Coronavirus: small Hong Kong businesses call for HK$6 billion government aid, saying they are ‘left behind’ by relief package
- Education service providers such as tuition centres, as well as salon owners and pet shop operators say they are struggling to stay afloat
- Government adviser argues big businesses with many workers are main targets for aid, as it will be impossible to cover all small and private firms
The Hong Kong government should offer another HK$6 billion (US$771.4 million) to 17 hard-hit industries representing some 300,000 breadwinners in the city who did not benefit from an earlier relief package, sector representatives have said.
On Wednesday, service providers from the education industry, such as playgroups, dance or drawing studios, tutorial centres and sports schools, as well as other businesses including yoga studios, pet shops, laundry stores and salons, formed an alliance calling for more government aid.
The move came two weeks after the administration rolled out a HK$30 billion relief package in an urgent bid to bail out industries hammered by the coronavirus outbreak.
Massive HK$30 billion relief package revealed to bail out struggling industries
More than half of the funding would be used on one-off cash injections to retailers, food and drink service providers, transport companies, students, the arts and culture sector, guest houses and travel agents, while another HK$10.19 billion would centre on the fight against the virus, with support for the Hospital Authority being one example.
“We were left behind by the government, as we are not big companies, but small enterprises who want to survive. But the government did nothing to help us,” said Trevor So Tik-hei from the education sector, spokesman of the newly formed alliance.
Gilbert Wong Zee-chung, who owns nine drawing studios for children, said businesses were seriously affected by the health crisis as authorities had warned parents against bringing their children for classes.
“I have to pay for the shops’ rent and employees’ salaries, totalling half a million a month,” he said. “I have a family to raise, and need money to pay for rent and living costs. I am not sure how long I can survive.”
Education services are not the only ones reeling from the effects of the epidemic. Operators of pet shops and recruitment agencies said some of them had no income for the past month as client numbers dwindled.
“No one is hiring in the last two months,” said Jacqueline Lee, a recruitment agency boss. “I tried to call companies, and no one is picking up. It is also because everyone is working from home. The situation is worse than Sars in 2003.”
Lee was referring to the severe acute respiratory syndrome that ripped through the city in 2003, killing 299 of the 1,755 people it infected.
“If the epidemic continues and no one helps us. I can hardly pay for my flat mortgage and raise my family,” she said.
According to So, a total of HK$5 billion to HK$6 billion, including an HK$80,000 one-off cash handout for small companies and HK$200,000 for bigger companies, would help them to survive the hard times.
Dr Lam Ching-choi, an adviser to the city leader on the Executive Council, said the government could consider a second phase of aid, but detailed discussions were needed on beneficiaries.
“The relief package was rolled out urgently, but it still has some target groups – mainly companies that have lots of employees. And we do not want to see them go jobless, as many of them are from the grass roots,” Lam said.
“But if we help more industries, or smaller private businesses, they may not be those that are seriously in need, and others would be left out.”
