Legco Approves HK$5.5bn In Covid Relief Funds

The Legislative Council has approved the government's latest round of Covid-19 relief subsidies, which will provide HK$5.5 billion to sectors most affected by the latest social distancing measures, such as restaurants, gyms, beauty parlours and cinemas.

The pro-Beijing legislature supported the funding on Monday, despite criticism from some of the lawmakers that it does not go far enough to help businesses stay afloat.

Others complained that no direct help is being given to struggling employees.

The DAB's Ben Chan said some industries that have also been hit hard by the pandemic have been left out of this round of relief measures.

He cited the cross-border transport industry as an example, saying many companies have stopped operations for some 11 months already.

But Chief Secretary Matthew Cheung defended the latest package at a special Finance Committee meeting, saying the government needs to take a targeted approach because of its financial situation.

"We know many have been left out. Many other sectors have been hit. We do know that. But given our fiscal constraints we have to take this approach," he told lawmakers.

Cheung said the government has to be prudent with its spending as there may be more waves of outbreaks in future.

One of the two non-establishment lawmakers remaining in Legco, Civic Passion's Cheng Chung-tai, also grilled the government over its speed in rolling out the subsidies, saying many businesses have yet to receive any money from the first three rounds of relief measures.

"The government officials, when they decide and try to organise this fund, it's based on their gut feeling. They really didn't know the real needs of the sectors," he said.

The funding request was passed after seven hours of debate, with 32 lawmakers voting for the funding, one against and three abstentions.

On top of the HK$5.5 billion in this fourth round of relief package, another HK$830 million was approved for "contingency funds".