XN000022-1987-07-01 — Page 8

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4

WEDNESDAY, JULY 1, 1987

"IT IS FELT THAT THE FUND CAN WELL AFFORD TO BE MORE BY EXTENDING THE PROTECTION OF WAGES IN LIEU OF NOTICE TO ONE WAGES INSTEAD OF THE PROPOSED ONE VEEK'S WAGES.

AS "THE SECOND PROPOSITION IS THAT,

GENEROUS MONTH'S

COVERAGE

OF

THE FUND'S $8,000) IS L'ONSISTENT WITH ARREARS OF WAGES (FOUR MONTHS' WAGES OR THE LIMITS SET FOR PREFERENTIAL TREATMENT L'NDER THE BANKRUPTCY AND WAGES IN LIEU COMPANIES ORDINANCES SO TOO THE LIMIT OF COVERAGE FOR OF NOTICE SHOULD BE THE SAME AS LAID DOWN FOR A PREFERRED CREDITOR THE EVENT OF AN EMPLOYER'S BANKRUPTCY," HE SAID.

IN

HE COULD SEE

מתי

AS FOR THE FIRST PROPOSITION, MR PAGLIARI SAID THE FORCE OF THE ARGUMENT THAT AS THE FUND'S RESERVES WERE INCREASING,

WORKERS IT SHOULD BE ABLE TO EXTEND THE PROTECTION IT GAVE TO THE

THE SIZE AREAS NOT PRESENTLY COVERED. HE ADDED THE FIGURES QUOTED AS

SLIGHTLY OVERSTATED WERE OF THE FUND

THEY WERE BASED ON ASSESSED SURPLUS OF THE FUND'S OPERATION WITHOUT THE FINAL ACCOUNTS.

AS

AN

HE SAID WAGES ROSE EVERY YEAR AND THE NEEDED TO BE AVAILABLE TO MEET THE EVERY YEAR.

AMOUNT SAME NUMBER OF

OF FUNDS CLAIMS

WHICH

KENT

UP

BE WILL "THIS TREND WILL INEVITABLY (ONTINUE AND WITH EVERY ADDITION TO THE FUND'S COVERAGE," HE EXPLAINED.

EXACERBATED

WE ARE HE SAID.

WORRYING

"1 NOTE THAT MR TAM YIU-CHUNG CONSIDERS THAT UNDULY ABOUT A POSSIBLE DOWNTURN IN THE ECONOMY,

MR PAGLIARI SAID ECONOMIC BOOMS WOULD NOT CONTINUE FOREVER, BUT THE NEED TO PROTECT WORKERS 1 AGES FRON THE CONSEQUENCES OF EMPLOYERS' INSOLVENCIES WOULD CONTINUE FOREVER.

THEIR

++

I INTRODUCED THIS "IT IS THEREFORE ESSENTIAL, AS I SAID WHEN

RESERVE DURING BILL, THAT THE FUND BUILDS UP A SOUND

THE ECONOMY'S GOOD YEARS, SO THAT IT CAN PROTECT WORKERS' INTERESTS WHEN HARD, HE SAID.

TIMES ARE

BASED ON FUND WAS OBLIGATION WHICH AN INSOLVENT EMPLOYER

COMMENTING ON THE SECOND PROPOSITION, HE SAID IT WAS INSOLVENCY A FALSE PREMISE THAT THE PROTECTION OF WAGES ON EVERY SET UP TO CATER FOR MIGHT HAVE TO HIS EMPLOYEES.

FUND

MR PAGLIARI SAID IT HAD NEVER BEEN THE INTENTION THAT THE

DUE TO THEM ON THE SHOULD PAY WORKERS, IN FULL, ALL THAT MIGHT BE INSOLVENCY OF THEIR EMPLOYERS.

TO ENSURE THAT COURTS TO

DETERMINE WINDING-UP AND FOR

NO

THE

"THE FUND IS INTENDED TO BE A SAFETY NET: EMPLOYEE SUFFERS HARDSHIP WHILE WAITING FOR THE HIS SHARE OF THE PROCEEDS OF HIS EMPLOYER'S RECEIVER TO REALISE THE ASSETS.

H

/IN THE