The proposed Mandatory Provident Fund (MPF) is in danger of collapsing after a Democratic Party decision to oppose additional funding at a crucial Legislative Council vote tomorrow. The fate of the scheme hangs in the balance as top Government officials prepare to lobby politicians today to approve a $25 million grant enabling the MPF Office another 13 months to complete its work. Leading Democrats yesterday warned they would scuttle the scheme and push for a Singapore-style Central Provident Fund where the Government - rather than the private sector - manages and controls its assets. Democrats economic spokesman Dr Huang Chen-ya said: 'We would rather not have any pension scheme if it is not able to benefit the public. 'We are not going to approve the funding for the MPF Office and we don't mind if the scheme is unable to be set up.' The Democrat's decision to oppose funding for the MPF Office means minority parties will decide if it continues or is moth-balled. A senior government official said a rejection of the scheme would waste the millions of dollars already spent in preparatory work. He warned it would be a set-back for the fund management industry that had been encouraged by the Government to play a central role in formulating the scheme's structure. 'It is not only that money spent will be wasted,' the official said. 'The people who will suffer the most are the three million working-class people for whom the scheme is designed to help the most. 'If they were so concerned about its structure then they should not have voted to set it up in the first place. 'They are contradicting themselves.' The funding vote will be made by the establishment sub-committee of the Finance Committee. The Democratic Party's seven members on the sub-committee are expected to vote as a bloc and represent nearly one-third of the total. Dr Huang said: 'This is in line with the party's principle that we are, and always have been, opposed to the setting up of the MPF scheme.' Dr Huang said the scheme would be of more benefit to the territory's investment community than to its citizens. 'The fund managers and the insurance companies are concerned about the launch of the MPF scheme while the working population have never said they want it,' he said. 'Under the MPF scheme, the employee will need to pay for the service charges of the individual fund managers, which will be quite expensive - especially for those who work in a small company.' He said Democratic Party members were also concerned about the security of the scheme's assets despite repeated assurances from the Government about safeguards. The Hong Kong Federation of Trade Unions, which has three members on the sub-committee, is in talks with the Government on the issue. Vice-chairman Chan Yuen-han said her three members on the sub-committee would vote in its favour only if they were confident of the security of the scheme's assets.