'No More Handouts' Despite Threat To Oppose Budget

Financial Secretary Paul Chan on Monday refused to back down on his refusal to give cash handouts to those left out of the giveaways promised in his budget, as both the New People’s Party and the Democratic Party threatened to vote against his financial blueprint.

Pressure has been mounting on Chan over his ‘targetted’ approach to sharing 40 percent of the government’s bumper surplus with the people – with critics pointing out that many disadvantaged groups were left out of his tax and rates-heavy HK$52.4 billion giveaway.

Chan has asked the Community Care Fund to come up with relief measures for those who missed out. And he’s proposed that the fund’s traditional coverage of ‘N-nothings’ – people who don’t qualify for welfare or housing benefits yet don’t make enough to benefit from tax or rates deductions – be expanded to cover more people.

On Monday, he told a radio programme that the total cost of these measures will be under HK$10 billion, and that officials will make getting the benefits as hassle-free as possible. But he again ruled out a universal cash-handout, saying he won’t bow to political pressure.

But New People’s Party leader Regina Ip warned that her party may have to vote against the budget if the government doesn’t come up with a better plan.

She said distorting the purpose of the Community Care Fund to help those who missed out would be “humiliating” for the recipients, and suggested that the government hand out HK$3000 to non-taxpayers who won't get any tax rebates, people don't pay any rates, and those who're not public housing tenants.

She said New People's Party legislator Eunice Yung might have to vote against the budget bill if the government sticks to its current plan.

Democratic Party lawmaker James To says his party will also vote against the budget unless the government backs down and gives cash handouts to more than a million people who he estimates didn’t benefit.

To says his party wants HK$6,000 payments to people who don’t earn enough to pay tax, and taxpayers who get less than this should get top-up payments.

“It is very absurd that when we have an… [extremely] extraordinary surplus, but over one million, or 1.5 million people were left out. This is very illogical and [is an] absolutely unfair system that we cannot support”, To said.