Publication Date : 10-05-2013
Hong Kong faces an unprecedented "fiscal cliff" if the Legislative Council (LegCo) does not pass the Budget for the coming fiscal year by the middle of this month, warned Chief Executive Leung Chun Ying.
Flagging what he termed "serious and irreversible consequences", he called on radical lawmakers who had been staging a filibuster - blocking the LegCo's scrutiny of the Bill - over the past three weeks to desist.
"Should we fail (to pass the Bill), there will be grave impact on the government's finances and the livelihood of the people."
He said it will hurt, in particular, the needy who are supposed to get financial help under new proposals in the Budget. Another blow would be to Hong Kong's standing in the international community, he added.
At a robust question-and-answer session in the LegCo - his second since taking the helm last July - he touched on hot-button issues, including lawmakers' attempt to stymie donations to victims of last month's earthquake in Sichuan. That could hinder relations between Hong Kong and mainland China, he said.
The Budget was unveiled in February by Financial Secretary John Tsang, with sweeteners including an extra month's allowance for social security recipients, and electricity tariff subsidies.
But unhappy that it lacked proposals for a universal pension scheme, four legislators from the League of Social Democrats and People Power submitted more than 700 amendments to the Bill in a bid to force the government's hand. Tsang is due to meet them today. But Leung made it clear his administration will not be giving in to their demands.
"By allowing certain members to impose conditions on the administration by filibustering, that will not be fair to all legislators."
Hong Kong's fiscal year ended on March 31. Government spending since then has been covered by an interim fund, which will last till end-May. Pan-democrats said if the Budget is not passed by then, the government could table a second interim funding propo-sal. But Secretary for Financial Services and the Treasury Chan Ka Keung said this would cover only recurring payments after May.
It will not cover one-off or new expenses - such as the electricity tariff subsidies, and HK$30 billion (US$3.87 billion) in funding to subsidise cleaner diesel vehicles.
Professor Francis Lui, head of economics at the Hong Kong University of Science and Technology, said he believes both sides will come to a compromise to avoid being blamed for a crisis.
Yesterday, Leung also touched on the challenges of trying to solve the land shortage, saying he is optimistic the government is on track to build 79,000 homes in the coming five years.
Noting the diverse views on how land should be used, he said: "I understand that everyone has his own views but spare a thought for the 200,000 households on the waiting list for a home."
On universal suffrage, he denied suggestions that he has to seek Beijing's permission before launching a public consultation.
"We don't have to wait for anyone to give the go-ahead. We have enough time to achieve universal suffrage by the 2017 election."
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