XN000022-1991-07-10 — Page 8

WEDNESDAY, JULY 10, 1991

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CENTRAL PROVIDENT FUND NOT FEASIBLE: SEM

THE PRACTICE FOR THE GOVERNMENT TO REQUIRE ALL EMPLOYERS AND EMPLOYEES WHO ARE ENGAGED IN ECONOMIC ACTIVITIES TO JOIN THE CENTRAL PROVIDENT FUND OR OTHER FORMS OF RETIREMENT SCHEMES HAS MORE DISADVANTAGES THAN ADVANTAGES.

THIS WAS STATED BY THE SECRETARY FOR EDUCATION AND MANPOWER, HON JOHN CHAN, WHEN WINDING UP THE MOTION DEBATE ON CENTRAL PROVIDENT FUND IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

THE

HAVING SAID THIS, MR CHAN SAID HE DEFINITELY DID NOT INTEND NEGATE THE VALUE OF A PROVIDENT

TO

FUND.

WAS SAID.

"IN FACT, UNDER CERTAIN CIRCUMSTANCES, A CENTRAL PROVIDENT FUND VIRTUALLY A GOOD WAY TO GET PREPARED FOR RAINY DAYS, MR CHAN

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THE SECRETARY SAID THE GOVERNMENT WOULD KEEP ON ENCOURAGING THE PRIVATE SECTOR TO SET UP RETIREMENT SCHEMES OR PROVIDENT FUND SCHEMES.

THE

IT WOULD ALSO CONTINUE ITS EFFORTS ΤΟ IMPROVE LABOUR LEGISLATIONS, ESPECIALLY THE LONG SERVICE PAYMENT SCHEME, SO THAT EMPLOYEES, NO MATTER WHETHER THEY WERE DISMISSED OR RETIRE, COULD A LUMP SUM OF MONEY.

EI

GET

"I BELIEVE THE GOVERNMENT'S DECISION ON CENTRAL PROVIDENT FUND AND THE RELATED ISSUES IN 1987 WERE CORRECT.

J

AFTER TODAY'S DEBATE, I CANNOT SEE ANY NEW ARGUMENTS THAT WOULD SUFFICE TO CHANGE THESE DECISIONS, MR CHAN SAID.

THE SECRETARY SAID THE LEVEL OF PROVIDENT FUNDS AND PENSIONS SET UP BY PRIVATE ORGANISATIONS HAD BEEN GOING UP DURING THE PAST FEW YEARS.

+

AT THE END OF 1987, THE INLAND REVENUE DEPARTMENT APPROVED 5,469 RETIREMENT SCHEMES. UP TO THE END OF APRIL THIS YEAR, THE NUMBER OF SUCH SCHEMES ROSE TO 10,370.

MOREOVER, ACCORDING TO A SURVEY CONDUCTED BY THE CENSUS AND STATISTICS DEPARTMENT, THERE WERE 8,351 PRIVATE ORGANISATIONS PROVIDING RETIREMENT SCHEMES FOR 168,000 EMPLOYEES, OR 26 PER CENT THE WORKFORCE IN 1987.

ייד

זין

OF

LAST YEAR, THE NUMBER OF ORGANISATIONS. OPERATING SUCH SUIPMES ROSE TO 19,211 COVERING 707,000 EMPLOYEES OR 33 PER CENT OF PAK WORKFORCE.

•

WHEN DECIDING NOT TO SET IT A CENTRAL PROVIDENT FUND, MR CHAN THE GOVERNMENT WAS ALSO WELL AWARE OF THE NEEDS OF THE RETIRED PEOPLE AND THE ELDERLY,

SAID

/THEREFORE, HE

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