HK blames protesters for slowdown
Print Edition
MONTHS of Occupy Central protests are to blame for Hong Kong’s economy falling well short of predicted growth in 2014, the city’s leadership said yesterday.
It also said that “prolonged political bickering” could do more damage to investor confidence.
The growth rate was just 2.3 percent last year, down from 2.9 percent in 2013 and far slower than the 3 to 4 percent predicted in last year’s budget speech.
Delivering his budget for 2015-16, Finance Secretary John Tsang said local industries had been damaged by the protests which began in late September last year and brought parts of the city to a standstill.
“Prolonged political bickering is detrimental to public administration and the international image of Hong Kong as a stable, law-abiding and efficient city,” he said. “It may even dampen investors’ confidence in Hong Kong. Such self-inflicted harm does not serve the city well.”
Tsang announced one-off measures to support sectors he said had been hit by the protests.
“The Occupy movement affected the tourism, hotel, catering, retail and transport industries,” he said. The relief measures include the waiving of license fees for restaurants, hotels and travel agents as well as waiving administrative fees for taxis and buses.
Tsang predicted “even more vehement” disputes in Hong Kong as it grapples with how its next leader should be chosen.
The central government has promised that the public will, for the first time, be able to vote for the next chief executive in 2017. But it says candidates must be nominated by a committee.
That decision triggered 79 days of street protests.
The economy’s disappointing growth was also due to the weak eurozone and Japan’s recession, said Tsang, adding that it was the third consecutive year growth had fallen short of the annual average of 3.9 percent expansion over the past decade.
The year ahead would be “challenging,” with predicted growth of 1 to 3 percent as expected US interest rate rises, volatile oil prices and uncertainties in Europe played their part.
He announced a raft of measures to boost public spending, after cutting it last year, with the government coming under increasing pressure over social inequality — frustrations which also fueled the protests.
These include reductions in income tax and rent support for low-income families in public housing.
However, there would still be a budget surplus of HK$63.8 billion (US$8.2 billion) for the 2014-2015 period, Tsang said.
Protesters outside the legislative council building questioned the government’s spending choices before the budget speech.
“Why is it so many people cannot afford a house or that they have to pay such high rents?” asked Ramon Yuen, an accountant. “It’s because the government reacts too slowly ... they are too conservative. The government should cut down on the surplus and spend more.”
District Councillor Ronald Yeung said: “Many grassroots people are still under financial pressure in their daily lives. They should spend and invest a lot more to help these people.”
Tsang said HK$50 billion would be earmarked for “retirement protection” for the elderly, but gave no further details.
He said an aging population posed one of the biggest challenges and the government would allocate resources to improve services for the elderly.
Tsang also said a 2015-16 land sale program would include sites capable of providing 16,000 new homes in one of the world’s most expensive property markets.
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