'No Cash Handouts For Subdivided Flat Tenants'

The government has poured cold water on calls to consider giving residents of subdivided flats cash handouts instead of subsidies to improve their living environment.

Lawmakers at a meeting of Legco’s home affairs panel on Monday had asked for more flexibility after the administration unveiled a new subsidy plan that would be limited to specific expenses like minor renovations, furniture and pest control.

Councillors were in favour of more help for these residents, but took issue with the government for dictating what they can use the subsidy for.

The administration has proposed giving subsidies of up to HK$8,500 to single households; and HK$10,000 to households with two or more people. But they wouldn't get the money directly – representatives of NGOs would conduct home visits and they would help the residents pay for specific home improvement measures.

Lawmakers across the political spectrum urged the government to be more flexible.

Federation of Trade Unions lawmaker Luk Chung-hung said instead of renovation expenses, people may have more pressing needs like paying the rent, for example, and cash handouts may be a better idea.

People Power lawmaker Ray Chan suggested a rent subsidy instead.

And Labour party legislator Fernando Cheung said the money could go to waste if landlords don't agree to the renovations.

“Landlords of these subdivided units are usually not cooperative and they won't work with the officials or the NGOs, so I would hope that these resources could be more flexible in that if the actual renovation could not be performed, the money could be used to improve the other situations of the low-income households, such as allowing them to use the money and grant them cash”, Cheung said.

However, the Secretary for Labour and Welfare, Law Chi-Kwong dismissed their suggestions, saying a rent subsidy would end up benefitting landlords more than residents, and cash-handouts would only be a short-term help.

He stressed that the purpose of the proposed subsidy is to help improve the living environment of those living in cramped conditions.