Authorities should hand out consumption vouchers to Hongkongers and extra allowances to city’s underprivileged: 2 organisations

Federation of Public Housing Estates says vouchers had benefited various industries and played a role in boosting the economy during the pandemic

Democratic Alliance for the Betterment and Progress of Hong Kong highlights both middle and lower-class families face increased financial burden amid city’s slower-than-expected economic recovery

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People queue up for the consumption voucher scheme at in Mong Kok. The vouchers had benefited various industries and played a role in boosting the economy during the pandemic, the Federation of Public Housing Estates said. Photo: Yik Yeung-man

Published: 8:48pm, 12 Feb 2024Updated: 8:57pm, 12 Feb 2024

Authorities should consider providing handouts such as consumption vouchers to all Hongkongers and extra allowances to city’s elderly as well as underprivileged in this month’s budget, despite an expected deficit of HK$100 billion (US$12.8 billion), two organisations have said.

The Federation of Public Housing Estates and the Democratic Alliance for the Betterment and Progress of Hong Kong (DAB) submitted separate petitions at government headquarters in Admiralty on Monday, a day after Financial Secretary Paul Chan Mo-po said most residents regarded such perks as ‘unnecessary’.

The federation said the government should continue the distribution of consumption vouchers as they had benefited various industries and played a role in boosting the economy during the pandemic.

Hong Kong Financial Secretary Paul Chan will unveil his budget on February 28. He warned in December that the deficit was expected to exceed HK$100 billion. Photo: Elson Li

“We understand the government needs to manage its finances carefully and ensure that expenditures do not exceed income, as it potentially deals with a significant fiscal deficit this year,” it said. “However, it is also necessary to balance the practical demands of society and stimulate economic development through some countercyclical measures.”

Among the relief measure recommendations put forth by the housing group included subsidising one month of rent for the city’ roughly 800,000 public housing tenants, increasing the child allowance and extending the rates concession from covering the first six months to the whole year.

The group also suggested the government repurpose the unused community isolation facilities at Kai Tak and Penny’s Bay, such as integrating the Kai Tak facility with the cruise terminal to provide studios, dormitories and hostels as a hub for cultural and tourism industries.

Other policy suggestions include increasing the minimum area of subsidised housing units to be larger than the current 280 sq ft and increasing the minimum living area of each public housing tenant to be greater than seven square metres.