Middle class not overlooked: CE
January 17, 2014
Creating a better economic environment and nurturing the next generation’s development will address the needs of the middle class, Chief Executive CY Leung says.
Speaking on a radio phone-in programme today to discuss his 2014 Policy Address, Mr Leung said the Government will be able to afford the poverty-alleviation measures it has pledged, in spite of an expected decrease in revenue from 2018.
“We’re not dipping into the reserves, and we don’t have any plan to raise new types of taxes, either,” he added.
Asked whether such measures would lead to higher tax rates, Mr Leung said long-term investment in infrastructure and managing revenue through fiscal balance are among the Government's responsibilities, and while it is important to look after people in need including the working poor, he did not consider hand-outs appropriate.
"We can afford what we propose to do in the Policy Address,” he said. “We are definitely not going on the spending spree we have seen in other countries in the past decades.”
Mr Leung said the middle class is a large and hard to define group with different aspirations, and as such, their needs would be addressed through economic and other measures. The Government will also bear in mind their requests and concerns, he added.
In response to a query about the city's long-term competitiveness as Mainland cities have planned free-trade zones, Mr Leung said Hong Kong is working with the central government on the 13th Five-Year Plan, and will leverage the benefits of the Hong Kong-Zhuhai-Macau Bridge, turning Lantau into a west Pearl River Delta thoroughfare and providing an engine for economic development.
This would require active involvement of business and the community, he said.
"We don’t want to turn that man-made island into just a dormitory."
On the topic of offsetting severance payments with Mandatory Provident Fund contributions, Mr Leung said the issue has been a matter of contention between employers and employees for many years, and indicated they may be reduced incrementally.
“We want to listen to employers and employees as to how we should do this progressively,” he said.
Responding to a caller's question on infrastructure spending, he said railways are green and efficient, and would be part of a strategy to reduce car traffic in places served by new lines on Hong Kong Island, noting fewer cars on the road would decrease roadside pollution.
In response to a comment on road-pricing strategies such as those in Singapore, Mr Leung said the Government would consider any measure. It would work with people in affected districts before formulating a proposal.
Mr Leung agreed with a caller’s assessment that taking his proposals through the Legislative Council would be a challenge, noting that just one person filibustering could do great harm. He expressed optimism, given the success in passing the old-age living allowance.
Mr Leung said he was aware of rising sentiments against people from the Mainland, noting people in the Mainland were also unhappy about some of Hong Kong’s policies.
He acknowledged callers' concerns about the one-way permit system, but pointed out that one in three marriages in Hong Kong involves a partner from the Mainland, while hundreds of thousands of Hong Kong people currently live in major Mainland cities.
Hong Kong's relationship with the Mainland represents the single-most important bilateral relationship, he added, and there are strong economic and social ties to maintain.
"I see this very much as one of the responsibilities of the Government, to articulate the facts to both sides,” he said. Mr Leung pointed out previous successes in internal relations, such as central authorities' decision to reverse Guangdong's policy allowing people from Shenzen into Hong Kong on multiple-entry permits.
