XN000022-1994-02-02 — Page 30

- 13

WEDNESDAY, FEBRUARY 2, 1994

"IT IS FOR THE TENANTS TO ENSURE THAT THE WINDOWS ARE SHUT GRILLES LOCKED WHEN THEIR FLATS ARE UNATTENDED.

AND

CLIMBING OVER

AS FURTHER MEASURES TO PREVENT BURGLARS FROM EXTERNAL WALLS TO GAIN ACCESS TO ADJACENT FLAT, THE HOUSING DEPARTMENT HAS ERECTED ANTI-BURGLARY GRILLES ON THE FIRST FLOOR GRILLE BLOCK WALLS IN THE LIFT LOBBY AREAS OF LINEAR BLOCKS, HE SAID.

0

AND ADDITIONAL

MANDATORY SAVING SCHEMES NOT RECOMMENDED

掌

*

WHICH

HONG KONG IS CURRENTLY EXPERIENCING ECONOMIC CONDITIONS

EXPERIENCE ELSEWHERE, FOR

DIFFER CONSIDERABLY FROM THE LONG-TERM

EXAMPLE THAT OF THE UNITED STATES.

SHOULD SUCH ECONOMIC CONDITIONS REMAIN UNCHANGED FOR THE FORESEEABLE FUTURE, THAT IS, ASSUMING THAT PRICE INFLATION WOULD REMAIN AT NINE PER CENT AND SALARY INCREASE AT 11 PER CENT, THE ESTIMATE IS THAT A LOW-RISK INVESTMENT PORTFOLIO COULD YIELD A PENSION AS LOW AS 12.7 PER CENT OF MONTHLY SALARY.

THIS WAS STATED BY THE ACTING SECRETARY FOR EDUCATION AND MANPOWER, MR W K LAM, WHEN REPLYING TO A QUESTION BY THE HON HENRY TANG IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

NOT

EXPLAINING THE RATIONALE BEHIND THE GOVERNMENT'S DECISION TO PROCEED WITH MANDATORY SAVING SCHEMES, THE ACTING SECRETARY SAID THAT GIVEN THE PREVAILING ECONOMIC CONDITIONS IN HONG KONG, IT WAS UNLIKELY THAT LOW-RISK INVESTMENT PORTFOLIOS WOULD YIELD MEANINGFUL RETURNS.

"SIGNIFICANT EXPOSURE TO HIGH-YIELD INVESTMENTS SUCH AS EQUITIES WOULD, ON THE OTHER HAND, LEAD TO VOLATILITY AND HIGHER RISK OF INVESTMENT LOSSES, FOR WHICH THERE IS NO VIABLE INSURANCE COVER, SAID MR LAM.

*

BESIDES, AS MANDATORY SAVING SCHEMES TOOK THREE TO FOUR DECADES ΤΟ MATURE, THE BULK OF THE POPULATION WOULD NOT HAVE ANY MEANINGFUL BENEFIT UNDER SUCH SHEMES FOR A LONG TIME TO COME.

HE SAID EVEN AFTER A FEW DECADES, LOW-INCOME CONTRIBUTORS WOULD STILL BE WORSE OFF UNDER MANDATORY SAVING SCHEMES THAN UNDER OLD-AGE PENSION SCHEME, AND THAT HALF OF THE POPULATION WOULD REMAIN UNPROTECTED AS THEY WERE OUTSIDE THE WORKFORCE.

MANDATORY SAVING SCHEMES IMPOSE A HEAVY ADMINISTRATIVE BURDEN ON EMPLOYERS AND EMPLOYEES, WITHOUT THE GUARANTEE OF COMMENSURATE

BENEFITS.

/14

Page 30Page 31