XN000022-1994-07-13 — Page 2

WEDNESDAY, JULY 13, 1994

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OLD AGE PENSIONS SCHEME PRACTICABLE: GOVERNOR

THE GOVERNOR, THE RT HON CHRISTOPHER PATTEN, THIS (WEDNESDAY) AFTERNOON SAID THE OLD AGE PENSIONS SCHEME THAT THE GOVERNMENT HAD PUT FORWARD WAS IMPORTANT AND PRACTICABLE FOR A NUMBER OF REASONS.

FI

H

"FIRST OF ALL, IT PROVIDES IMMEDIATE HELP AS SOON AS WE'VE MANAGED TO PASS THE LEGISLATION AND SET UP THE MACHINERY, MR PATTEN SAID.

"SECONDLY, IT'S PRUDENT BECAUSE IT ENSURES THAT THERE IS AN IRON LINK BECAUSE CONTRIBUTIONS PAID IN AND BENEFITS PAID OUT,

"THIRDLY, IT'S AFFORDABLE. WE ARE TALKING ABOUT 1.5 PER CENT CONTRIBUTIONS FROM EMPLOYERS AND EMPLOYEES WHICH GIVEN THE LOW LEVEL OF TAX IN HONG KONG, NOBODY CAN CONCEIVABLY REGARD, I THINK, AS UNREASONABLE."

SPEAKING TO REPORTERS AFTER HIS VISIT TO THE HONG KONG SOCIETY FOR THE AGED'S EASTERN DISTRICT MULTI-SERVICE AND DAY CARE CENTRES FOR THE ELDERLY, MR PATTEN SAID ALMOST 60 PER CENT OF THE WORKING POPULATION OF HONG KONG DID NOT PAY ANY SALARY TAX AT ALL AND ONLY TWO PER CENT OF THE WORKING POPULATION PAID THE TOP RATE OF 15 PER CENT, SO 1.5 PER CENT WAS A VERY LOW FIGURE.

"OF COURSE,

THE GOVERNMENT

ITSELF IS MAKING A MAJOR

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CONTRIBUTION, HE SAID.

"IF YOU ADD UP WHAT WE ARE AT PRESENT PAYING IN BENEFITS WHICH WILL BE PLOUGHING INTO THE SCHEME, OUR CONTRIBUTIONS AS AN EMPLOYER, THE FACT THAT WE'LL BE FOREGOING THE TAX ON THE EMPLOYERS CONTRIBUTIONS AND THE $10 BILLION THAT WE'VE PUT IN TO KICK START THE SCHEME, ALL THAT TOGETHER MEANS THAT THE GOVERNMENT WILL BE MEETING MORE THAN A THIRD OF THE COST OR ABOUT 35 PER CENT.

H

"80, NOBODY CAN CLAIM THAT THE GOVERNMENT ISN'T PART IN TRYING TO MAKE SURE THAT THIS SCHEME IS THE DESERVES TO BE."

PLAYING ITS

SUCCESS IT

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