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Lawmakers urge inflation relief in budget

Peter So

Lawmakers passed a motion yesterday urging the government to introduce relief measures, amid high inflation, in next month's budget.

They also criticised an earlier remark by the finance chief in his attempt to play down expectations of handouts in the budget.

Financial Secretary John Tsang Chun-wah said on Wednesday that 'giving out sweeteners' would not be the best way to alleviate the inflationary pressure people faced.

Emily Lau Wai-hing, Democratic Party vice-chairwoman, said it was an 'insult' to describe the relief measures as 'sweeteners'.

Albert Chan Wai-yip, of the League of Social Democrats, said what people needed from the government were relief measures to help them to meet basic living standards.

Parties from across the political spectrum demanded that the administration use the huge surplus expected this year and increase regular spending in the budget to tackle poverty problems. Most accounting firms estimate a surplus of HK$60 billion for the full year.

The motion, which is non-binding, lists 16 recommendations for the budget, including setting up a HK$30 billion fund to alleviate pressure from transport-fare increases, and enhancing food assistance to the needy.

Lawmakers also demanded a two-month waiver on rent for tenants in public housing, subsidies on electricity bills for households, a salaries-tax deduction, additional cash for recipients of the old age allowance and a review of the salaries tax regime.

Ronny Tong Ka-wah, of the Civic Party, urged the government to introduce measures to alleviate pressure from rising food prices.

Cyd Ho Sau-lan, of Civic Act-up, said the administration should increase the supply of public housing, to alleviate pressure from increases in property rental prices.

Julia Leung Fung-yee, undersecretary for financial services and the treasury, said inflation for the full year was expected to be 1.7 per cent year on year, up from 1.5 per cent previously estimated.

She said inflation was intensified by the quantitative easing policy by the United States and more expensive imported commodities.

She said the government was concerned about inflation and its impact on people, adding that the financial secretary would consider the proposals from lawmakers and continue to consult the public in drafting the budget.

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