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SCMP Editorial

Editorial | More than spending spree needed to break political impasse

  • If the latest HK$10 billion steps represent the new governance style promised by Carrie Lam, the public has every reason to be concerned and she must not lose sight of the need to defuse the current crisis at the core

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Hong Kong Chief Executive Carrie Lam Cheng Yuet-ngor denies the new measures are aimed at dampening the demands of protesters, describing them as a breakthrough in government thinking rather than a U-turn. Photo: May Tse

With doom and gloom still gripping the city, Chief Executive Carrie Lam Cheng Yuet-ngor cannot just sit back and do nothing. That is why she has gone on a surprise HK$10 billion spending spree just weeks ahead of the next government budget. In the absence of effective solutions to end seven months of social unrest, splashing money around is the least our cash-rich administration can do; even when it amounts to embarrassing policy U-turns and fiscal imprudence in some eyes.

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Coming three months after the policy address and four rounds of relief aid, the 10 latest measures inevitably lack the wow factor. In fact, most of them are from the wish lists of political parties and were previously rejected owing to practical difficulties, lack of public consensus or being considered long-term financial burdens. The government has over the past two days had a hard time explaining its change of heart. But the package has received a lukewarm response, even with 1 million poor and elderly people expected to benefit.

The embattled leader had already come under fire for using a wealth of spending initiatives in her policy speech, such as the increased transport subsidy and cash allowance for students, to boost her flagging popularity. She denies the new measures are aimed at dampening the demands of protesters, describing them as a breakthrough in government thinking rather than a U-turn.

If the latest steps represent the new governance style promised by Lam, the public has every reason to be concerned. The measures are said to have been dictated by Lam without consulting the Executive Council and policy bureaus. Some are only goals without a concrete timetable for implementation. Take the 17 statutory holidays for all workers, and whether the government can get businesses and unionists to see eye to eye on this.

No less challenging is to secure the approval of lawmakers in a highly politicised environment. Now that expectations have been raised, failing to deliver will undermine government credibility. This is not the first time for policy decisions to be hastily made and those lacking sufficient detail and a timetable risk becoming unsustainable if future governments do not have enough cash to pick up the bill. Lowering the eligible age for the transport fare concession of HK$2 per ride from 65 to 60 will cost taxpayers an annual HK$1.7 billion. About one-third of the population will be entitled to the subsidy by 2030.

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Lam must not lose sight of the need to defuse the crisis at the core, such as by reconsidering calls for an inquiry into the actions of both police and protesters. Perhaps such a U-turn could help break the political impasse, and a breakthrough would not only help restore order and stability, but also confidence in her governance.

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