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Opinion | Cash lifeline should not be open to abuse
- With HK$80 billion available under an employment support scheme, only those businesses and workers suffering amid the coronavirus crisis must benefit
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The government has been bombarded with demands and warnings following the announcement of a new round of financial support to help businesses and workers through the Covid-19 pandemic. This is to be expected, given the size of the assistance involved. Officials must seriously address those concerns when seeking the approval of lawmakers to the funding request on Friday.
With more than HK$80 billion up for grabs under the employment support scheme, abuses cannot be ruled out. The media have already raised different scenarios where employers may cheat the system. For instance, there are concerns that those who have recently sacked workers or forced them to take no-pay leave may still receive an allowance according to staffing before the outbreak gathered pace in January. The government has made clear it will not intervene in some situations, and this may have sent the wrong message to unscrupulous bosses.
Given that subsidies have to be paid as quickly as possible, simplicity is essential, but it does not mean fiscal prudence can be sacrificed. It is only fair to guard against abuse and ensure the money goes to those with genuine needs. Officials say there will be sufficient sanctions available to ensure this when the scheme begins, but the right balance must be struck.
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Costing more than HK$137 billion in total, the second round of the Anti-epidemic Fund comprises loan guarantees, wages subsidies and other relief measures. Whereas specific sectors were targeted in the past, the net is cast wider this time. As many as 1.5 million workers are set to benefit from the government’s unprecedented move to pay their wages up to HK$9,000 a month. Commendable as it is, only those under the Mandatory Provident Fund scheme will be covered. Various sectors have since complained of being left out, and one-off subsidies for some industries suffering under social-distancing restrictions are also far from adequate.
With still no sign of an end to the pandemic, Financial Secretary Paul Chan Mo-po has not ruled out digging deeper into the fiscal reserves. The immediate challenge is to address the concerns of different sectors and implement the measures expeditiously.
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