************************************

Following is a speech (English only) by the Secretary for Education and Manpower, Mrs Fanny Law, in resuming the second reading debate of the Employment (Amendment) Bill 2001 in the Legislative Council today (June 27):

Madam President,

As the Secretary for Financial Services pointed out two weeks ago during the motion debate on "Reviewing the Mandatory Provident Fund System", in 1995 and 1998 when the Mandatory Provident Fund Schemes Ordinance and its subsidiary legislation were enacted, there has been thorough discussion on the offsetting arrangement. The views of employer and labour union representatives were very different in this regard but the arrangement provided under the existing legislation is the result of the agreement reached after the discussion. It has balanced the interests of employers and employees.

I note the concern expressed by labour representatives on the existing offsetting arrangement. If Members agree that there is a need, we are prepared to review the arrangement at an appropriate juncture after the full implementation of the MPF System.

Madam President, the amendment we are proposing in this Bill is purely technical in nature. It does not concern or touch upon the overall offsetting policy. It is necessary to plug a loophole in the Ordinance. I urge that Members approve the Bill as soon as possible.

End/Wednesday June 27, 2001

NNNN