Shutting Down Businesses A Lesser Evil: Edward Yau

Commerce and Economic Development Secretary Edward Yau on Saturday defended the government’s order for entertainment venues like cinemas and gyms to shut down for two weeks, calling the move a 'lesser evil' aimed at preventing greater economic losses while controlling the spread of coronavirus.

Speaking on an RTHK programme, Yau said the temporary shutdown – to be enforced starting at 6pm on Saturday – could actually help affected companies save costs, and more businesses may go bust or lay off staff if nothing is done.

He acknowledged that some businesses have already taken steps to increase the distance between customers, noting in particular that cinemas have taken “very positive steps” in taking a number of precautions.

“But on balance I think, if [the number of] people going to the cinemas has dropped to such a low rate, taking a pause and closing down the cinemas for two weeks might help to send a very clear signal to the community that the best way to handle the situation is to stay home to avoid unnecessary social contacts”, he said.

Yau said the temporary shutdown shouldn’t have any long term effect on affected businesses, stressing that the government is looking into specific direct, or indirect aid packages to help them.

However, he wouldn’t commit to any specifics, such as whether the government would follow the UK’s example in paying 80 percent of the wages of those who can’t work as a result of the coronavirus measures.

Yau noted that many self-unemployed, or part-time workers may be involved, complicating the picture.

He gave assurances that various departments are drawing up assistance schemes best suited to the specific sectors, but he said any subsidies could be handed out in batches so the government can punish businesses that lay off staff, and reward those that don't.

Any new programmes, he said, would be announced when they’re ready.

In addition to the mandated closures of entertainment venues, all restaurants are being required to halve their capacity and increase distances between customers, while public gatherings of more than four people will be banned starting on Sunday for a two-week period.

The catering sector’s representative in Legco, Tommy Cheung, told another radio programme on Saturday that the trade will be badly hit by the new restrictions.

He called on the government to apply for more funds from the legislature to foot two weeks’ worth of rents and salaries for the entire two week period.

Cheung said the administration should consider reducing, or waiving an entire quarter of rates payments.

He also urged landlords to reduce rent for restaurants, saying they should consider the overall interests of the territory in mind.

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