XN000022-1995-05-25 — Page 3

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2.

"In addition, in the first few years, in order to enhance inspection to ensure compliance with the system, to deal with existing ORSO (Occupational Retirement Schemes Ordinance) schemes and to educate the public, the consultants estimate that further expenses of $1 billion will be incurred.

"To demonstrate Government's financial commitment to implementing the MPF system, we consider it appropriate to contribute to the above expenses through a lump sum capital grant of about $5 billion to the Authority, subject, of course, to Finance Committee's approval.

"This together with the interest generated from it and income from modest fees and charges on scheme providers should provide adequate resources for the Authority to operate as a self-standing agency," he said.

End/Thursday, May 25, 1995

Proposals to reform bankruptcy law

The Law Reform Commission today (Thursday) published a report containing its recommendations for an overhaul of the Bankruptcy Ordinance.

The Chairman of the Commission's Sub-committee on Insolvency, Professor Edward Tyler, said the report, containing 116 recommendations for change, covered the major provisions of the Bankruptcy Ordinance and took account of submissions made by the public in response to a consultative document which was issued in July 1993.

Outlining the background of the report, Professor Tyler said there had been concerns expressed by the Official Receiver and practitioners that the provisions of the Bankruptcy Ordinance, which dated from 1914, were both out of date in so far as the requirements of practitioners were concerned and out of touch with the needs of modern society.

He said changes in the law of bankruptcy and the different attitude towards bankruptcy, with greater emphasis on rehabilitation rather than punishment, were introduced in the United Kingdom and Australia in recent years. This made it opportune for bankruptcy law to be reconsidered in Hong Kong.