- Money alone is not the answer, but lawmakers must show a sense of urgency to ease the burden on those most affected by the ongoing unrest
After 20 weeks of political turmoil and 15 months of buffeting by the United States-China trade war, it is a measure of the city's economic stress that the government has rolled out its third batch of relief measures in two months, along with another appeal to landlords to ease the pressure on small business operators.
Financial Secretary Paul Chan Mo-po yesterday announced a HK$2 billion package to bolster employment and support enterprises. Targeted at the logistics and tourism sectors, those hardest-hit by continuing anti-government protests, it includes HK$1.35 billion of subsidies of fuel costs for taxis and commercial vehicles. "We hope property owners and landlords will support tenants (such as) retailers, restaurants, tourism and logistics operators," Chan added.
The latest relief measures come after a HK$19.1 billion package in August, followed by another round worth HK$1.4 billion last month. They are now in the queue with earlier initiatives for funding approval by Legco. Once again we urge lawmakers to put measures that need their approval before politics and pass them expeditiously.
Finance chief rolls out fresh HK$2 billion package of relief measures
The government has had to choose between the short-term goal of preserving a budget surplus, and risking a deficit by using reserves to help businesses ride out a deepening economic downturn. The extent of the downturn has unfolded almost by the day. Exports shrank 4.3 per cent year on year in the eight months to the end of August. The economy grew by only 0.5 per cent year on year in the first half of 2019, the worst result since the global financial crisis. Tourism, a pillar of the city's economy, suffered a 45 per cent decline in arrivals in the first 10 days this month, which includes the National Day "golden week" of shopping, following steep year-on-year falls in September and August.
Chan says the administration will show the way to private landlords by extending rent reductions to tenants at government properties such as leisure venues, snack shops at parks, and waterfront facilities. All these measures may be dwarfed by the weight on the economy of the political crisis and the trade war. But so long as they are targeted, especially at tourism-oriented sectors, every little bit helps. They may improve sentiment in some of the worst hit areas, where the livelihoods of lower-income groups are most affected.
In international finance and economic meetings last week, Chan was able to cite the city's stock market performance and financial stability as evidence of resilience in the face of adversity. That resilience is reflected in the way people are getting on with their lives. They need reconciliation of differences and the healing of wounds. Order cannot be restored by spending money alone. A political crisis still needs a political solution. Meanwhile, Legco should show a sense of urgency in approving funding for relief measures.
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