XN000022-1995-07-27 — Page 13

Reconsideration of other schemes

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Some Members believe that adjourning the debate, and thus allowing the Bill to lapse, will provide a further chance for reconsideration of the Old Age Pension Scheme (OPS), a Central Provident Fund (CPF), or some hapless hybrid of the two. They are wrong. If this Bill lapses, there is the real possibility that the community will not have any retirement protection system at all. We do not intend to revisit the OPS, which found little support within the community. As for a CPF, our views remain unchanged. It is not an option for Hong Kong. It offers no freedom of choice, tends to produce low returns on investment, and would result in an over-concentration of funds under one authority. We hold this view both in respect of a CPF on its own and a CPF artificially put together in an uneasy relationship with any other form of retirement protection.

Those Members who yearn for a CPF must know that it cannot work without Government funding, which most definitely will not be forthcoming.

I would urge any Member who feels inclined to support the motion to adjourn in the hope that it may lead to a revival of the defunct OPS, or even a CPF, to think again. It will not happen.

The MPF Schemes Bill

Mr President, I am surprised to hear some Members claim that the Bill is hollow, lacks substance, and should not be discussed further, while others say that the debate should not proceed as the Bill is complicated, and they have had inadequate time to examine it. I disagree with both opinions, and wonder whether in fact Members are talking about the same piece of legislation!

From the outset of our consideration of the MPF, it has been our stated intention to deal with the primary legislation first, then the secondary legislation later. This is in keeping with the community's wish to see a mandatory retirement protection system established as soon as possible. As I said in this Council during the debate on 8 March and I quote, "We will also start drafting legislation and come back to this Council with the primary legislation. The timeframe: we will try to get the initial report from the consultants by the end of April and to come to this Council with a primary law before the end of this session if Council endorses my motion this afternoon." Early enactment of the primary legislation would also provide adequate time for trustees and the insurance and fund management industries to introduce the necessary products, and for employers and the self-employed to arrange for retirement schemes to meet their obligations.