Most sane people faced with the Financial Secretary’s budget address will feel their eyes glaze over and a need for a lie-down. At BUZZ we thought we would give you a distillation. There really is eye-opening stuff in the address and chances for you to obtain some money. Snippets from Paul Chan’s recent speech:
“SMART CITY”: The Government is working towards electronic identity for all residents, smart lampposts and a big data analytics platform. $900 million has been allocated. 3D digital maps covering the entire territory are to be available in phases.
ELECTRIC CARS: The one-for-one replacement scheme is to be extended to over 250,000 eligible vehicles. $120 million has been set aside to pay for new EV charging facilities in Government car parks. Ways of encouraging private car parks to install EV charging will be explored. On-street quick-charging stations are planned.
HARBOURFRONT: Mr Chan promised improvement to the waterfronts on the island and on Kowloon side. Promenades now totalling 20 km are to be extended to 34km over 10 years. Open space to be developed on both sides of the harbour will total 35 hectares.
On the matter that pierces the hearts of middle-class residents, who can’t get into the world’s most unaffordable housing market, Mr Chan offers useless advice. First he commiserates: “Current flat prices are out of line with people’s affordability.” Then this dumb statement of bureaucratic profundity: Given the economic uncertainties, “members of the public must carefully assess the risks and their financial position before making a home purchase decision.” That’s it. There is nothing about diversifying the housing market so it is no longer monopolised by a few mega-rich families who unconscionably rip-off their fellow citizens, nor anything about enabling mortgages of, say, 90% as you will find in countries where the government is democratically elected. There is a lot of housing development going on (see below) but it will never benefit the middle-classes under Hong Kong’s rotten, brutally unequal system.
This shameful neglect of ordinary people’s aspirations goes on despite the fact the Government has $1,162 billion in fiscal reserves.
The Financial Secretary outlined multiple schemes in which he is giving money away, vastly so in the technology sector. The likes of Jake van der Kamp and David Webb will tell you most of this money will be wasted. Civil servants are clueless about how to assess IT or business potential. Nevertheless, you may be able to get Government money if you have a special needs child, or your kid is about to do secondary school examinations, or you are elderly needing medical care. Billions are being given away as grants to sports, arts, education and other sectors, especially as we have said, technology (see below). If you working in these sectors take a look. You may be eligible for a grant.
Because the Government is awash in money that it can’t find the imagination or political guts to deploy for the people’s benefit, Paul Chan offered these minimalist measures to “relieve people’s burden”:
- Salaries tax reduced by 75% subject to a ceiling of $20,000 and profits tax cit similarly
- Waiving of property taxes with a ceiling of $1500 per quarter per property
- Extra one month payment of CSSA benefit, old age allowance or disability allowance. Similarly for working family allowance and work incentive scheme
- Grant of $2500 for students plus payment of exam fees for kids doing the Diploma of Secondary Education Exam.
- Extra $1000 given to the elderly who use the health care voucher scheme. Now the total may accumulate to $8000
- Business registration fees waived for a year
- $400,000 for qualifying enterprises seeking technology upgrading
An astonishing amount of money is being plowed by the Government into the technology sector. $100 billion has been committed for promoting development in four areas, biotechnology, AI, smart city and financial technology. $20 billion is going into a technology park in the Lok Ma Chau loop on the border. $10 billion will be spent for “clusters” at Science Park focusing on two sectors, health care and AI plus robotics.
The “Lantau Tomorrow” scheme that calls for land reclaiming for 1000 hectares of artificial islands has been roundly denounced. Critics say brownfield sites should be developed first. (In her policy address last October Chief Executive Carrie Lam said brownfield sites can take many years to unlock legally.) “Lantau Tomorrow” also provides for new road and rail networks linking Tuen Mun, North Lantau and new artificial islands in Central waters and Hong Kong Island north.
Here’s a brief housing development summary: Over the past two years land for housing has been freed up for 93,000 units. Over the next five years 100,400 units will be provided as public rental housing and “Green Form” subsidised home ownership plus 26,300 other subsidised sale units. The private sector is projected to construct an average of 18,800 units annually. Three development sites at Kwun Tong-Fanling, Hung Shiu Kiu and Tung Chung will provide 210,000 units from 2023.
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