TNAG-1520-FCO40-2081-Employment-in-Hong-Kong-1986 — Page 28

CONFIDENTIAL RA (Labow 77

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RECEIVED Copy No..

- 7 OCT 1986

MEMORANDUM FOR EXECUTIVE COUNCIL

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odon Taken

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For discussion

on 7 October 1986.

THE IMPLICATIONS OF ESTABLISHING

CENTRAL PROVIDENT FUND

Introduction

The purpose of this memorandum is to advise Members of the results of a reassessment of the arguments for and against the introduction of a Central Provident Fund (CPF) in Hong Kong and to seek advice on the method of consultation.

Background

2

A

report was submitted to this Council for information in August 1977 which concluded that the balance of economic, social and political arguments did not favour the establishment of a CPF in Hong Kong. Since then, there has been intermittent but growing interest in a CPF and the issue has been raised on a number of occasions in the Legislative Council. In particular, the

the Christian Industrial Committee and groups associated with it have been pressing very hard for the establishment of such a fund and have made it clear that they intend to maintain this pressure. In support of their proposals they have conducted a limited survey which they claim shows a high degree of worker support for a contributory scheme.

3

In response to this growing level of interest, the Administration has conducted a review of the arguments for and against the establishment of a a CPF. The imminent completion of this review was referred to by the Secretary for Education and Manpower in the course of the 1986 Budget Debate.

The review paper

4

The Administration's review paper at the Annex is in three parts.

The first part, which examines the arguments for and against a CPF, is structured as follows :-

(a)

(b)

Introduction (paragraphs 1

-

3);

Characteristics of statutory provident funds (paragraphs 4 ·

9);

CONFIDENTIAL