Filibustering could cut HK$20 billion out of economy, Paul Chan says

Government infrastructure spending could be slashed by almost 30 per cent in two years if pan-democrats continue to block government funding requests in the legislature, Secretary for Development Paul Chan Mo-po has warned.

Pan-democratic lawmakers have vowed to use their majority on the Legislative Council's public works subcommittee to block funding requests, except those that affect people's livelihoods, to press their claims for a more democratic system for the 2017 chief executive election. Members of the Finance Committee have also attempted to filibuster some controversial measures.

But writing on his blog, Chan said yesterday that the filibustering could have a significant impact on the construction sector. And, because the sector accounts for about 7 per cent of gross domestic product, that could have a knock-on effect on the wider economy.

In the previous legislative year, he noted, lawmakers approved just 13 new capital works projects, worth HK$3.6 billion. That was compared with HK$90 billion the year before.

"In the current legislative year, we plan to put forward more than 80 new capital works proposals totalling HK$71 billion for approval," Chan wrote. "This includes the 21 funding requests held up by filibustering.

"If the situation continues … we estimate that government expenditure on infrastructure projects could fall by more than HK$20 billion after two years."