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HK$3b extends MPF top-up to the jobless

Paggie Leung

An extra 400,000 poor to benefit from HK$6,000 boost for pension accounts

Financial Secretary John Tsang Chun-wah yesterday announced extra spending of more than HK$3 billion to help the city's poor.

In addition to the HK$125 billion package of tax cuts, subsidies and investment in his maiden budget unveiled in February, Mr Tsang has announced one-off payments of HK$6,000 into the Mandatory Provident Fund accounts of low-income workers who are temporarily unemployed.

People who worked any time within the year before the budget announcement on February 27 and were earning not more than HK$10,000 will get the payment, if they have MPF accounts or pension schemes set up under the Occupational Retirement Schemes Ordinance.

The announcement was made a day after the Macau government declared it will pay 460,000 permanent and 67,000 non-permanent citizens 5,000 patacas and 3,000 patacas respectively. The government said the money was intended to counter the impact of inflation and represented a sharing of the fruits of prosperity.

Speaking during the Legislative Council's debate on the budget, Mr Tsang said the extra payout was in response to calls from lawmakers.

'I am happy that the plan [to pay HK$6,000] is widely recognised,' Mr Tsang said. 'I also noticed that some legislators suggest extending the scheme to cover more people.'

The original plan earmarked HK$8.5 billion for about 1.3 million low-income workers who were employed at the end of February. The extension of payments will benefit an extra 400,000 people. Mr Tsang said the money was expected to be paid into the relevant accounts in this financial year.

Angel Wong Wai-lam, 27, who stopped working part-time in a shop in June to take vocational courses, was glad she would benefit. She was earning less than HK$8,000 a month.

'Although I can't use the HK$6,000 injection before my retirement, it's good to have the money saved for future use,' she said.

Mr Tsang also said a one-month rent waiver would be extended to include 300 elderly folk living in Housing Society group B rental estates.

Confederation of Trade Unions organising co-ordinator Mung Siu-tat welcomed the extra spending but said low-income workers who earned less than HK$10,000 in any month since March last year should be covered.

'Some workers have unstable incomes,' he said. 'They may earn slightly more than HK$10,000 this month but just a few thousand another month.'

Sze Lai-shan, a Society for Community Organisation community organiser, said the government should adopt more immediate policies to address the urgent needs of the poor.

'The economic situation has changed rapidly in the last few months,' she said.

'Prices are surging and there is no indication that soaring inflation will slow down. More immediate measures are needed and the government should be as generous as the Macau government.'

But Mr Tsang said people should not get too pessimistic about inflation. He said the government and Beijing would ensure food supplies.

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