Lam Woon-kwong says it is hard to justify another waiver of property rates out of the government’s huge fiscal surplus
GARY.CHEUNG@SCMP.COM
PUBLISHED : Tuesday, 19 January, 2016, 9:19pm
UPDATED : Tuesday, 19 January, 2016, 9:19pm
Lam Woon-kwong says pumping money into the Community Care Fund and Lotteries Fund is a better way of helping the less well-off in Hong Kong. Photo: David Wong
Executive Council convenor Lam Woon-kwong has urged the financial secretary to scrap unreasonable handouts, such as waivers of property rates and public housing rents, in his forthcoming budget.
In an interview with the South China Morning Post, Lam said the government should instead inject cash into the Community Care Fund and the Lotteries Fund to help those in need.
Lam said it was hard to justify waiving property rates again because they were paid by homeowners who had benefited from the surge in the value of their flats in recent years.
“The well-off people benefit the most from a rates waiver,” he said.
John Tsang Chun-wah delivers his budget on February 24.
PwC, a leading accounting firm, forecast earlier this month a surplus of HK$95.5 billion in the current fiscal year, thanks to a boost from stamp duty. It would be more than double the HK$36.8 billion previously forecast by the government, and the highest since the 2007-08 financial year.
Lam also opposed waiving rents for public housing tenants as rents for most public rental flats were lower than HK$2,000 a month.
“It’s much lower than the monthly rent for a subdivided flat in Sham Shui Po, which costs nearly HK$5,000,” he said, adding that the government should strengthen fiscal discipline.
In recent years the administration has offered several handouts to the public, including waivers of rents for public housing tenants, an extra allowance for people on social security and a waiver of property rates.
Although I am ideologically against granting sweeteners, in real politics some goodies may be needed to secure the passage of the budget in the Legislative Council
LAM WOON-KWONG
The financial secretary offered a HK$34 billion one-off relief package in last year’s budget. The sweeteners included a waiver of property rates, which would cost the government HK$7.7 billion this financial year, and a rent-free month for public housing tenants, which would cost the government HK$1.1 billion.
Lam said he noted the political pressure facing the finance chief if the government pocketed a fiscal surplus of HK$60 billion to HK$80 billion.
“Political parties, including those from the pro-establishment camp, would fire salvos against the government if John Tsang’s budget speech is seen to be too mean,” he said.
“Although I am ideologically against granting sweeteners, in real politics some goodies may be needed to secure the passage of the budget in the Legislative Council.”
Lam, who served as secretary for civil service and director of the Chief Executive’s Office before quitting the government in 2005, said the government should use its fiscal surplus in a smart manner.
He proposed pumping cash into the Community Care Fund, which was set up in 2011 to provide relief for the poor, and the Lotteries Fund, which finances social welfare services.
http://m.scmp.com/news/hong-kong/politics/article/1903293/scrap-handouts-wealthy-hong-kong-homeowners-and-help-poor
