TNAG-0789-FCO40-993-Development-of-social-policy-in-Hong-Kong-proposed-contribut-1978 — Page 69

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scheme on the lines suggested by the Joint Association

Committee would be minimal as far as General Revenue is

concerned.

Economic Implications

18.

Because of the lack of information concerning the

functioning of Hong Kong's labour market, it is difficult to

provide an accurate analysis of the economic effects of the

various options discussed. However, Hong Kong's economic

viability must depend on its ability to adjust to changing

circumstances.

19.

Hong Kong needs a mobile labour force if the

adjustment mechanism is to operate effectively. To maintain

mobility the following features are desirable in any scheme:

transferability of accrued rights;

(a)

(b)

no encouragement of discriminatory employment

practices.

Each of the options discussed has been examined in respect

of these aspects (paragraphs 11, 12 and 16), and the

conclusion is that, from the point of view of the economy,

the scheme should be compulsory.

Advice Sought

20.

(a)

Honourable Members are asked to advise:

whether a decision in principle should be taken

to introduce one of the social insurance

schemes specified in paragraph 9; and if so,

(b) whether the scheme should include death or

retirement benefits;

(c) which of the three options specified in

paragraph 9 should be adopted;

(a) whether the administrative costs of a

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