9
The conclusion which can be drawn from these considerations
is that a semi-voluntary scheme would be a much more complex
exercise than a fully compulsory scheme. It was proposed
in the Green Paper that employers with comparable benefits
should be allowed to contract out of the scheme. However,
on reconsideration in the light of GAD's advice and public
comments, it is not thought that contracting out should be
allowed because of the administrative difficulties involved,
though employers should be permitted to modify their own
schemes to take account of their commitments arising out of
a centrally administered scheme, if legally feasible. The
effects of such a proposal on the Civil Service will require
careful consideration before a firm decision can be taken.
Compulsory Contributory Scheme
13.
Under this option, employees would have no choice
about joining the scheme. But the scheme need not be applied
to all employees at once. For example, as in many countries,
it could be introduced in stages beginning with the larger
companies.
14.
The advantages and disadvantages of a compulsory
scheme are in many respects the reverse of those applying
to a semi-voluntary scheme. The reason why the option of
compulsory social insurance has been put to one side by th
Government, although the possibility has been examined at
different times, is that it has been thought that the
political objections (including the possible Chinese
attitude) are too strong. This lay behind the thinking in
the White Paper "Social Welfare: The Way Ahead" in 1973; and
behind the decision last year not to press ahead with a
/compulsory
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