Ease the load on those who help themselves
When Chief Executive Donald Tsang Yam-kuen visited Beijing in December to deliver his work report, Premier Wen Jiabao repeated his open advice that Tsang should resolve the contradictions in Hong Kong. Tsang later explained that he understood the contradictions to be the problems caused by the inflows of 'hot money'. Hong Kong people certainly disagreed with the interpretation, and they understood that they could not expect much from the Tsang administration.
In response to the growing rich-poor gap and social discontent, the administration has been making adjustments to its fiscal philosophy. In recent budgets, there have been provisions to please the public: many Hongkongers have come to expect waivers of public housing rents, extra social security payments, utilities subsidies or other help.
Now, the administration faces the daunting task of removing expectations that every budget has to distribute such 'candies'. In his previous policy address, Tsang invited major business groups to set up a HK$10 billion Community Care Fund for the needy. But, this will not go far in resolving the exacerbating social contradictions.
A small breakthrough in the same policy address was the new transport subsidy to help low-income families, including some of those who fall outside the more narrow eligibility criteria for CSSA. With the establishment of this precedent, the government could further raise the income ceiling to allow more to benefit from the programme, increase the total fund for the subsidy, and even introduce other long-term subsidies for low-income families.
Clearly, the broad issue of support for them deserves serious discussion. In the context of globalisation and Hong Kong's increasing economic integration with the mainland, the gap between rich and poor can hardly be expected to narrow.
Today, the fact that many workers accept low wages rather than social security, in the spirit of self-reliance, merits respect and support. The transport subsidy enhances incomes of low-wage families and strengthens people's motivation to remain employed.
In the same vein, subsidies could be given to help low-income families buy school books and stationery for their children, or for them to take part in extra-curricular activities in schools. This will help provide a better learning environment for the children.
Traditionally, Hong Kong people believe they should help only those who cannot help themselves. If a family member has a full-time job, people think there is no real problem, even if he or she earns a low wage. The concept of working poor has only come to the fore in recent years.
The minimum wage will be implemented in May; the initial estimate is that up to 314,000 workers' wages will rise. But some employers have already tried to adopt measures to mitigate any rise. So fewer people than expected may actually benefit. Hence, more emphasis should be placed on measures to help low-income families.
Joseph Cheng Yu-shek is a professor of political science at City University
