HK Govt Blames Protests for High Poverty Rate

Law Chi-kwong says the poverty rate is lower than reported

 

Yesterday the government said Hong Kong's poverty rate reached a record high last year, and the protesters were to blame.

In its annual poverty report, the government said 21.4 percent of residents were considered poor last year, up one percentage point from the year before. It said 1.49 million of Hong Kong's total population of 7.52 million were under the poverty line -- which is calculated at 50 percent of the median monthly household income before government allowances and subsidies.

The median monthly household income in 2019 was HK$28,900, which is difficult for a family to live on, and half that at HK$14,450, even worse.

Govt report says 1.49m are below the poverty line

Nevertheless, the government had the gall to blame the situation of the poor on the anti-government protests last year and the trade war between China and the United States, saying the "double whammy" caused the SAR's first economic recession in a decade.

"The unrest caused severe disruptions and battered sectors related to consumption and tourism that involved substantial lower-skilled jobs. Grassroots families were particularly hard-hit," it said, adding that the labour market worsened in the second half of 2019.

How can the government blame poverty on the protesters, when it was the government that came up with the extradition bill in the first place and refused to listen to 2 million people protesting against it that caused the months-long protests that rocked the city? 

And in any event, why does the government even allow employers to pay its workers such low wages to start with? It is the government itself that does not value these grassroots families to start with.

Perhaps after receiving a lot of heat for this weak explanation of why there are so many people in Hong Kong, the Secretary for Labour and Welfare Law Chi-kwong hit back, and began interpreting the numbers differently.

On a radio show today he claimed it was wrong to extrapolate there were 21.4 percent of people living below the poverty line in Hong Kong, based on the report his administration published.

Critics say report only tells half the story

"It doesn't tell us how many people are actually living below the poverty line. It tells us how many people would be living in poverty if the government does nothing at all," Law said.

He explained that after factoring in various social security allowances and government relief subsidies, the poverty rate was only 9.2 percent, or 640,000 people. That meant the so-called post-intervention poverty rate marginally improved by 0.1 percentage points from 9.3 percent in 2018, he said.

Law added the efficiency of the government's social welfare programs helped 850,000 residents out of poverty through Comprehensive Social Security Assistance, and Old Age Living Allowance.

However, in many cases the government makes it very difficult to be eligible for CSSA, and the allowance for seniors is a very small sum each month, less than HK$1,500.

Ng Wai-tung, community organizer for the Society for Community Organization, said the welfare chief's analysis also did not reflect the whole picture.

"It's only half correct," Ng said. "On the one hand, it reflects the scale of low-income groups before any government assistance, but on the other hand, it underestimates the harsh reality that so many people are not even earning enough to make ends meet."

White elephant projects like Kai Tak waste money

Perhaps one thing Law and Ng can agree on is that the poverty rate could climb higher next year due to the coronavirus pandemic that greatly impacted areas such as tourism, hospitality, retail and construction.

Law said the government has already rolled out multiple poverty-alleviation schemes this year.

While the effort is appreciated, the government's investment in the poor is pittance compared to how much it throws into white elephant projects like the Hong Kong-Zhuhai-Macau Bridge, the Kai Tak Cruise Terminal, and Disneyland.

If the government put more effort into really helping the poor, it would benefit Hong Kong's economy even more. Social mobility is what makes an economy stronger and gives hope to people.

But it seems the Lam administration is keen on blaming others for high poverty rates, when it is those in the position in power who have caused this problem of inequality in the first place.

 

Carrie Lam is Like a Broken Record

Carrie Lam (with an new hairdo) hoping for a better 2020 for Hong Kong

Hong Kong Chief Executive Carrie Lam Cheng Yuet-ngor has observed 2019 was a tough year and hopes to restore order and harmony in the new year in a three-minute video the government released on New Year's Eve.

Protesters battled tear gas, pepper spray and violence in 2019

"In 2019, we experienced challenges not seen before. The unrest triggered by the introduction of the extradition bill has lasted more than six months," she said. "We all want to see an end to this predicament. This situation has caused sadness, anxiety, disappointment and even rage.

"As chief executive, I will not shy away from my responsibilities. I will listen humbly to find a way out," she said, adding the government will handle the problems at hand and acknowledge the shortcomings in the system as well as deep-rooted conflicts in society.

"I will listen humbly to find a way out," says Chief Exec. Carrie Lam in a New Year's message alongside top officials. "We can begin again together."#HongKong has been rocked by over six months of protest, with a fresh rally set for January 1. https://t.co/kmLJLFCnSX #2020 #NYE pic.twitter.com/siFsYwj8Pq

— Hong Kong Free Press (@HongKongFP) December 31, 2019

 

The video includes footage of protest marches, some damaged street signs and walls with graffiti, but not violent confrontations between protesters and the police.

She ends by saying: "I believe we can once again overcome our current challenges and rebuild Hong Kong. Let's start 2020 with a new resolution to restore order and harmony in society," Lam said.

Did she seriously procrastinate until the last day of 2019 to again pledge to find a solution to the political crisis that has plagued the city for seven months?

Millions of people came out to protest the extradition bill

It just demonstrates how Lam still has no brilliant ideas to break the impasse in this political crisis that has seriously impacted the city's economy.

Also featured in the video are financial secretary Paul Chan Mo-po, Law Chi-kwong, secretary for labour and welfare, and Frank Chan Fan, secretary for transport and housing.

Law pledges the government will "substantially improve" the Comprehensive Social Security Assistance (CSSA) and Working Family Allowance Schemes without many details, while Frank Chan says his department is working hard to find land to boost land supply and reduce the time it takes to build houses.

The latter promise is a broken record we have heard over and over... there have been so many suggestions to use brownfield sites to redevelop, and forcing developers to help build social housing. What are they waiting for? And ways to build homes faster? Architects and designers have already created various pre-fabricated homes... why aren't these tried out yet? Or at least engage these experts and pick their brains on creative housing solutions?

Will the government really help the poor this time?

And what is Law's pledge of an improved CSSA? They are typically pathetic handouts that are difficult to qualify for and the financial amounts aren't very much to live on considering Hong Kong is such a wealthy city (and expensive to live in).

When the government finally acknowledges that most people in Hong Kong want political reforms and establish an independent inquiry then we can really begin to mend the massive rift. Otherwise protests will continue for sure in 2020...

How is this Benevolent?

Tens of thousands of poor elderly people will miss out on government benefits

Financial secretary Paul Chan Mo-po is making the tough decisions of who gets what in Hong Kong's budget for the coming years.

He's already hinted there won't be many handouts this year because the government didn't make much money from land sales. The surplus is expected to be one-third of the HK$138 billion (US$17.6 billion) last year.

But the government does still have over a trillion Hong Kong dollars in reserves.

Financial Secretary Paul Chan has hinted a smaller surplus

Nevertheless, the government has decided one of the cuts will be to impoverished seniors between the ages of 60 and 64. From February 1, those who are 65 years old and over and are poor will be eligible for the elderly comprehensive social security assistance (CSSA), up from the current 60.

Those who are not yet 65 and already receiving CSSA payments will not be affected because of disability or ill health, but it will impact those who are about to turn 60, are down and out, and were hoping for more government subsidies.

Roy Kwong Chun-yu, the chairman of the Legislative Council's panel of welfare services, criticized the move, which will affect about 25,000 people.

The elderly rate is HK$3,485 (US$445) per month, while those who about to turn 60 will only get HK$2,455. This money is meant to cover basic expenses, which is barely enough as it is.

Some elderly prefer to try to earn money than get handouts

"Many have left the workplace after they turned 60 due to age or health problems," Kwong said. "But besides the elderly CSSA, other elderly welfare measures are for those 65 and above, leaving a gap in support for those aged 60 to 64."

He added only HK$100 million is needed to fund the current arrangement.

Does the government not care about these 25,000 people who will need this government subsidy? The monthly handout is so pathetic that you have to wonder why the age range has increased -- there are many poor elderly who are collecting cardboard because they are too proud to receive help from the government, and Hong Kong can afford to help these tens of thousands of people.

Or does Carrie Lam Cheng Yuet-ngor's administration think these impoverished people are just going to go away?

Starving For the Sake of the Children

We are not surprised by sad nonetheless to hear a report that says 60 percent of low-income parents cut down on food and medical expenses to provide for their children.

Oxfam Hong Kong interviewed 400 families, 97 percent of which don't apply for Comprehensive Social Security Assistance (CSSA) even though they live below the poverty line.

All the families had at least one child under the age of 18 and one of the parents works full time. Their monthly income comes to less than half of the median household income for families the same size.

"Many of them told us that they hate being associated with the Social Welfare Department [which hands out CSSA payments]," said Wong Shek-hung, program manager at Oxfam.

She said there was a stigma attached to claiming CSSA, which covers the unemployed as well as low-earners and these low-income families didn't want to be considered hard working or that they accepted handouts.

Around 81 percent "hoped to to earn [their] own living" and that was the main reason they didn't apply.

Wong said more than 75 percent of the workers interviewed worked 44 hours per week, and 31.7 percent worked 60 hours or more.

The lack of extra money means children of these low-income families are unable to get learning materials and aren't able to participate in activities outside of school.

Almost 96 percent of those interviewed said there should be specific subsidies for low-income families.

As a result Oxfam suggests a monthly cash allowance of HK$800 for each of the first two children in a family, HK$600 for the third and fourth, and HK$400 for the fifth child and the rest, where one family member is working full time.

These suggested figures are half the rates allowed for children in the CSSA program, and the annual cost would be HK$1.73 billion.

Wong said to avoid the stigma around handouts the subsidy should be administered by the Labour Department and not the Social Wefare Department.

Kalina Tsang Ka-wai, Oxfam's senior program manager said the minimum wage needed to be reviewed first.

"The problem for these households is, ultimately, their low income," she said. "The minimum wage [which is reviewed every two years] can't even keep up with inflation right now.

"It'll be hard to maintain their current living standards even with a [child] subsidy if the minimum wage doesn't rise."

The government should seriously consider Oxfam's suggestion as a stop-gap measure for those who don't want to be on CSSA or are not eligible to at least give them some kind of financial relief. What is HK$1.73 billion from Hong Kong coffers? Hardly anything and yet it would be so helpful to these needy families.

We know the government is trying to figure out its strategy on tackling poverty in they city, but there should be some kind of temporary payments now until a more solid plan is in place. How much longer can poor people wait?