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Redefining Hong Kong panellists say social issues can break political deadlock

Panellists at SCMP debate say retirement, housing and healthcare matters could unite lawmakers

Amy Nip

While there are worries about filibustering, the non-cooperation movement and controversial political reform all affecting the handling of livelihood issues in the Legislative Council, Joseph Cheng Yu-shek, chair professor of public policy at City University, said it could be reversed.

If the government was sincere in examining a serious social issue such as housing, health care, or the optimal amount of fiscal reserves, it would catch the attention of people and reduce differences between the pro-establishment and democratic camps, he said.

"I am rather pessimistic about the outcome of political reform … but I want both sides to think, if the bill is vetoed, how does Hong Kong go forward?" he said.

Appointing people across the political spectrum to advisory committees which discuss social issues would also bridge the divide and ensure smoother policy implementation, he added.

Chua Hoi-wai, chief executive of the Hong Kong Council of Social Service, agreed advisory bodies which involve both pro-establishment and pro-democrat camps may smooth affairs in Legco.

He highlighted how legislators reacted differently to the introduction of old-age living allowance and low-income working family allowance. The former had a rocky ride as lawmakers argued whether there should be a means test, while the second - which was discussed by the Commission on Poverty beforehand - went a lot more smoothly.

Retirement protection will be a major issue to be discussed this year, as the government plans a public consultation on the topic before the end of this year.

It will be the first since Professor Nelson Chow Wing-sun recommended the establishment of a universal pension scheme after he completed a government-commissioned study on retirement protection in June last year.

The present political system cannot give the government legitimacy to do any major social or economic reforms.

As a result, the Financial Secretary John Tsang Chun-wah's budget speech was filled with short-term promises instead of solutions to long-term issues, Chua said.

Franklin Lam Fan-keung, the founder of non-profit policy think tank HKGolden50, said the government missed the opportunity to use its burgeoning surplus to resolve social problems.

"The government has generated HK$600 billion of fiscal reserves in the last five years. With that, it can build 600,000 public housing rental units or increase retail space by 1.5 times," he said.

He dismissed the budget giveaways, saying it would make more sense to spend the money on long-term investments.

Agnes Chan, managing partner of Ernst & Young - which sponsors the Redefining Hong Kong debate - said the government could broaden the tax net for sustainable revenue via a goods and services tax.

There can be concession tax rates for start-ups and a super tax deduction to encourage research and development in the private sector, she added.

Chan said the goods and services tax would cover Hong Kong residents and the 60 million inbound travellers. To ease fears of living costs going up, a cash allowance to the needy or cutting back existing taxes could be considered.

This article appeared in the South China Morning Post print edition as: 'Social issues can break deadlock'
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