XN000022-1995-03-08 — Page 32

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As for any increase in the CSSA payments themselves, Members know already that we are conducting a Review of the CSSA system and payment rates at the moment. This is too important an exercise to allow figures simply to be snatched out of the air. The new rates for the single elderly to come into effect in April will mark a 26% increase in real terms, over and above inflation, compared with the level being paid only 3 years previously. From next month, the average monthly payment to a single elderly person would be about $2,700. It cannot be said that we have been neglecting these payments.

Before we consider increasing them any further, we must take stock of the whole system and ensure needs are being met appropriately and the relative needs of all categories including, for example, young children, the disabled, the single parent and the elderly are all being properly addressed. We must await the outcome of this Review in early 1996 before proposing any changes. I can assure Members that this is not simply a delaying tactic on our part. Although the results of the Review will become available late in the preparations for the 1996/97 budget, we shall do all we can to ensure funding is made available to start to implement the changes recommended in that financial year. The Financial Secretary has agreed that some funds should be reserved for this purpose in advance of the conclusion of the Review.

Mr President, the Administration recognises the spirit behind Mr McGregor's Amendment. We too sincerely wish to do all we can to help the elderly. But the Administration must have regard to what the taxpayer can afford and the implications of any proposal on the financial and economic well being of Hong Kong. We believe that retirement protection and welfare support for the needy are essentially different issues which are better dealt with separately. We therefore oppose this amendment. In doing so, we are also conscious of the important objective of giving Members an opportunity to vote on a clear motion on the mandatory privately managed provident fund system which we consider merits Members' support as a means of providing retirement protection for our elderly citizens.

End/Wednesday, March 8, 1995