XN000022-1987-11-04 — Page 11

WEDNESDAY, NOVEMBER 4, 1987

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"THIS MEASURE CAN ALSO BE COMPLEMENTED BY THE ESTABLISHMENT OF AN INDUSTRIAL ZONE AT THE BORDER, EMPLOYING CHINESE LABOUR UNDER SIMILAR CONDITIONS.

"THESE SUGGESTIONS, THOUGH THEY HAVE ALREADY BEEN RULED OUT BY THE GOVERNMENT, DESERVE SERIOUS RECONSIDERATION.

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"

MR HU ALSO URGED THE GOVERNMENT TO REVIEW ITS DECISION NOT TO SET UP A CENTRAL PROVIDENT FUND.

HE SAID: "THE SUCCESS OF HONG KONG HAS BEEN BUILT ON THE INDUSTRY OF THE LOCAL POPULATION. RETIRED WORKERS ARE ENTITLED TO ENJOY THEIR FAIR SHARE OF THE COMMUNITY'S PROSPERITY.

"THE PROPOSALS TO CHANGE THE CHARACTER OF THE LONG SERVICE PAYMENT SCHEME TO INCLUDE EMPLOYEES RETIRING DUE TO OLD AGE OR ILL HEALTH AND TO IMPROVE THE OLD AGE ALLOWANCE SCHEME WITH ITS AGE QUALIFICATION LOWERED TO 65 IN STAGES BY 1991, I AM AFRAID, ARE NOT A SUBSTITUTE FOR A CONTRIBUTORY PROVIDENT FUND SCHEME. 1+

MR HU SAID THERE WAS NO JUSTIFICATION FOR GOVERNMENT SOCIAL SECURITY SCHEMES TO BE CONFINED TO A NON-CONTRIBUTORY BASIS, PARTICULARLY AS PREVIOUS ARGUMENTS AGAINST THE SETTING UP OF A CENTRAL PROVIDENT FUND, SUCH AS THE UNCERTAINTY OF THE FUTURE OF HONG KONG BEYOND 1997 AND THE INABILITY OF THE ECONOMY TO AFFORD SUCH A SCHEME, WERE NO LONGER RELEVANT.

NEVERTHELESS, MR HU SAID HE WAS HEARTENED BY THE FORWARD-LOOKING PROGRAMMES THE GOVERNMENT HAD PLANNED FOR HONG KONG IN THE YEARS ΤΟ COME. HE WAS CONFIDENT THAT THE OBJECTIVE OF DEVELOPING HONG KONG INTO A SOCIETY WHICH COMBINED A STRONG, EXPANDING AND COMPETITIVE ECONOMY WITH CONCERN FOR THE QUALITY OF LIFE OF ALL ITS PEOPLE COULD BE ACHIEVED.

HE AGREED ENTIRELY WITH THE GOVERNOR'S APPROACH TOWARDS THE HONG KONG-CHINA RELATIONSHIP, COMMENTING THAT IT WAS OF THE UTMOST IMPORTANCE TO FURTHER CULTIVATE AND IMPROVE THE RELATIONSHIP WITH CHINA TO ENSURE HONG KONG'S STABILITY AND PROSPERITY.

"THERE ARE THREE GUIDING PRINCIPLES FOR THIS RELATIONSHIP. NAMELY MUTUAL UNDERSTANDING, MUTUAL TRUST AND MUTUAL RESPECT," HE

SAID.

MR HU EMPHASISED THAT OFFICIAL CHANNELS ALONE WERE NOT ENOUGH TO ACHIEVE THE ABOVETHREE PRINCIPLES AND MORE PRIVATE CHANNELS WERE NEEDED. "ONLY BY CULTIVATING CHANNELS FROM THE TOP TO GRASSROOTS LEVELS CAN WE BUILD UP THE FULL-SCALE RELATIONSHIP WITH CHINA THAT OUR LONG-TERM SUCCESS REQUIRES, HE SAID.

"

ON THE GROWING INVOLVEMENT OF THE PRIVATE SECTOR IN PUBLIC WORKS PROJECTS, MR HU DESCRIBED THIS AS A MOVE "IN THE RIGHT DIRECTION". HE CITED THE ESTABLISHMENT OF THE LAND DEVELOPMENT CORPORATION AND THE PRIVATE SECTOR'S PARTICIPATION IN REALISING TARGETS SET BY THE LONG TERM HOUSING STRATEGY AS "WELCOME SIGNS OF A GROWING PRIVATE INVOLVEMENT IN BUILDING A BETTER HONG KONG".

/ON HOUSING,