MR CHAN KIN-POR (in Cantonese): President, riots in society and the epidemic have dealt a heavy blow to the economy of Hong Kong, with the unemployment rate hitting a record high time and again. Mr CHAN Hak-kan finally has the opportunity to propose this motion on supporting the unemployed today. It is a bit late in terms of timing, but it is of course due to the impact of filibusters and the epidemic that we do not have the opportunity to discuss this livelihood issue of such importance until today.
The most worrying point at this moment is that the unemployment rate has not yet peaked and may remain high for a long time. Many analyses predict that while the economy of Hong Kong has gradually stabilized, we still have to wait for the end of the epidemic or the reopening of the border to achieve full recovery and market revival. Ultimately, the employment situation may only improve at the end of the year, or even early next year.
The Government launched four rounds of the Anti-epidemic Fund in the past year. Coupled with the relief measures in the Budget, it has spent some $800 billion on anti-epidemic work, reducing the fiscal surplus of the Government to a mere of $800 billion. In fact, the Government’s anti-epidemic efforts are of a great magnitude, including the Employment Support Scheme and the measures to support various trades. For those who are already unemployed, the Government has launched the Special Scheme of Assistance to the Unemployed, under which the asset limits for able-bodied applicants of the Comprehensive Social Security Assistance (“CSSA”) Scheme are temporarily increased by 100%. In addition, the newly delivered Budget has also introduced a Special 100% Loan Guarantee for Individuals Scheme for the unemployed, and undertaken to create 30 000 temporary posts.
Despite the Government’s strenuous efforts, it has refused to establish an unemployment assistance. Today, many Honourable Members have demanded the Government to establish an unemployment assistance, and I personally agree with them. The Government shoulders the responsibility to support the unemployed and underemployed, hence it is worthwhile for the Government to consider some temporary and time-limited assistance. In fact, the Government has already taken forward the Special Scheme of Assistance to the Unemployed on a temporary basis under the CSSA Scheme. According to the latest statistics provided by the Social Welfare Department, there are currently almost 20 000 CSSA unemployment cases. However, some people have criticized that the application threshold of the Special Scheme is too high, and it is necessary to go through the vetting and approval procedures of CSSA, which have deterred many people from making applications. I believe that the Government can refine the Scheme by, for example, streamlining the application procedures, or even detaching it from the CSSA framework, so as to enable more unemployed persons to apply. This will eventually achieve the same effect as a temporary unemployment assistance. Given its temporary nature, I believe the Government can afford it, and it is also worth considering.
Apart from temporary assistance, it is also proposed that long-term support measures should be provided for the unemployed. There are suggestions that the Government can draw reference from the practice of the United Kingdom and the United States to introduce a mandatory unemployment insurance scheme through contributions by both the employers and employees. Employees can then apply for assistance in case of unemployment. Since this proposal is mandatory in nature and requires contributions by both the employers and employees, a consensus must be reached among members of the public. Personally, I also would like to listen to more views before making a decision.
The unemployment relief in the West that we often talk about is in fact a contributory unemployment insurance. Monthly contributions have to be made under this system. If such a system is to be implemented in Hong Kong, some academics have projected that each employee will have to contribute 1.5% of the monthly salaries, whereas employers are also required to share the contributions. Employees who have become unemployed can receive assistance up to half a year. In fact, this is an entirely new system, but are the employees and employers willing to contribute 1.5% each? Consultation is indeed required. Even if we are really going to implement it, we still have to go through a lengthy legislative process. Moreover, the unemployment rate has been pushed up this time due to the epidemic. The unemployment rate in Hong Kong should not be so high under normal circumstances. So, these factors are worth considering.
What is more, some people have also proposed the establishment of a non-means-tested unemployment assistance to be fully borne by the Government. The Secretary for Labour and Welfare has already made some projections: If the unemployment rate remains at a relatively high level in the future, assuming that 130 000 persons will apply for the assistance and receive $5,000 or $9,000 per month, the Government will incur an annual expenditure as high as $7.8 billion or $14 billion, which is equivalent to 13% or 23% of the salaries tax received annually. This is extremely costly and is hardly supported by taxpayers.
President, I believe that in the final analysis, it is most important to revive the economy and create job opportunities in order to help the unemployed. One of the major factors leading to the current rise in the unemployment rate is that the border between Hong Kong and the Mainland has been closed for a long time, which has greatly affected our economic activities. The economy of the Mainland and Hong Kong are closely related. Closing the border is tantamount to blocking a major artery of Hong Kong, resulting in very serious problems. Coupled with the impact of the no-gathering order, the economy has been hit hard. Therefore, our economy and the unemployment rate should both improve gradually when the epidemic subsides and the border is reopened. The Financial Secretary has proposed in the Budget delivered last month a host of measures for post-epidemic recovery and revitalization of the economy. I hope these measures will be effective and help Hong Kong overcome the difficulties as expeditiously as possible. Thank you, President.