HK$5,000 vouchers: Hong Kong residents need another round of handouts, Democratic Party says, calls for pupils to be included

Democratic Party says another handout is needed because HK$5,000 is not a large sum and can be spent quickly
Party also urges government to allow elderly residents to get subsidy in cash

Hong Kong economy

Ng Kang-chung

Published: 7:47pm, 30 Aug, 2021

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Hong Kong’s largest opposition party has called on the government to dish out another round of HK$5,000 consumption vouchers to residents, as well as to expand the scheme to cover 850,000 schoolchildren and allow the elderly to receive cash instead.

The Democratic Party on Monday said another handout was needed because HK$5,000 (US$641) was not a large sum and could be spent quickly. Residents began receiving their first payout – HK$2,000 – in the popular HK$36 billion scheme at the start of the month.

But the party questioned whether the digital vouchers were enough to relieve people’s financial burden and boost spending, as the main aim of the scheme was to speed up the city’s economic recovery during the Covid-19 pandemic.

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“The most common complaint we’ve heard is that the sum is too little. Many said they used up the HK$2,000 in a week or two,” said Chan Po-ming, a member of the party’s central committee. “The next disbursement will only come in October. How can this help boost consumption?”

Pro-establishment groups, including the Federation of Trade Unions (FTU), have since earlier this month been urging Chief Executive Carrie Lam Cheng Yuet-ngor to promise another round of e-vouchers when she rolls out the last policy address of her five-year term on October 6.

During a rare town hall meeting featuring Lam last Sunday, a resident expressed hope the government would hand out another HK$5,000 next year. But Lam insisted the financial secretary would need to consider the city’s fiscal situation before making a decision.

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The government announced the consumption voucher scheme in the budget in February. In general, permanent residents over the age of 18 are eligible and 6.93 million people registered for the scheme, which gave retailers and restaurants a boost in business and helped promote the wider use of digital payments.

The first HK$2,000 voucher was disbursed to more than 5.47 million residents via four designated electronic payment platforms from August 1. The second instalment will be paid out from October 1.

Officials previously forecast the initiative would contribute 0.7 per cent growth to GDP this year.

So Yat-hang (left), Chan Po-ming and Douglas Tsang. Photo: The Democratic Party

Chan, the Democrat, estimated the party’s proposals would only cost the government an extra HK$40 billion.

“Compared with the money to be spent on the Lantau Tomorrow Vision plan, there is no reason the government cannot afford it,” he said, referring to the ambitious HK$624 billion project to build a metropolis off Lantau Island that includes 1,700 hectares of reclamation.

Douglas Tsang Tsz-ming, the party’s deputy spokesman for youth affairs, said the voucher scheme should be expanded to include students. He cited earlier research by the Consumer Council that found textbook prices had risen more than 2.4 per cent this year.

“Not to mention the need to buy new school uniforms and pay other school expenses, it will cost parents at least HK$5,000 to HK$6,000 for one child,” Tsang said.

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According to the Education Bureau, about 850,000 children were enrolled in schools in the 2020-21 academic year. The total comprised 165,000 in kindergartens, 364,000 in primary schools and 329,000 in secondary schools. If each pupil was given HK$5,000, the total would be about HK$4.25 billion.

So Yat-hang, the party’s deputy spokesman for elderly affairs, urged the government to allow older residents to get the subsidy in cash.

“The voucher was disbursed via electronic payment platforms. But many senior citizens do not know how to use digital payments,” he said.

The first HK$2,000 voucher was paid out from August 1. Photo: Felix Wong

The pro-Beijing FTU also called for another round of e-vouchers during a consultation session with the chief executive earlier this month.

Former legislator Bill Tang Ka-piu on Monday said the federation would like the e-vouchers to be made a regular scheme. “It can help ease residents’ burden as well as boost the economy, and what is more, it has a cheer-up effect to make people happier,” he said.

Asked if the vouchers should cover schoolchildren, Tang said it was not a priority.

“It is more important for the government to take the opportunity to promote digital payment and educate people to adapt to it as we are promoting smart city development,” he said.

Tang added that e-vouchers should also be accepted for settling government bills such as tax.

This article appeared in the South China Morning Post print edition as: Call for new round of HK$5,000 vouchers