Clash expected in Legco over means test for a new old-age allowance

Chief Executive Leung Chun-ying says the government will stand firm on requiring a means test for a new old-age allowance, defying political parties that warn they may veto the plan if the condition is not waived.

When the Legislative Council reconvenes on Wednesday, one of Leung's first battles is likely to be the debate on a HK$2,200 a month allowance for about 400,000 elderly poor.

Parties from across the political spectrum, including the Civic Party, Democratic Party, Labour Party and the Beijing-loyalist Federation of Trade Unions, say the means test must be waived for those over 70, as for the existing elderly allowance called "fruit money". If the government dismisses this demand, it is likely that the 33 pan-democratic and FTU lawmakers in the 70-seat legislature will veto the proposal.

Leung, who will mark his 100th day in office on Monday, stressed that there was no room for concession.

"We'll stand firm [on the allowance proposal]. We'll explain to Legco … why this is in the best interest of Hong Kong … in the long term," he said.

The administration plans to seek funding approval from Legco's Finance Committee on October 26 and launch the scheme by next year.

A government source said about one-sixth of government spending, or HK$43.5 billion, went on welfare for the elderly this year, including "fruit money" and social security.