• Sun
  • Dec 21, 2014
  • Updated: 12:00am
CY Leung policy address 2014
NewsHong Kong

Help for poor as Chief Executive reveals HK$10b spending spree in policy address

Chief executive unveils HK$3b-a-year allowance for low-income families among raft of measures, but middle class will have to shoulder burden

PUBLISHED : Thursday, 16 January, 2014, 7:11am
UPDATED : Thursday, 16 January, 2014, 8:56am

Boosting land supply, helping the poor and enhancing Hong Kong's long-term economic competitiveness were at the core of Chief Executive Leung Chun-ying's policy address yesterday.

After criticism that his maiden speech 12 months ago boasted grand visions and slogans but little detail, Leung unveiled initiatives that will cost taxpayers more than HK$10 billion a year.

Expensive measures include the HK$3 billion-per-year Low-Income Working Family Allowance, which will benefit 710,000 people from more than 200,000 poor families.

Also, the value of health care vouchers for the elderly will be doubled to HK$2,000 per year at a cost of HK$1.1 billion.

While Leung's generosity to the working poor drew applause from advocates for the underprivileged, his policy blueprint offered little relief for the middle class, who shoulder the lion's share of the tax burden.

There were also questions about how the money for relief measures would be funded.

A government-appointed working group is warning that the city's healthy surpluses will soon be replaced by a structural deficit, with its HK$734 billion in reserves drying up in 20 years.

Ivan Choy Chi-keung, a political analyst at Chinese University, said he feared Leung's spending proposals would trigger conflict between poor and middle-class Hongkongers and lead to increased tensions between the chief executive and the rich.

"The middle class might feel that the administration is not only ignoring them, but also issuing cheques that taxpayers will pay," Choy said.

Leung told media executives after his speech that the government's big fiscal surplus would more than cover the new spending, but that the government would manage public finances prudently. The budget surplus was HK$64.8 billion last year.

Asked if he was trying to rebuild his flagging popularity with sweeteners, Leung said he would have made himself more popular if he had given cash to everyone - an apparent reference to the HK$6,000 handout to permanent residents three years ago.

"We are trying to spend the money on the needy this time, but not handing out cash to everyone," he said.

Leung added that if he had announced a handout for "political purposes", he was sure he would "get more applause".

In his speech, Leung officially endorsed the target of building 470,000 flats in the next decade, set by a high-powered government-appointed panel last year.

Leung said 80 sites would be rezoned for housing from green belt or government, institutional and community use, enough to build 89,000 flats. That meant sites had now been identified on which to build 485,000 flats. Critics said the target could slip if development was opposed by residents or district councils. A construction industry manpower shortage could also delay work.

Leung said sustained economic growth was needed to address issues such as poverty, housing and Hong Kong's ageing population. He also proposed the creation of an innovation and technology bureau, 19 months after his original plan to restructure the government - which would have included the bureau - fell victim to filibustering.

But he spoke only briefly on political reform, the subject of a five-month consultation and massive public debate ahead of the 2017 election for chief executive. Leung said the government was committed to achieving universal suffrage.

Additional reporting by Fanny W. Y. Fung


C.Y. Leung's policy address in brief

  • Rezone 80 more sites to build 89,000 flats
  • HK$3 billion a year in handouts for more than 200,000 low-income families
  • Build a 130-hectare artificial island east of Lantau
  • HK$800 million in residential care service vouchers for elderly
  • Chinese language help for ethnic minority students and school leavers
  • Set up an innovation and technology bureau
  • Allow development south of Pok Fu Lam for subsidised housing
  • Build city's first traditional Chinese medicine hospital
  • Fund colorectal cancer screening for over-50s


Main policy proposals at a glance

Welfare and poverty alleviation

  • New Low-Income Working Family Allowance. It will cost H$3 billion and help more than 200,000 families
  • Additional rent assistance for Comprehensive Social Security Assistance recipients

Elderly and children

  • About 3,000 vouchers worth HK$800 million to be issued to the elderly to help pay for care services
  • Purchase of places in Shenzhen old people's homes to ease waiting list for government-funded homes
  • Value of health care vouchers for the elderly to rise from HK$1,000 per year to HK$2,000
  • Extra 360 subsidised after-school childcare places
  • Age limit to rise from six to nine for babysitting services under the Neighbourhood Support Child Care Project
  • Disabled children to be eligible for HK$2 concessionary fares on public transport and the concessionary fare scheme for the disabled and elderly will extend to the green minibus network


  • New Chinese-language curriculum for ethnic minority children to help integration in local schools
  • A means-tested grant of HK$15,000 per year for an unlimited number of needy students studying at mainland universities from 2015-16 to 2018-19
  • Value of kindergarten vouchers to rise from HK$17,510 a year per child to HK$20,010 in the financial year 2014-15 and HK$22,510 in 2015-16
  • Additional 2,120 subsidised places for degree programmes inside or outside Hong Kong
  • HK$200 million earmarked for the Partnership Fund for the Disadvantaged to launch after-school learning programmes

Economy and labour

  • A new 130-hectare artificial island "metropolis" to be built east of Lantau
  • Creation of an Innovation and Technology Bureau
  • New body to develop value-added maritime services
  • Promotion of Hong Kong's legal and dispute resolution services
  • Four-year pilot scheme to provide allowances for apprentices in industries such as construction

Housing and land

  • Rezone 80 sites to residential use from green belt or government, institutional or community use. This will make room for 89,000 flats
  • Lift development moratorium in the southern part of Pok Fu Lam to provide 11,900 more public rental housing and Home Ownership Scheme flats
  • Two new hostels in Mong Kok and Jordan to provide temporary housing for 1,000 18- to 83-year-olds.  Develop the Northeastern New Territories and Hung Shui Kiu, extend Tung Chung New Town and convert four former agricultural sites in North District and Yuen Long to increase housing supply
  • Provide an additional 430,000 square metres of office space and 6,800 flats at Kai Tak
  • Study the potential of underground development for commercial use in Tsim Sha Tsui West, Causeway Bay, Happy Valley and Admiralty/Wan Chai


  • New HK$1 billion fund to promote recycling
  • A green station to be built in each of Hong Kong's 18 districts to collect recycling items
  • HK$1 billion earmarked to turn restored landfill sites into recreational areas
  • Faster chargers for electric vehicles to replace the 100 existing chargers
  • The chief executive and principal officials will switch to electric cars on a trial basis. About 100 more electric vehicles will be bought for government use

Health care

  • City's first traditional Chinese medicine hospital to be built in Tseung Kwan O. Integrated treatment pilot scheme to be launched in three hospitals
  • Major general hospital planned for Kai Tak development
  • Colon cancer screening for the over-50s
  • Case-management programme for patients with severe mental illness to expand to all districts
  • Permission for overseas doctors to take internship programmes at public hospitals after sitting local licensing examination




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This article is now closed to comments

Why is assistance to the poor called "Spending Spree"?
The dictionary defines "spree" as unrestrained activity.
nice policy address; CY Leung has a clear vision and well-thought through ideas
It is the responsibility of the Government to look after the people who had fallen on hard times. Many of them are people who contributed to Hong Kong, and many of them were from the middle class who had fallen on hard times. Do not forget that many people wants to find jobs but nobody wants to hire them. I know of someone who was working in middle management who lost his job two years ago and not able to find a job as he is 60. This is the best policy address we have ever seen from a Chief Executive of Hong Kong.
Approximately 16,585 words in CY Leungs Hong Kong Policy address yesterday....
Total number of words dedicated to discussing HK's air pollution?
Do you know that many employers will pay as little as they could. Why do you think we have to come up with a minimum wage policy? Do you know that there are employers who will fire a female employee after she report for duty after taking maternity leave? Do you know that for a family of three the total CSSA payment the family will get from our Social Welfare Department (including rent allowance) is HK$12,000? Imagine how much is left after paying rent? Can you imagine what it is like for people to live on CSSA? Do you know that there are people who are between the ages of 50-60, who are not old enough to retire, and are well experienced managers, however, nobody will hire them as employers as employers wants to save money Do not forget the resistance the government from employers when they were setting up minimum wages.
When are we going to teach people how to fish instead of just giving them fish? If we teach them how to fish they can feed themselves. At the same time if their income is not sufficient to take care of themselves despite having a full time job then there is something drastically wrong with our salary system or the cost of living or both. As an employer I pay above market prices for the jobs people have in our company as I feel they deserve it for the work they put in. In contrast to the most richest employers (incl. The Government) who pay meagre salaries or preferably outsource jobs in order not to look bad themselves. Let the employers pay a decent salary then the middle class does not have to cough up more tax dollars and put a sustainable housing policy in force where normal working people can afford to buy an apartment instead of only the happy few. Those who then still need assistance to survive (the elderly, the physically or mentally disabled) can be taken care of by society en large (the tax payers) as any civilized country would do with pride and happiness


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