Alexis Tam
The government’s “Non-mandatory Central Provident Fund System” proposal was approved at the first reading yesterday at the Legislative Assembly (AL).
After almost 2 days of heated debate, the bill that proposes the creation of a second tier of social welfare support to the retired population was approved with 25 votes in favor and only 3 against. Lawmakers Pereira Coutinho, Leong Veng Chai and Kou Hoi In voted against.
Pereira Coutinho explained why he and Veng Chai voted against: “Although 10 years have passed, the government continues to have no courage to present a fair regime for all. […] During this long debate, the government failed to provide answers to our questions or a calendar for the implementation of the law at its full extent. So we were forced to vote against,” he concluded.
Although voting in favor of the government’s proposal, lawmakers Song Pek Kei, Si Ka Lon and Chan Meng Kam in a joint vote declaration left some remarks to the government: “To have this bill [approved] is ‘better than nothing,’ still the proposal falls far short of the expectations of the population,” said Song Pek Kei. “We hope that the government can use the three years [during which the regime will be in evaluation] to work and be realistic in order to accomplish the mandatory regime,” she concluded.
Lawmakers Ella Lei, Kwan Tsui Hang and Lam Heong Sam also voted in favor but with final remarks: “The government must present during the discussion in detail, a clear implementation calendar as well as work on convincing the gaming concessionaires and other large companies to join the regime, and a revision on the rules that are not adequate for people that often change job. This needs to be improved,” Ella Lei said, speaking on behalf of the three lawmakers.
Another aspect which requires improvement according to Ella Lei, will be the articulation of the central provident system with the private systems that are already used in most of the private companies.
Angela Leong who also voted in favor, noted that the non-mandatory pension scheme has some polemic matters. However, she said that Macau needs this first step, “otherwise the guarantee for workers [after the retirement] would be ‘sine die’,” she stressed.
Similarly to what happened on Monday, when the proposal was first debated at the AL plenary, several lawmakers noted during yesterday’s debate that it is important to assess the experience gleaned by the application of a similar system in Hong Kong for the past decade.
Chui Sai Cheong stated: “Of course there are also some problems there [in Hong Kong] but we have [from the neighboring territory] a framework that can advance our work, and we can learn from their experience.” He also suggested the acquisition of insurance as a way to solve the issues regarding SMEs. “Maybe the employers should acquire insurance and this insurance fee could then be deducted from their taxes [as tax benefits].”
Secretary for Social Affairs and Culture Alexis Tam, attended the debate for the second consecutive day. “We must understand that the workers are a ‘treasure’ for both the companies and for the MSAR. All the workers contribute to raise our general income,” he said. “Our idea is to start with the non-mandatory system to then gradually move into a mandatory regime. This will provide guarantees for our people to have some dignified living conditions.”
Alexis Tam also mentioned that the government is already investing much of the first level of the Social Welfare system when created the residents individual accounts, stating that this support is accountable for about 85 percent of the money spent on this sector.
The secretary also informed that the government will work to bring the big companies that are currently using private funds to join this system. According to Tam, these company funds are accountable for around 40 percent of the total number of workers suitable to join the system.
Pereira Coutinho
Voting results
No Comments