HONG KONG, July 16 (Xinhua) -- Hong Kong Special Administrative Region (HKSAR) Chief Executive Donald Tsang announced on Wednesday a series of short-term relief measures to alleviate inflation, which involve the spending of 11 billion HK dollars(1.41 billion U.S. dollars) from the HKSAR government coffers.
Speaking at the Legislative Council question-and-answer session, Tsang said he hopes the proposals help low-income earners meet their daily expenses amid worsening inflation.
He said the Mass Transit Railway(MTR) board has agreed to offer half-price concessions to students between certain stops. The MTR Corporation will announce details soon.
The HKSAR government will pay another two months' rent for most families living in public housing estates on top of next month's rent subsidy.
Students receiving Comprehensive Social Security Assistance and those who will receive student financial assistance in the following school year will be given a one-off 1,000 HK dollars(128U.S. dollars) subsidy.
Two extra months' payment of Old Age Allowance and an extra month's standard rate payment of Comprehensive Social Security Assistance and Disability Allowance will be offered to recipients.
Meanwhile, the employee retraining levy will be waived for two years to relieve the burden of hiring foreign domestic helpers in middle-income families. Government fees and charges related to livelihood will also be frozen for one year.
Besides providing half-year electricity charge subsidies to all households from September, the HKSAR government will offer the subsidies for a further six months, increasing the total subsidy amount from 1,800 HK dollars(231 U.S. dollars) per household to 3,600 HK dollars(462 U.S. dollars).
The HKSAR government has also earmarked 100 million HK dollars(12.84 million U.S. dollars) for the Social Welfare Department to work with non profit-making organizations to provide short-term food assistance services to needy families.
To enhance price information on daily necessities the HKSAR government will help the Consumer Council expand the exercise to compare and report prices in supermarkets, shops and markets. It will also liaise closely with the Chinese mainland to ensure stable and adequate food supplies.
Tsang said the proposals will not fuel inflation because many are one-off measures, but they will likely cause a higher fiscal deficit and a fall in financial reserves. However, the HKSAR government's sizable fiscal surplus last year puts it in the position to make additional commitments, he said, adding the proposals will not bring major or long-term implications on public finances and the operating account.
The HKSAR government will seek funding approval from legislators Friday. As the proposed waiving of the employee retraining levy involves law amendments the SAR government must obtain Executive Council approval before their scheduled implementation in September.
Noting inflation is a global problem, Tsang said as Hong Kong is an open and free economy and it is difficult for the HKSAR government to control price rises. Although some people may not be covered in the proposal, most middle-class and low-income families should benefit from the measures.
He said the HKSAR government will formulate long-term anti-inflation measures and is willing to discuss the issue with lawmakers.
