|
HONG KONG: Hong Kong Special Administrative Region Chief Executive
Donald Tsang announced a series of short-term relief measures to
alleviate inflation, which involve the spending of HK$11 billion
(US$1.41 billion).
Speaking at the Legislative Council
question-and-answer session on Wednesday, Tsang said he hopes the
proposals help low-income earners meet their daily expenses amid
worsening inflation.
He said the Mass Transit Railway (MTR) board has
agreed to offer half-price concessions to students between certain
stops. The MTR Corp. will announce details soon.
The Hong Kong government will pay another two
months’ rent for most families living in public housing estates on
top of next month’s rent subsidy.
Students receiving Comprehensive Social Security
Assistance and those who will receive student financial assistance
in the following school year will be given a one-off HK$1,000
(US$128) subsidy.
Two extra months’ payment of Old Age Allowance
and an extra month’s standard rate payment of Comprehensive Social
Security Assistance and Disability Allowance will be offered to
recipients.
Meanwhile, the employee-retraining levy will be
waived for two years to relieve the burden of hiring foreign
domestic helpers in middle-income families. Government fees and
charges related to livelihood will also be frozen for one year.
Besides providing half-year electricity charge
subsidies to all households from September, the local government
will offer the subsidies for a further six months, increasing the
total subsidy amount from HK$1,800 (US$231) per household to
HK$3,600 (US$462).
The Hong Kong government has also earmarked
HK$100 million (US$12.84 million) for the Social Welfare Department
to work with non profit-making organizations to provide short-term
food assistance services to needy families.
To enhance price information on daily
necessities the Hong Kong government will help the Consumer Council
expand the exercise to compare and report prices in supermarkets,
shops and markets. It will also liaise closely with the Chinese
mainland to ensure stable and adequate food supplies.
Tsang said the proposals will not fuel inflation
because many are one-off measures, but they will likely cause a
higher fiscal deficit and a fall in financial reserves. However, the
local government’s sizable fiscal surplus last year puts it in the
position to make additional commitments, he said, adding the
proposals will not bring major or long-term implications on public
finances and the operating account.
The Hong Kong government will seek funding
approval from legislators Friday. As the proposed waiving of the
employee-retraining levy involves law amendments the government must
obtain Executive Council approval before their scheduled
implementation in September.
Noting inflation is a global problem, Tsang said
as Hong Kong is an open and free economy, and it is difficult for
the local government to control price increases. Although some
people may not be covered in the proposal, most middle-class and
low-income families should benefit from the measures.
He said the government will formulate long-term
anti-inflation measures and is willing to discuss the issue with
lawmakers.
-- Xinhua
|
