Hong Kong fourth wave: wage subsidies ‘not on agenda’ of government, No 2 official says, citing financial strain

Chief Secretary Matthew Cheung says focus is on hardest-hit businesses and controlling the health crisis
Government cannot afford another round of wage subsidies after second tranche of HK$80 billion Employment Support Scheme

Coronavirus pandemic

Natalie Wong

Published: 1:46pm, 19 Dec 2020

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A fresh round of wage subsidies to ease the pressure on residents hit hard by the Covid-19 pandemic is “absolutely not on the agenda” of the Hong Kong government, the city’s No 2 official has said, citing the financial strain on the administration.

Chief Secretary Matthew Cheung Kin-chung was on Saturday addressing accusations that the government’s latest HK$6.4 billion (US$820 million) in relief funding for struggling businesses had neglected employees or those who had been laid off.

Cheung told a radio programme the administration could not afford another round of wage subsidies after the second tranche of the HK$80 billion Employment Support Scheme ended this month.

Chief Secretary Matthew Cheung. Photo: Jonathan Wong

“Wage subsidies are absolutely not on our agenda, considering the financial strain and economic situation as a whole,” he said. “The key is not whether we will hand out more subsidies. As long as we cannot control the outbreak, the subsidies won’t help much.”

Hong Kong is battling a fourth wave of Covid-19 infections, with 109 cases recorded on Saturday.

Cheung also ruled out the possibility of introducing emergency aid for the unemployed, saying it would take “a very long time” to prepare.

Hong Kong fourth wave: smoother quarantine process vowed, isolation in 2 days

In a policy U-turn, the administration announced this week it would inject another round of financial aid targeting industries battered by tightened social-distancing rules, such as restaurants and beauty parlours.

On Saturday, Cheung rejected calls to extend the scheme to other struggling industries, including aviation and retail. “We have to focus on targets to help the hardest-hit businesses … We need enough ammunition to cope with challenges in the future,” he said.

Cheung also said the government would not impose penalties on employers who laid off workers or closed their businesses after getting the subsidies.

Steven Kwok, chairman of the Labour Party, stood inside a transparent box at a protest over a lack of cash handouts on Saturday. Photo: Facebook

On Saturday morning, representatives from the Labour Party and the League of Social Democrats protested outside government headquarters in Admiralty, demanding the administration provide one-off cash subsidies to those who were sacked or had their pay cut due to the pandemic.

Steven Kwok Wing-kin, chairman of the Labour Party, stood inside a transparent box that covered the top half of his body at the protest. “[Chief Executive] Carrie Lam Cheng Yuet-ngor regards grass-roots workers as transparent, as all the money goes to bosses,” he said.

Sports coaches also expressed frustration with the scope of the latest round of subsidies. Lee Yuet-man, chairman of the Hong Kong Recreation and Sports Professionals General Union, said 75 per cent of the city’s coaches were left out, as the government only released subsidies to those registered with the National Sports Association.

He said he hoped to see the scheme extended to cover gym, yoga and ice-skating coaches affected by the closure of facilities.

High-ranking civil servants take their oaths of allegiance. Source: Information Services Department

Three days after the first batch of high-ranking officials took oaths vowing to uphold the city’s mini-constitution, Cheung also said the government would announce next month new requirements for the rest of the civil service to “confirm in writing” their allegiance.

“[The practice] is akin to employees supporting the development of a company, instead of opposing everything,” he said. “Please do not look at this through coloured lenses.”

Government workers who refused to swear allegiance might affect their chances of promotion and transfer, Cheung added.

Under the national security law enacted in June, public officers have to “confirm in writing or take an oath” to uphold the Basic Law and swear allegiance to the city.

This article appeared in the South China Morning Post print edition as: More wage subsidies are not on agenda, top official says