XN000022-1995-03-09 — Page 3

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Governor: Well I think what I said this morning in Singapore and what the Chief Secretary said yesterday and what Jackie Willis said this afternoon, yesterday there were a number of debates in the Legislative Council, during the course of which, the Legislative Council voted by quite a substantial margin for an MPF, and then later on, voted by a small margin for an Old Age Pension Scheme, not I think entirely the one we had in mind, plus a substantial and immediate increase in CSSA rates. So the Government in those circumstances has to decide what is the best way forward and where the largest degree of support is. And I think you would agree that the whole community would think we are taking leave of our senses, if we try to follow both courses of action. We have to make a choice and I think it is reasonable to base that choice both on the size of the votes in the Legislative Council and on what we understand is the view of the business community and others. It's not an easy choice, but I think your newspaper and other newspapers are urging the Government to get on with the issue and not just to put it off. You could make out a case in these circumstances, for the Government thinking well. The community's been talking about this for 30 years, maybe we should talk about it for another 30 years. But I don't myself think that that would be responsible. I think the community expects us to act. In trying to implement an MPF, and you've heard what Jackie said this afternoon about the consultancy study and the timing of that, we have to recognise that there is an argument raised about problems faced by some elderly people in need today. In other words, the whole question of CSSA rates and benefit levels comes up. And we've made it clear that we think that should be considered as part of the overall review that we are doing of CSSAs, based, for instance, on the household expenditure survey which we are doing during the year. So I think that is a rational and responsible way forward. I think that most people would hope that we would be as decisive as possible on the basis of the scheme which appeared to have the broadest community support. So that is our position and it will be for others to explain how the Legislative Council was able to vote in so many different and not entirely mutually agreeing fashions.

Question: Looking at the MPF, the SAR Government would not bear responsibility for the MPF unless the Government with China ... the issue.

Governor: Well, we'll look forward to discussing it through the JLG. It's never been any doubt about that.