Press Releases
Government responds to Basic Needs Study by HKCSS
In response to media enquiries on the Basic Needs Study by the Hong Kong Council
of Social Service (HKCSS), a spokesman for the Health, Welfare and Food Bureau
said tonight (May 17) that Hong Kong has been providing comprehensive assistance
to those in need in the society within its welfare system.
Apart from direct monthly financial assistance provided under the Comprehensive
Social Security Assistance (CSSA) Scheme, Old Age Allowance and Disability
Allowance, the Government has also been providing a wide range of heavily
subsidised housing, education and medical services.
The spokesman said: "It has been a hard earned achievement to strike a balance
between maintaining a low tax regime and the provision of a comprehensive basic
safety net.
"Besides, we are having an ageing population while at the same time have to
maintain a tax system that gives us a competitive edge, continuous demands for
increases in social welfare benefits will not only make our welfare system
unsustainable but also undermine the community's resilience in the face of
adversity. It is not conducive to our economic development in the long term.
Therefore, we should refrain from making unjustified and drastic changes to our
welfare policies and measures, lest it should create a culture of dependency."
The current CSSA standard rates have covered:
*Food, fuel, transport, telephone and other basic expenses;
*Special care of the elderly, the disabled and children through the provision of
higher standard rates, special grants and supplements;
*Elderly recipients are entitled to special grants to cover expenses on glasses,
dentures, removal expenses, fares to hospital/clinic, and medically recommended
diets and appliances;
*School children are entitled to a full range of special grants to cover school
fees, meals, fares to and from schools, examination fees, and a flat-rate grant
of up to $3,810 to cover books, uniform and other expenses; and
*CSSA recipients already receive free medical service from public hospitals and
clinics, including medicine.
As for the suggestion by HKCSS's study that CSSA should take into account
private medical consultation fees, the Government regarded it as unreasonable as
the existing public medical services has been taking care of all CSSA
recipients, the spokesman said.
The resources allocated to social welfare by the Government had been increasing
year by year in the past 10 years. Spending on the CSSA had increased from $3.4
billion in 1994-95 to this year's $17.8 billion, while the number of recipients
had jumped from 140,000 to 540,000, which meant one in every 13 people were
receiving CSSA.
"Initial estimate for the implementation of the proposals of the HKCSS would
cost the public purse an addition of over $5 billion every year in CSSA, which
represents 30 per cent of our current expenditure in this aspect. We have strong
reservation over the proposals. The community is also unlikely to agree with
them," the spokesman said.
The spokesman also pointed out that the suggestions by the HKCSS had exceeded
basic needs to focus on quality of life. The proposed adjustment would mean the
average monthly cash assistance for a family of four would be increased from
$9,118 to about $13,000. The sum includes mobile phone charges, religious ritual
commodities and expenses for attending funerals and banquets.
"In fact, the present level of CSSA has not only covered their basic needs, it
has also taken care of the special needs of the recipients. The CSSA is annually
adjusted according to the Social Security Assistance Index of Prices (SSAIP) and
there is no pressing need for further fundamental adjustments.
"The standard rates and the special grants under the CSSA scheme have already
covered many items proposed by the HKCSS. For instance, newspaper and telephone
charges are covered under the standard rate, and their price changes are
reflected in the basket of goods and services covered by the SSAIP.
"We need to differentiate between what are 'basic needs' which are catered for
under the safety net through the CSSA scheme, and 'development needs' which may
be catered by other services.
"Many of the HKCSS' requests have in fact been met in one way or the other
through channels other than CSSA. For example, in order to encourage students to
receive all rounded education, the Education and Manpower Bureau has earmarked a
recurrent provision of $75 million per annum starting from the 2005-06 financial
year to enable schools to provide school-based after-school learning and support
programmes, in collaboration with non-governmental organisations, so as to
increase students' learning effectiveness, broaden their experiences outside
classroom, and raise their understanding of the community and sense of
belonging," the spokesman added.
The HKCSS completed its Basic Needs Study and submitted to the Administration in
May 2006.
Ends/Wednesday, May 17, 2006
Issued at HKT 21:52
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