Govt Determined To End MPF Clause: Carrie Lam

Chief Executive Carrie Lam said on Tuesday that her administration is willing to put in more resources for the scrapping of the controversial MPF offsetting mechanism, saying that it is time to get it done.

Speaking before the weekly Exco meeting, Lam said she understands that the latest plan is welcomed by workers, and the government will work hard to convince employer representatives as well.

Sources said the matter was to be discussed at the Executive Council meeting.

Lam said she's not ready to reveal any details of the proposal, but she said the government is taking on the task as quickly as possible.

The government is reportedly going to increase its support for employers when it abolishes the controversial mechanism which allows them to dip into employees' MPF accounts to make long-service and severance payments.

Announcing his budget in February, Financial Secretary Paul Chan said the government would sponsor employers to the tune of HK$15 billion. This figure, sources told RTHK, would go up to HK$17.5 billion.

The transitional subsidised period, sources said, would be extended to 12 years, two more than originally proposed by the government.