The SAR government’s finances have undergone a significant downturn, leading to concerns over the state of Hong Kong’s economy. In response to this, the Legislative Council passed a motion urging the government to review public finances and explore strategies for increasing revenue and reducing expenditure. However, when it comes to lawmakers’ remuneration and expenses, there appears to be a disconnect.
Over the past few years, Hong Kong’s economic performance has been less than satisfactory, with the SAR government recording substantial fiscal deficits. The fiscal reserves, once exceeding HK$1 trillion, have now fallen to less than HK$700 billion. Despite hopes for economic recovery following the pandemic, Hong Kong’s sectors have been met with unexpected challenges. The government’s stamp duty and land sales revenue have significantly declined, and analysts predict a deficit exceeding $100 billion.
The financial difficulties faced by Hong Kong are not solely due to occasional or cyclical factors; they also stem from structural problems. Externally, changes in the geopolitical landscape and the rise of anti-globalization sentiments have negatively impacted Hong Kong. Domestically, challenges such as an aging population, land shortage, and labor scarcity hinder the city’s development.
While economic transformation takes time and requires investment in innovation, technology, and industrial diversification, the government also faces numerous tasks related to people’s livelihoods. As the search for a new economic growth engine continues, the SAR’s financial situation for the next few years remains uncertain.
In light of the enduring strain on the SAR’s finances, all parties must be prepared to face difficulties together. While options for increasing revenue and cutting expenditure should be explored, it is essential to avoid blindly targeting public welfare, as it would disproportionately impact the poor for the benefit of the wealthy. On one hand, Legislative Council members discuss revenue generation and cost management. On the other hand, a subcommittee of the Legislative Council sent a questionnaire to all members seeking their opinions on lawmakers’ remuneration and operating expense reimbursements. The results reveal that most lawmakers support upward adjustments, with some suggesting outrageous figures.
One particularly shocking suggestion from the questionnaire is a lawmaker’s proposal to raise salaries by an astounding 40%, from $107,000 to $150,000 per month. Furthermore, there are suggestions to increase the cap for entertainment and transportation expense reimbursements from approximately $230,000 to $300,000 annually. These recommendations are justified by the argument that lawmakers need to cater to the livelihood activities and welfare of their constituents, necessitating expenditures of $7 to 8 million on district affairs each year.
Attendance rates of Legislative Council members have long been a concern. When reviewing remuneration arrangements, authorities should consider implementing a value-for-money mechanism. It is only fair that those frequently absent from meetings without valid reasons not only be denied salary increases but also face pay cuts.
As the SAR government faces immense pressure to source additional funds and reduce spending, the remuneration of lawmakers must be approached with reason. Any adjustments should consider the strained financial situation and the interests of the broader community. It is crucial to strike a balance between ensuring lawmakers are adequately compensated for their public service and promoting responsible expenditure to address the current economic challenges faced by Hong Kong.
