XN000022-1992-05-20 — Page 4

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WEDNESDAY, MAY 20, 1992

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THIS SAID, WE CANNOT OF COURSE AFFORD TO STAND STILL AGAINST BACKGROUND OF EVOLVING MARKETS AND WE SHALL CONTINUE TO KEEP OUR SUPERVISORY REQUIREMENTS AND METHODS UNDER REVIEW. IT IS IN THIS CONTEXT THAT I INTRODUCED INTO THIS CHAMBER LAST MONTH THE BANKING (AMENDMENT} BILL 1992 WHICH SEEKS TO ENHANCE THE ROLE OF AUDITORS IN THE SUPERVISORY PROCESS. THERE WILL, I AM SURE, BE FURTHER REFINEMENTS WE WILL WISH TO MAKE FROM TIME TO TIME, FOR INSTANCE ARISING OUT OF THE DELIBERATIONS OF THE BASLE GROUP OF INTERNATIONAL SUPERVISORS IN THE WAKE OF THE CLOSURE OF THE BCCI GROUP, BUT THESE SHOULD NOT BE SEEN AS DETRACTING FROM THE OVERALL ROBUSTNESS OF OUR PRESENT SUPERVISORY SYSTEM OR THE HEALTH OF OUR BANKING SYSTEM,

FINALLY, MR DEPUTY PRESIDENT, LET ME TOUCH ON THE QUESTION то WHICH SEVERAL MEMBERS HAVE ALLUDED OF PROVIDING PRIORITY TO SMALL DEPOSITORS IN THE EVENT OF THE LIQUIDATION OF A BANK. WE WOULD EXPECT SUCH AN EVENT TO BE VERY RARE BUT, NEVERTHELESS, WE HAVE CONSIDERED SUCH A PROPOSAL WORTHY OF EXAMINATION AND, AS IDENTIFIED IN CONSULTATION PAPER, HAVE ASKED THE STANDING COMMITTEE ON COMPANY REFORM TO LOOK AT THIS PROPOSAL. THEIR CONSIDERATION IS PROCEEDING IN PARALLEL WITH OUR CONSULTATION ON THE QUESTION OF A DEPOSIT PROTECTION SCHEME AND WE HOPE TO RECEIVE THEIR INITIAL VIEWS SHORTLY.

THE LAW

MR DEPUTY PRESIDENT, THE MOTION BEFORE THE COUNCIL URGES THE ADMINISTRATION TO CONSIDER SERIOUSLY THE INTRODUCTION OF A DEPOSIT PROTECTION SCHEME. WE ARE INDEED CONSIDERING THE MATTER VERY SERIOUSLY BUT, LEST IT BE THOUGHT THAT THE ADMINISTRATION HAS ALREADY MADE UP ITS MIND ON THE SUBJECT, AND I HAVE ALREADY MADE CLEAR THAT THIS IS NOT THE CASE, THE OFFICIAL MEMBERS INTEND TO ABSTAIN WHEN THE MOTION IS VOTED UPON.

THANK YOU MR DEPUTY PRESIDENT.

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SECRETARY FOR EDUCATION AND MANPOWER ON INDUSTRIAL SAFETY

MR DEPUTY PRESIDENT,

AS SEVERAL MEMBERS HAVE RECALLED, THIS COUNCIL PASSED A MOTION ON 1 MAY 1991 URGING THE ADMINISTRATION TO UNDERTAKE A COMPREHENSIVE REVIEW ON OCCUPATIONAL HEALTH AND SAFETY WITH PARTICULAR EMPHASIS ON THREE ASPECTS, NAMELY, HAZARD PREVENTION; DISABILITY ASSESSMENT AND COMPENSATION; AND REHABILITATION. SHORTLY THEREAFTER, A JOINT STEERING COMMITTEE COMPRISING REPRESENTATIVES OF THE HEALTH AND WELFARE BRANCH, THE EDUCATION AND MANPOWER BRANCH AND THE RELEVANT GOVERNMENT DEPARTMENTS WAS ESTABLISHED TO CONDUCT THE REVIEW. THIS WAS COMPLETED AT THE END OF 1991 AND THE JOINT STEERING COMMITTEE'S REPORT AND RECOMMENDATIONS WERE PRESENTED TO OMELCO ON 6 JANUARY THIS YEAR. ALTHOUGH THESE RECOMMENDATIONS MIGHT NOT HAVE GONE AS FAR AS SOME MEMBERS WOULD LIKE, THEY WERE, NEVERTHELESS, POSITIVE AND PRACTICAL STEPS IN THE RIGHT DIRECTIONS. THE ADMINISTRATION HAS SINCE BEEN PURSUING THE RECOMMENDATIONS WITH VIGOUR AND HAS UNDERTAKEN ΤΟ KEEP THE OMELCO PANELS ON HEALTH SERVICES AND MANPOWER INFORMED OF PROGRESS FROM TIME TO TIME.

/I HOPE