEDNESDAY, MAY 13, 1987

24

HE QUESTIONED WHETHER HONG KONG WOULD ACCEPT BOTH THE SHORT- TERM DISRUPTION TO THE ECONOMY AND POSSIBLE LOSS OF ITS COMPETITIVE EDGE. AS WELL AS THE LONG-TERM NEGATIVE IMPACT OF A CENTRAL PROVIDENT FUND ON HONG KONG PEOPLE'S ATTITUDES.

HE ALSO DOUBTED WHETHER HONG KONG PEOPLE WERE PREPARED TO LEAVE VERY LARGE AMOUNTS OF THEIR COLLECTIVE SAVINGS IN THE CARE OF OTHERS, SINCE CLEARLY THEY COULD NOT WHOLLY DE ÎNVESTED IN HONG KONG

+IS A CENTRAL PROVIDENT FUND REALLY THE BEST ANSWER TO THE PROBLEM OF FINDING PROTECTION FOR THE ELDERLY OR THE UNEMPLOYED, AND WOULD WE NOT BE MOVING AWAY FROM A POLICY OF PROVIDING ONLY FOR THOSE TRULY IN NEED, TO THE IMPOSITION OF BENEFITS ALSO FOR THOSE WHO DO NOT WISH OR REQUIRE ASSISTANCE?+ HE ASKED.

MR SOHMEN ALSO QUESTIONED WHETHER THE INVESTMENT RETURN ON A CENTRAL PROVIDENT FUND WOULD NECESSARILY BE AS GOOD AS OR BETTER THAN THE YIELD FROM INDIVIDUAL INVESTMENTS OR INSURANCE ARRANGEMENTS.

HE SAID THAT IF ANY OR MOST OF THE ANSWERS TO THESE QUESTIONS WERE IN THE NEGATIVE, THEN HE WOULD SUGGEST THAT A CASE HAD NOT BEEN MADE OUT FOR A CENTRAL PROVIDENT FUND AND THAT HONG KONG SHOULD RESTRICT ANY MOVE FORWARD TO THE AVAILABLE ALTERNATIVES.

THESE ALTERNATIVES INCLUDED THE CONTINUATION OF SOCIAL WELFARE REGIMES ONLY FOR THOSE QUALIFYING, COMPULSORY BUT DECENTRALISED PRIVATE PROVIDENT FUND SCHEMES OPERATING UNDER STANDARD TERMS AND CONDITIONS, OR THE POLITICAL AND LEGAL ENCOURAGEMENT TO FOSTER THE GROWTH OF VOLUNTARY PRIVATE SCHEMES THROUGHOUT THE TERRITORY,

HE SAID HE FAVOURED THE LATTER ALTERNATIVE IN ORDER TO PRODUCE THE DESIRED RESULTS WHILE PRESERVING HONG KONG'S BASIC STRENGTHI THE WILL AND THE DETERMINATION TO SURVIVE AND SUCCEED BY INDIVIDUAL EFFORT.

PRIVATE PROVIDENT FUND SCHEME ADVOCATED *****

THE GOVERNMENT SHOULD ENCOURAGE THE FURTHER DEVELOPMENT OF THE PRIVATE PROVIDENT FUND SYSTEM, THE HON CHUNG PUT-LAM SAID TODAY (WEDNESDAY).

SPEAKING IN THE LEGISLATIVE COUNCIL DURING THE ADJOURNMENT DEBATE ON CENTRAL PROVIDENT FUND, MR CHUNG SAID WHETHER A CENTRAL PROVIDENT FUND WOULD BE SET UP OR NOT HAD SIGNIFICANT AND FAR- REACHING IMPACTS.

/REFORE A .******