TNAG-1520-FCO40-2081-Employment-in-Hong-Kong-1986 — Page 45

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The existing framework

43.

Before a view can be taken on the desirability or otherwise of a CPF scheme for Hong Kong, consideration must be given to the adequacy of existing arrangements. The major benefits of a traditional CP F scheme are provision for retirement, medical care, unemployment and (in the case of Singapore) housing. If there are real needs in these areas in Hong Kong, and if they can be or are being met in other ways, either through Hong Kong's housing programme, non-contributory social security and health care systems and its labour legislation, or through existing savings schemes and provident funds, the case for a CPF is correspondingly reduced, particularly in view of the likely scepticism on the part of a substantial section of the workforce about a centralised contributory scheme providing deferred benefits. The existing framework of provision is examined below.

Housing benefits

44.

Inclusion of housing among the objectives of the Singapore central provident fund,

fund, while the most popular feature of this scheme, necessitates exceptionally high rates of contribution. Hong Kong's massive public housing programme and related Home Ownership Scheme (HOS), which are at present providing accommodation for over 2.5 million people, or

or about 47% of the

the population of Hong Kong, already caters to this need. So far, more than 60,000 flats have been sold under the HOS

HOS and related Private Sector Participation Scheme, and more than 42% of the families who bought these flats were former public housing tenants. The financial institutions are already providing a ready and effective source of mortgage finance for home purchase. The tenants of rented public housing can, moverover, pass on their flats from generation to generation, thereby securing in effect many of the benefits of home ownership.

Social security benefits

45.

Social security, to at least a minimum standard of provision, is a responsibility accepted by Government and this is ensured mainly through non-contributory schemes. These include public assistance, special needs allowance, criminal and law enforcement injuries compensation, traffic accident victims assistance and emergency relief.

public assistance

All

except

are

non-means-tested.

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