Policy Address reaffirms balanced approach to society

The Chief Executive has made the last Policy Address of this term of government. As in previous addresses, he provided a comprehensive overview of the work the government has done in the past year as well as initiatives and proposals for the coming years.

On economic development and the Belt and Road, few new initiatives were proposed, while emphasis was placed on how to implement and strengthen existing initiatives. It has long been my view that Hong Kong can no longer afford to continue its government non-intervention approach, as all governments in our surrounding regions have aggressive industrial policies to boost economic development. Certainly, it would require a fundamental shift in the mentality of principal officials and civil servants, and old habits die hard. I hope the next administration will have the vision and determination to proactively develop our economy.

I believe most people would agree that the most pressing problem we face today is housing and land use. In the past few years, this government and the relevant officials have been working tirelessly to locate and develop suitable land for residential and commercial development. They have worked so hard that some critics even accused the government of blindly seizing any land it can find. To be fair, it takes several years for a piece of undeveloped government land to become a usable residential building. Therefore, a shortage of land cannot be solved within a mere five-year government term. This issue as it pertains to country parks and conservation was once again raised, as the Chief Executive pleaded with the community to have a more open mind toward the possible use of a portion of country park land for development. I believe that to have an informed debate on this issue, the government should conduct a study to locate which small part of the existing country park land could be rezoned into public housing and other non-commercial development.

Transport development is another factor affecting the development and everyday life of local residents. The proposed route 11, a new highway linking Yuen Long and northern Lantau with new tunnels and bridges, is on the government agenda. This route could further merge the local road network with the Hong Kong-ZhuhaiMacao Bridge (HZMB). The HZMB is possibly the highway development with the biggest impact on Hong Kong. It is due to be completed at the end of this year and will shorten the travel time between Hong Kong and the western Pearl River Delta region. The management of traffic flow into and out of Hong Kong via the HZMB is crucial, as Hong Kong’s road network cannot possibly accept a huge influx of vehicles. Ideally, we should encourage local residents and tourists to use public transport or tour buses on the HZMB, but it seems that the detailed traffic arrangements for the HZMB boundary facilities and the new man-made island have yet to be announced.

Another key point in this year’s Policy Address is retirement protection. The offsetting mechanism of the Mandatory Provident Fund (MPF), The author is an executive member of the New People’s Party and a former civil servant.

Following the admirable tradition of caring for the elderly, the government has announced that it will provide an additional monthly cash allowance to around half a million elderly.

which canceled part of employees’ severance payments (SP) or long-service payments (LSP) with MPF contributions, has been a hot issue in the community. The government now proposes to progressively abolish the offsetting with no retrospective effect. Moreover, the government proposes “that the amount of SP or LSP payable for an employment period from the implementation date be adjusted downwards from the existing entitlement of two thirds of one month’s wages to half a month’s wages as compensation for each year of service”. Then, “the government will share part of the expenses on SP or LSP of employers in the 10 years after the implementation date of the abolition to help employers, especially SMEs (small- and medium-sized enterprises)”.

This is no doubt a major reform of the MPF with a profound impact on employers and employees. It is a balanced approach that requires a sacrifice from employers, employees and taxpayers. Whether this proposal will be accepted remains to be seen, but it is likely to draw criticism from many as neither side gets exactly what it wants. I believe the key to its success is the amount of government commitment to assist the load of employers and employees. Obviously, the more the merrier.

Following the admirable tradition of caring for the elderly, the government has announced that it will provide an additional monthly cash allowance to around half a million elderly. It also “proposes to lower the eligibility age for the Elderly Health Care Voucher from 70 to 65, so that about 400,000 more elderly persons will receive HK$2,000 a year to purchase private primary care services”. Hospital fee waivers will be enjoyed by 140,000 more elderly people, while the government may establish a public annuity scheme for the elderly to invest their savings into.

Overall, it is a balanced Policy Address and a good review of the efforts and results this government has achieved. As this government term is about to end, I sincerely hope the next Chief Executive can provide us with new ideas and also has the determination to lead us forward.