XN000022-1993-04-22 — Page 12

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THURSDAY, APRIL 22, 1993

GOVERNOR WHAT THE GOVERNMENT SETS FOR ITSELF, AS THE HONOURABLE LADY KNOWS, IS A 15 PER CENT RETURN ON AVERAGE NET ASSETS. THAT IS À TARGET WHICH IT SETS ITSELF BECAUSE IT'S THE SORT OF TARGET WHICH IS SPECIFIED IN MOST SCHEME OF CONTROL AGREEMENTS AND IT'S THE SORT OF TARGET WHICH WOULD BE REGARDED AS REASONABLE IN THE PRIVATE SECTOR.

THAT FOR A NUMBER OF REASONS, THE GOVERNMENT DOESN'T VERY OFTEN MEET TARGET,

OR RATHER THE COMPANIES CONCERNED DON'T VERY OFTEN MEET THAT TARGET BECAUSE THE PUBLIC SECTOR TENDS TO TAKE A GREATER ACCOUNT OF SOCIAL AND ECONOMIC FACTORS THAN WOULD BE THE CASE IF IT WAS A PURELY PRIVATE SECTOR OPERATION. BUT IF WE WEREN'T TO SET FOR OURSELVES A SORT TARGET, A RETURN ON ASSETS, I DON'T THINK THAT WE WOULD HAVE THE

то WHICH IS NECESSARY IN OF

ORDER MANAGEMENT DISCIPLINE

RUN OUR I THINK UTILITIES AND OUR INFRASTRUCTURE AS COMPETENTLY AS POSSIBLE.

TUNNEL WHEN THE COUNCIL TAKES A DECISION, AS IT DID ON AN ISSUE LIKE

IT NEEDS TO THINK OF SOME OF THE CONSEQUENCES, FEES,

NOT ONLY FOR FUTURE INFRASTRUCTURE INVESTMENT, BUT ELSEWHERE TOO.

MR LAU CHIN-SHEK (THROUGH INTERPRETER) : THANK YOU. EARLIER ON THE LEGCO HAS PASSED A MOTION URGING THE ADMINISTRATION TO SET UP A CPF FOR RETIREES. MR GOVERNOR COULD YOU TELL ME WHAT CONCRETE MEASURES WILL ADMINISTRATION TAKE TO GIVE EFFECT TO THIS MOTION AND IF THE MOTION IS NOT CARRIED OUT AND THE COMPULSORY RETIREMENT SCHEME IS STILL SUBMITTED TO LEGCO ONLY TO SEE IT BEING AMENDED TO BECOME A CPF, WOULDN'T YOU THINK THIS IS A WASTE OF TIME?

GOVERNOR : I ENJOYED A MEETING I HAD WITH THE HONOURABLE MEMBER AND ONE OF RIS COLLEAGUES. I THINK IT WAS A MEETING WHICH PRETTY WELL COVERED THE WATERFRONT IN TERMS OF POLITICAL OPINIONS IN THIS COUNCIL BUT THE ISSUE WHICH, OF PROVISION FOR RETIREMENT WHICH BOTH HONOURABLE MEMBERS ADDRESSED WAS ONE WHICH HAD UNITED THEM. IT IS GOING TO BE ONE OF THE BIGGEST ISSUES WHICH THIS COUNCIL HAS TO COME TO CONCLUSIONS ON IN THE NEXT MONTHS OR YEARS. IT HAS VERY PROFOUND SOCIAL CONSEQUENCES BUT IT ALSO HAS VERY LARGE ECONOMIC CONSEQUENCES AS WELL. WHETHER YOU'RE TALKING ABOUT THE TAX PAYER TAKING ON LARGE CONTINGENT LIABILITIES OR WHETHER YOU'RE TALKING ABOUT MOVING EVEN FURTHER TOWARDS SCHEMES QUARANTEED OR PAID FOR BY THE TAX PAYER, I THINK THAT THE ISSUES RAISED ARE SO IMPORTANT THAT IT WOULD BE UNWISE FOR THIS COUNCIL OR FOR THE EXECUTIVE TO ADDRESS THEM BEFORE WE HAD MADE EVERY POSSIBLE EFFORT TO BUILD AS MUCH COMMON GROUND ACROSS THE COMMUNITY, INCLUDING BETWEEN GROUPS REPRESENTING EMPLOYERS AND GROUPS REPRESENTING EMPLOYEES.

ON

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WE ARE AT PRESENT LOOKING AT ALL THE COMMENTS THAT WE RECEIVED THE PROPOSALS THAT WERE PUT OUT FOR DISCUSSION A FEW MONTHS AGO. THAT WILL TAKE NECESSARILY SOME TIME, NOT BECAUSE WE'RE TRYING TO LOSE THE SUBJECT IN THE SHRUBBERY BUT BECAUSE THE SUBJECTS ARE HUGELY COMPLICATED AND HAVE AS I SAID EARLIER SUBSTANTIAL SOCIAL AND ECONOMIC CONSEQUENCES. BUT THE POINT WHICH THE HONOURABLE MEMBERS BOTH MADE то ME IS ONE OF THE ISSUES THAT WE HAVE TO ADDRESS.

MR PRESIDENT SUPPLEMENTARY'S?

MR STEPHEN CHEONG.

/MR STEPHEN