Old-age allowance debate continues

For those who enjoy suspense or drama, there is no better performance than the current debate on the Old Age Living Allowance.

In the political arena, protagonists in the drama are officials of an executive-led government on the one hand, and opposition in the Legislative Council on the other.

Early in October, the Secretary for Labour and Welfare Matthew Cheung Kin-chung announced a means-tested old age allowance to help those over 65.

In the midst of prosperity, many old people still scavenge a living and scrounge for their next meal by doing odd jobs and collecting cardboard. They are poor, but not poor enough to qualify for the dole.

This new HK$2,200-a-month allowance, which would cost HK$6.2 billion a year, is designed to help them. But the allowance is subject to meeting eligibility criteria set at a declared income not exceeding HK$6,600 a month and assets not above HK$186,000 per person. There's the rub.

This requirement for means-testing old people, particularly those over 70, is a serious departure from the existing non-means-tested old age allowance - nicknamed "fruit money" - payable at HK$1,090 a month to people over 70. This has been for some 30 years a symbol of respect for elderly people who have paid their taxes and made Hong Kong what it is today.

Whatever the logic behind the new allowance, and however compassionate its intention, many who are opposed to the scheme consider it iniquitous as it stigmatises the poor by dividing the poor from the poorer - and the poorest.