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Ambrose Leung

Jimmy Cheung

Political parties, the business sector and civic groups yesterday urged the government to raise taxes and government charges in stages after the consensus reached to stagger pay cuts for civil servants over two years.

Critics also warned it would be necessary to abandon planned cuts in welfare spending if the government was to avoid being seen to favour certain groups.

Executive Councillor James Tien Pei-chun, chairman of the Liberal Party, which has long pushed for a direct 6 per cent cut in civil service pay, said the decision meant it would take longer to solve the budget deficit.

And he warned the government against targeting 'vulnerable groups' in society without first cutting expenses.

'The government has to be fair to everybody, not go easy on the civil servants while chopping others such as the business sector and the elderly with one stroke. If it wants to chop [civil service pay] in stages, everything else should be chopped in stages.'

Mr Tien said Financial Secretary Antony Leung Kam-chung should now review his plans for the Budget next month.

'I think he should now create a Budget for three years rather than one and reconsider what to freeze, what to cut and what to raise to be fair,' he said.

Another Exco member, Tsang Yok-sing, leader of the Democratic Alliance for Betterment of Hong Kong, also said proposed cuts in welfare spending and tax rises should be looked at again.

But Democrat Cheung Man-kwong said the consensus was the most peaceful way to end the row, and it would help address the deficit problem.

The cross-party coalition in Legco generally welcomed the deal, saying it would smooth the legislative process because it was reached by negotiation between officials and unionists.

But Shih Tai-cho, vice-chairman of the civic group SynergyNet, said the concessions had undermined government authority.

'When you fight, or when you are fierce enough, as in the case of civil servants, you get relatively mild treatment. On the other hand, social security payments are [expected to be] cut by 11 per cent in one go. People will think it's unfair.'

Ho Hei-wah, of the Society for Community Organisation, condemned the government for using 'double standards' when dealing reasonably with civil servants but at the same time proposing to cut welfare spending.

HSBC chief economist George Leung Siu-kei also questioned the decision to cut pay in stages. 'There is a chance that the budget of other items, such as health and welfare, will have to be tightened even more.'



Taxes and fees should also rise in stages, argue critics