Expectations high as CE delivers second policy address
Expectations are high for John Lee’s second policy address as Chief Executive – with many looking for announcements ranging from a possible easing of property taxes to poverty-alleviation measures and ways to get Hong Kong people to have more children. The rumour mill has been on overdrive on speculation that the government may change its property cooling measures. Commonly referred to as ‘spicy measures’ – various taxes on property transactions were introduced years ago to discourage speculators and rein in what was once a red-hot property market. But now that home prices are down some 15 percent from its peak two years ago and second-hand transactions are in the doldrums, critics say it is high time to take away some of the spice. The Institute of Surveyors says in a down market with close to zero speculative activities, all the measures should be done away with. Buggle Lau – Midland Realty's chief analyst – agrees, saying: “If some of these measures [are] relaxed, I think it will help stabilise the overall property prices. Even if the government relaxes some of these measures we don't believe the prices would increase significantly, given the current high interest rate environment and a weak economy." Unionist Bill Tang, for his part, wants the government to do more to help first-time homebuyers get on the property ladder. The Federation of Trade Unions lawmaker also wants the government to focus on the housing needs of the disadvantaged, and set a hard target to get families out of cramped subdivided flats within four years. “In last year's policy address, there were 110 key performance indicators, or KPIs,” Tang noted. “We keep asking why there isn’t another KPI - a timetable on when we say goodbye to sub-divided flats? I hope there can be an update in the policy address." Tang added that the poor living conditions hamper the development potential of tens of thousands of young people living in sub-divided units. This contention is backed up by a recent survey by the Society for Community Organization (Soco), which found that nearly two-thirds of children living in poverty had no activities during the summer holidays. The group wants the CE to look into ways to help them with out-of-school learning to help them achieve their potential. The Alliance for Children's Development Rights says the support can come in the form of learning vouchers for grassroots children. It also wants more support for children with special education needs. Other groups are also focused on children – in particular, the decline in the number of young people in Hong Kong. The SAR has one of the lowest birth rates in the world. The New People’s Party wants government cash subsidies to encourage couples to have babies. Lawmaker Judy Chan says a HK$20,000 subsidy should just be the starting point. "Maybe when couples have one child, they will think about a second. When they have two they think about a third. But now the government's policy is mostly rather rigid - there isn't a progressive subsidy. So there can be more research on this, including offering tax cuts," she said. The DAB wants similar measures, along with two thousand dollars in annual medical care vouchers to help offset medical expenses for parents. The CE himself had given little away ahead of his Wednesday address at the Legislative Council – only announcing that his latest blueprint will focus on developing the economy and making people happier. He had also given the media a sneak peak of the physical document, explaining that he chose green for the cover just like last year because the colour represents hope, vitality and harmony.