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Following is a question by the Hon Martin LEE and a reply by the Secretary for Economic Development and Labour, Mr Stephen Ip, in the Legislative Council today (May 3):
Question:
As Hong Kong's population is aging, will the Government inform this Council whether:
(a) it has studied the impacts of extending the retirement age on the local community, economy and labour force, including those on the Mandatory Provident Fund system and the civil service; if so, of the findings; if not, the reasons for that; and
(b) the Task Force on Population Policy will make any recommendations regarding the extension of the retirement age?
Reply
Madam President,
The SAR Government has all along attached great importance to the issue of aging population in Hong Kong.
An aging population is expected to impact on the local community, economy and labour force. Unless our productivity improves significantly, the persistent shrinkage of the labour force relative to the overall population may bring about a slowdown in economic growth and hence a possible reduction in government revenue. At the same time, there will also be an increasing demand for resources to take care of an ever-growing elderly population, thereby increasing the expenditure on social security assistance, welfare and health care services.
At present, there is no mandatory retirement age in Hong Kong. Individual employers or establishments can work out the appropriate retirement age for their staff which may form part of the employment terms agreed between employers and employees. In view of the concerns arising from an aging population, last year the Central Policy Unit conducted an internal study on the policies and practices in selected countries in respect of retirement age and their applicability to Hong Kong. The study covered various policy areas including the retirement arrangement of civil servants and the Mandatory Provident Fund (MPF) schemes. The study report is being examined and considered by the relevant bureaux and departments.
To develop a set of population policies which suits Hong Kong﷿s long-term social and economic development, family values and wider community interests, the Government set up the Task Force on Population Policy (TFP) in 2002. The TFP report, released in February 2003, set out a number of recommendations on measures pertaining to admission of talents, education and manpower development, elderly and welfare policies. These recommendations have been implemented or adopted as on-going measures by the relevant bureaux and departments.
Building on the work of the TFP, the Government will review its population policy from time to time to see if it fits in with the changes in the demographic trends of Hong Kong. For instance, the Quality Migrant Admission Scheme will be introduced in June this year to attract the best talents throughout the world to settle in Hong Kong for future development. This will enhance the overall quality of our population. Moreover, the Government will continue to review the arrangements for the MPF System.
In view of the importance of population policy and related issues such as aging population and in order to facilitate public discussion among people from different sectors of the community, the Commission on Strategic Development (CSD) has agreed to accord priority to discuss the matter. At its meeting held on April 24, the Committee on Social Development and Quality of Life of the CSD discussed the issues of promoting parenthood and enhancing the quality of our population. The Committee will discuss other population issues at its next meeting, including aging population and eligibility for and portability of social benefits.
Moreover, the Council for Sustainable Development will arrange a 䩕public engagement process蒅 for the various population policy issues in the second quarter of this year with a view to soliciting public opinion on the relevant subjects. Taking into account public feedback, the Council will make recommendations to the Government on enhancing population potential for a sustainable future. The Government will consider the recommendations from the Council in its formulation of a long-term strategy on population policy.
Ends/Wednesday, May 3, 2006
Issued at HKT 15:50
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