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"We already have a very good track record in regulating retirement protection scheme under the Occupational Retirement Schemes Ordinance (ORSO).

"The Ordinance requires all retirement scheme to be funded properly; the assets of a retirement scheme to be maintained separately from those of the employers, and to be used only for the purposes of the scheme; the financial position of a retirement scheme to be subject to the annual scrutiny of an independent auditor; and employees to have the right to seek information about their scheme.

"In addition, we shall be looking at tightening up control over fund managers."

Mrs Chan added that the concept of a Central Provident Fund would not be an option in Hong Kong.

She said it offered no freedom of choice, tended to produce low returns on investment, and would be very difficult to operate with the 20,000 existing occupation retirement schemes in Hong Kong.

End/Friday, February 24, 1995

Expenditure on education and manpower up 15%

The Government will spend $31,250 million in recurrent expenditure on education and manpower policies in 1995-96, an increase of 15.6% over the current financial year.

This represents 22% of the Government's total recurrent expenditure in 1995-96.