Opinion | Rosy view of Hong Kong’s finances won’t prepare people for fee hikes
- Stop masking true scale of budget deficits with bond proceeds. Hongkongers are not stupid. They know the government must balance the books
It is natural for all organisations – commercial, NGOs, governments – to want to paint as positive an image of themselves and their activities as possible. In the business world, it can help draw customers and investors; for charities it can assist in attracting donations; for governments it can establish credibility which brings benefits in terms of smooth governance.
But there can also be a downside. When the public relations effort is too good, it can create too rosy a picture. A company making a big profit might be expected to lower prices or pay higher taxes; a charity attracting too much money might lose donors; a government setting expectations too high can lose credibility when reality falls short.
While other places, such as the mainland and Southeast Asian countries, managed to sort out the issue years ago, we will study the situation for another year and bring forward a draft bill by the end of next year. In other words, probably no proper Uber until 2026 at the earliest so don’t hold your breath.
I make no bones that I am an unashamed bull on Hong Kong. I have every confidence in the long-term future of our economy and the solidity of our public finances, provided we continue to behave prudently. But we need to be careful about how we present the information to the community at large.
