XN000022-1987-11-05 — Page 24

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THURSDAY, NOVEMBER 5, 1987

SETTING UP

SHE ADDED THAT, MORE IMPORTANTLY, THE OBJECTIVE OF A CENTRAL PROVIDENT FUND WAS TO PREPARE FOR AN EXPECTED GENERAL SOCIAL PHENOMENON BROUGHT ABOUT BY AN AGEING POPULATION.

IT WAS HOPED THAT THROUGH A COMPULSORY SAVINGS SCHEME, THE GROWING POPULATION OF OLD PEOPLE COULD SUPPORT THEMSELVES AND MAINTAIN A REASONABLE LIVING STANDARD UPON RETIREMENT SO AS то RELIEVE AN INCREASING FINANCIAL BURDEN.

REFERRING TO THE THREE REMEDIAL MEASURES PROPOSED IN THE GOVERNOR'S POLICY SPEECH, MRS TAM SAID THAT IMPROVING SOCIAL SECURITY WOULD ONLY BENEFIT THOSE WHO HAD NO STEADY JOBS AND WHOSE PAY HAD BEEN VERY LOW; AN EXTENDED LONG SERVICE PAYMENT SCHEME WOULD ONLY TAKE CARE OF THOSE WHO WORKED A LONG PERIOD FOR THE SAME INSTITUTION AND NOT THOSE WHO CHANGED JOBS: STRENGTHENING THE SUPERVISION OF PRIVATE FUNDS WOULD BE BUT AN ADMINISTRATIVE ARRANGEMENT.

"OBVIOUSLY, TO PLACE THESE THREE MEASURES TOGETHER WITH THE PROPOSAL FOR A CENTRAL PROVIDENT FUND IS TO MISLEAD THE PUBLIC.

"NONE OF THEM SERVE THE SAME TARGET GROUP AS DOES THE CENTRAL PROVIDENT FUND, NOR DO THEY SOLVE THE PROBLEMS OF AN AGEING POPULATION AS A CENTRAL PROVIDENT FUND INTENDS TO DO,' SHE SAID.

"I

AS THE GOVERNMENT WAS AGAINST THE IDEA OF A CENTRAL PROVIDENT FUND, THE ONLY WAY TO ACHIEVE THE SAME OBJECTIVE WOULD BE TO RELY ON THE INITIATIVES OF EMPLOYERS IN THE PRIVATE SECTOR TO SET UP PROVIDENT FUNDS FOR THEIR OWN EMPLOYEES.

BUT THE POLICY SPEECH DID NOT PUT FORWARD ANY PROPOSALS ΤΟ ENCOURAGE EMPLOYERS TO SET UP SUCH FUNDS.

"INSTEAD, GOVERNMENT'S UNILATERAL MOVE TO STEP UP SUPERVISION OF PRIVATE PROVIDENT FUNDS AND EXTEND THE LONG SERVICE PAYMENT SCHEME WILL ONLY DISCOURAGE EMPLOYERS FROM SETTING UP THEIR OWN PROVIDENT FUNDS, SHE SAID.

**

SIMILARLY, THE INCREASE IN EXPENDITURE RESULTING FROM THE EXTENSION OF THE LONG SERVICE PAYMENT SCHEME WOULD ALSO DETER THE EMPLOYERS FROM SETTING UP PROVIDENT FUNDS WHICH WAS A MORE COMPREHENSIVE PROTECTION. AS A RESULT, THE NUMBER OF PRIVATE PROVIDENT FUND SCHEMES IN HONG KONG WOULD BECOME STATIC AND THE LARGE NUMBERS OF WORKERS NOT YET COVERED BY THE PROVIDENT FUND SCHEMES WOULD STILL BE WITHOUT ANY PROTECTION.

THE

OLD

TURNING TO THE OLD AGE ALLOWANCE, MRS TAM POINTED OUT THAT EXISTING SCHEME WAS NON-MEANS TESTED. OLD PEOPLE OVER 70 YEARS WERE ENTITLED TO OLD AGE ALLOWANCE IRRESPECTIVE OF THEIR WEALTH AND INCOME.

/SHE NOTED