Long-term solutions: Financial Secretary John Tsang says the Government will solve the poverty problem through long-term education and retraining.

Financial Secretary John Tsang says having more hotel sites will lower room rates and boost Hong Kong's competitiveness.

Speaking on a radio talk show this morning Mr Tsang said he expects about 10,000 new hotel rooms will be provided when the 10 additional hotel sites made available yesterday by the Government are fully developed.

On his recent Budget address, he said many one-off measures proposed in it will temporary relieve inflationary pressure, adding the Government will solve the poverty problem through long-term education and retraining.

When asked whether the Government will provide more interest-free or low-interest loans to tertiary students Mr Tsang said he may consider the issue after assessing the overall resource deployment.

Noting Hong Kong is facing inflation and economic performance is strong, he said there is a high possibility of increasing civil servants' salaries.

The Financial Secretary admitted the provision of a one-off grant of $3,000 to Old Age Allowance recipients can only solve their livelihood problems temporarily. He reiterated there is an urgent need to review the long-term operation of the allowance scheme, and the Labour & Welfare Bureau will start the consultation soon.

In response to the recent rise in his popularity after the release of his fiscal blueprint, Mr Tsang attributed the encouraging results to the teamwork of the whole Government. He said the surge proved the Government's work has gained acceptance in the community.