Hong Kong lawmakers slam HK$20 billion welfare property plan as ‘failed’ policy
Government reveals only up to HK$240 million spent on five premises in five years since launch of plan
Hong Kong lawmakers have labelled a HK$20 billion (US$2.6 billion) government plan to buy properties for social welfare purposes as one of the biggest “failed policies” in recent years, noting that only up to HK$240 million has been spent on five premises over the past five years.
Given most of the original budget has not been used, the government on Monday requested lawmakers approve reducing the earmarked amount to HK$5 billion, while also defending the results of the policy by saying it would not be “suckers” in deals with landlords even if there was an urgent need for places for social welfare.
The Labour and Welfare Bureau said in a Legislative Council panel meeting that the Social Welfare Department had considered 191 sale proposals as of March 31 this year and bought only five premises at about HK$240 million under the scheme launched in 2020.
The expenditure represented just 1.3 per cent of the original HK$20 billion earmarked by Finance Secretary Paul Chan Mo-po in 2019 for a plan to ease a long-term shortage of space for the elderly and children by providing service facilities to about 86,000 people.
“This policy has been one of the most failed policies in recent years,” lawmaker Michael Tien Puk-sun said. “The policy means you tell people you want to buy something while showing them what’s in your coffers. How much do you expect them to offer?”
He said the policy did not allow the government to report to Legco about each property deal with landlords.