XN000022-1989-10-18 — Page 21

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WEDNESDAY, OCTOBER 18, 1989

FUND PAYS OUT $8.4 MILLION IN EX-GRATIA PAYMENTS

* *

APPROVED

31.

A

1989 OF THE

INSOLVENCY FUND HAS ON THE PROTECTION OF WAGES

IN THE

ENDING YEAR

MARCH TOTAL OF 3,091 APPLICATIONS RESULTING IN EX-GRATIA PAYMENTS OF $8.4 MILLION, THE CHAIRMAN PROTECTION OF WAGES ON INSOLVENCY FUND BOARD, THE HON SAID TODAY (WEDNESDAY).

1988-89

ANNUAL REPORT

OF

THE

CHUNG PUI-LAM,

THE TABLING LEGISLATIVE COUNCIL, MR CHUNG SAID THAT DURING THE YEAR THE RECEIVED 3,351 APPLICATIONS WITH CLAIMS AMOUNTING FROM EMPLOYEES IN 239 INSOLVENCY CASES.

THE

BOARD AT THE FUND HAD TO $17.9 MILLION

APPROVED CASES,

THE

HE SAID THAT IN MOST OF WERE ABLE TO RECEIVE ARREARS OF WAGES AND WAGES IN LIEU OF SPAN THAN WAS POSSIBLE FULL AND IN A MUCH SHORTER TIME EXISTING LIQUIDATION AND BANKRUPTCY PROCEEDINGS.

APPLICANTS NOTICE IN THE UNDER

MAINLY THE FUND HAD BEEN ABLE TO ACCUMULATE $159.7 MILLION DUE

BUSINESS REGISTRATION TO THE INCREASE IN THE INCOME FROM THE LEVY ON

OF CLAIMS IN A BOOMING LOW LEVEL RELATIVELY CERTIFICATES AND A ECONOMY IN THE PAST FEW YEARS, MR CHUNG ADDED.

EXTEND

TO TIMES

BY FEE

THE AND AS THE

THE BOARD MET FOUR 'DURING THE YEAR UNDER REVIEW,

THE CHARGING OF

SUPERVISION A EXAMINE, AMONG OTHERS, GOVERNMENT, THE INVESTMENT OF MONIES NOT IMMEDIATELY REQUIRED APPROVED BY THE FINANCIAL SECRETARY, AND SCOPE OF THE FUND TO COVER SEVERANCE PAYMENTS," HE SAID.

A

PROPOSAL ΤΟ

THAT

OR

DE HAD

VERY DISAPPOINTED MK CHUNG SAID THAT BOARD MEMBERS WERE

AS AN ADMINISTRATIVE BEEN CLASSIFIED THE FUND SHOULD HAVE

MUST COSTS FULL ADMINISTRATIVE WHICH COMPENSATORY

A SUPERVISION FEE, AND OF CHARGING RECOVERED

THE THROUGH THYNEFORE URGED THE ADMINISTRATION TO REVIEW THIS POLICY.

FUND

FOR

HE

SAID STOCK HONG

IN THE INVESTMENT OF MONIES NOT IMMEDIATELY REQUIRED, THAT BOARD MEMBERS HAD TAKEN A CAUTIOUS APPROACH IN VIEW OF THE MARKET CRASH IN OCTOBER 1987 AND THE RECENT CONFIDENCE CRISIS IN KONG.

ALSO

NOTED

EXTEND

THAT THE THE

BOARD SCOPE OF

HAD

THE

THE ENDORSED

COVER FUND TO

PENDING A

MR CHUNG GOVERNMENT'S PROPOSAL. TO SEVERANCE PAYMENT UP TO A MAXIMUM OF $4,000 PER APPLICANT, REVIEW OF THE EXTENSION IN A YEAR'S TIME.

FACT THAT TIB ANY AND HENCE

OF OPERATING-

HE SAID THAT THIS ARRANGEMENT WAS BASED ON THE YEARS, ONLY A FEK FOR FUND HAD BEEN IN OPERATION ESTIMATE OF ITS FUTURE FINANCIAL SITUATION ON THE BASIS RESULTS MUST BE TREATED WITH CAUTION, AND THAT A POSSIBLE THE ECONOMY WOULD LEAD TO A GREATER NUMBER OF INSOLVENCIES MORE PAYMENTS FROM THE FUND.

DOWNTURN

AND

OF HENCE

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