Tax rises 'could pay for health'

A legislator criticised the authors of the Harvard report last night for excluding tax increases as a possible option for health-care financing.

Dr Tang Siu-tong of the Hong Kong Progressive Alliance said he had reservations about the 'political reality' he said the report's authors believed Hong Kong faced.

The report highlighted Article 107 of the Basic Law as a political parameter which restricts the possible options for a major overhaul of the health care system.

The mini-constitution stipulates that the SAR should keep spending in line with revenue, strive to achieve a fiscal balance, and avoid deficits.

Dr Tang said the report had noted the need to slash public spending in other areas such as education and environmental protection if the Government was to continue its existing method of financing public medical costs.

'Provided that the public understands the consequences of injecting more funds on public health care and that they are willing to sacrifice the opportunity cost for other policy areas in return for an increase in funding for public health care, then this political restriction will no longer exist,' he said.