No evidence to support claim that rent increases cause financial hardship
Following is a question by the Hon Fred Li Wah-ming and a reply by the Secretary for Housing, Mr Dominic Wong, in the Legislative Council today (Wednesday):
Question:
It is indicated in several surveys on the poverty problem published in recent months by community organisations and tertiary institutions that the problem of disparity between the rich and the poor in the territory is acute, and that the low- income group is leading a very difficult life. In this regard, will the Government:
(a)
(b)
(c)
Answer:
Mr President,
inform this Council of the main causes giving rise to the present poverty problem;
give a response regarding the findings of the surveys conducted recently by the Oxfam Hong Kong and the Hong Kong Council of Social Service that the extreme poverty of the low-income group has been caused by the continuing increase in the rental of domestic premises; and
consider revising the present policy of reducing the number of public rental housing flats, so that more people in the low-income group can be accommodated in such flats, thereby alleviating their burden in meeting rental expenses; if not, whether it will adopt other measures to narrow the disparity between the rich and the poor?
Some degree of income disparity exists in any society. In all countries, economic growth is the primary means of generating income increases for the community at large. Given Hong Kong's continued economic growth, the income of every income group, including low income households, has registered substantial gains. Over the past decade, median household income in Hong Kong has increased by 239% in nominal terms, far higher than the 125% increase in the Consumer Price Index (A). After discounting inflation, this reflects a substantial growth of income in real terms by 51%.