Hong Kong's underprivileged, the elderly and the middle-class have much to cheer as the financial secretary revealed a raft of 11 measures, costing HK$33 billion, aimed at easing the pressure on the needy and alleviating poverty.

The package comes with an unexpected surplus of HK$64.9 billion in the 2012-13 financial year, compared with an earlier projected deficit of HK$3.4 billion as outlined in the budget.

Public housing tenants will enjoy two months' free rent while rates for the whole year will be waived, with a ceiling of HK$1,500 per quarter.

There will also be extra monthly welfare payments for recipients of social security, Disabled Allowance and the Old Age Living Allowance (OALA).

In addition, HK$15 billion will be injected into the Community Care Fund (CCF) to help the underprivileged who are not on government's radar - those who don't pay tax, live in public housing or receive social security payments.

The financial secretary pointed out that the most significant welfare measures coming on stream in the upcoming financial year will be the OALA (HK$6.2 billion), a HK$2,200 monthly subsidy to supplement the living expenses of poor elderly people aged 65 or above; and the community care service voucher pilot scheme for the elderly ($380 million), a four-year program to provide direct subsidy for eligible elderly people to choose to receive home care and day-care services which suit their needs.

For the taxpayer, salaries tax and tax under personal assessment will be reduced by 75 percent, subject to a ceiling of HK$10,000, and each household will receive an electricity subsidy of HK$1,800.

Asked at a press conference why he did not repeat the HK$6,000 cash payout offer for residents two years ago, Tsang said he had done it the last time only after considering the financial situation and related issues.

As a range of permanent and one-off measures have been launched this year to satisfy the needs of various sectors, there is no need to do the same this time around, he explained.

Lawmaker Wong Kwok-hing of the Hong Kong Federation of Trade Unions described the latest measures as inadequate. But, he praised the additional OALA payout - something the government had refused to offer in the beginning.

James Tien Pei-chun, honorary chairman of the Liberal Party, said he was surprised by the CCF injection, and hoped the government would not merely treat assistance to the needy as one-off services, but make it permanent.

Wong Hung, assistant professor in social work at the Chinese University of Hong Kong, said although he is not against the CCF injection, he felt that necessary services should be made permanent to help the needy, citing as an example the rent allowance for people queuing up for public housing and living in abject poverty.

Given the huge surplus, the government should instead pool its resources to start a retirement protection or health insurance scheme or raise the asset limit for OALA recipients, knowing these measures can really help the needy, Wong said.

joseph@chinadailyhk.com

(HK Edition 02/28/2013 page3)