Letters | In boosting revenue, Hong Kong should not be borrowing to get by

Readers discuss concerns about government bond issuance, childcare risks, and why the city needs stricter speed limits

Hong Kong economy

Letters

Published: 11:30am, 1 Feb 2024

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The Hong Kong government’s fiscal deficit has exceeded the financial secretary’s full-year estimate of HK$100 billion. Furthermore, the actual deficit for the financial year is expected to exceed HK$200 billion, including about HK$65 billion issued in green bonds.

The Hong Kong government started to issue green bonds in 2019, and plans to issue more over the decade. The appendix to the most recent budget contains a five-year fiscal forecast that notes the revenue from the green bonds, but does not seem to calculate the interest costs involved.

The green bonds denominated in foreign currencies have maturities of five, 10 and 30 years. The redemption and interest payment dates for some of these bonds extend beyond the five-year forecast range, significantly reducing transparency in, and thus scrutiny of, government spending. We urge the government to extend the forecast period and provide clear disclosure of the bond costs in the coming budget.

While the issuance of green bonds is aimed at promoting the development of related markets, there are concerns about the need for continuous issuance over a decade and it also raises questions about whether Hong Kong has entered a phase of borrowing to get by.

It is also important to point out that in recent years, land sale revenue has been calculated differently, with projections using a 15-year average instead of a 10-year average.

The government needs to address whether extending the average is intended to avoid unfavourable figures; the next forecast should reflect the reality, considering the six unsuccessful land tenders in the past year.

As Hong Kong is faced with a structural deficit arising from an ageing population and increasing government expenditure, we strongly propose that the government cut expenses, such as by prioritising the development of the Northern Metropolis over the Lantau Tomorrow Vision reclamation project, and re-evaluating the scale of land reclamation depending on the economy.

Raymond Ho, convenor, Momentum 107

How to enhance childcare while keeping children safe

On January 27, a 33-year-old nanny recruited under the government’s Neighbourhood Support Child Care Project was arrested on suspicion of abusing a nine-month-old baby, who remained in a critical condition in Tuen Mun Hospital as of January 29.

Home-based carers play an important role in supporting families. At Save the Children Hong Kong, we agree with the recommendations for strengthening the training and professionalism of carers. We would like to provide further recommendations for enhancing the childcare system.

Firstly, responsible organisations could provide shadowing opportunities, such that less experienced carers can observe more experienced ones and be supervised by them. Conducting regular check-ins with parents and receiving feedback from them also helps organisations support carers to meet expectations.

Unscheduled visits by more experienced carers can help in assessing less experienced carers’ practical abilities. Organisations should establish a robust placement mechanism that monitors the matching of children with carers and considers carers’ experience and skills.

Secondly, responsible organisations could have hotlines, supervisors and such, which or whom carers can contact for ad hoc advice and support when facing uncertain situations.

Thirdly, organisations that recruit, train and match carers with families should establish a code of conduct that the carers must follow, and should share these expectations with the families in order to ensure accountability. Organisations should also monitor carers to ensure they comply with these standards.

Every child deserves to grow up safe and supported. We recommend that all child-facing organisations establish a child safeguarding policy and a code of conduct to mitigate risks that can arise through their services. Implementing robust policies and training staff to keep children safe would help prevent such incidents from happening in the future.

Carol Szeto, CEO, Save the Children Hong Kong

Stricter speed limits for pedestrian safety

I refer to the report, “Suspect held over pregnant woman killed crossing road” (January 13).

Many of the people at pedestrian crossings are seniors, the unemployed and domestic helpers. They could be weary individuals running errands or elderly retirees roaming around as they pass time between libraries, parks and museums.

Many are scared stiff about being penalised for neglecting the traffic lights; they face a hefty fine of HK$2,000 (US$256) if they cross the road even when there is no incoming traffic. This penalty is being imposed to protect people from road accidents, but how effective is it?

We have much to learn from the recent death of the pregnant pedestrian who was crossing the road with care but was hit by a truck that allegedly failed to brake.

This is a problem the Transport Department must address. Motorists seldom signal when they make a turn; worse, the turn could become deadly when they go faster to beat the traffic lights. This cause of accidents should be immediately rectified by a new set of speed limits.

The Transport Department must limit the speed at which motorists make a turn, to make pedestrian crossings safe and protect lives.

Lal Daswani, Tsim Sha Tsui

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