HONG KONG - Hong Kong Chief Executive Donald Tsang said Wednesday the government will introduce a new scheme to subsidize local elderly people residing in Guangdong province.

Upon approval, eligible recipients will be able to receive a full-year allowance in Guangdong without the need to come back to Hong Kong, said Tsang when delivering the 2011-2012 policy address at the Legislative Council on Wednesday, adding the rate of the allowance will be the same as that for the local Old Age Allowance (OAA) in Hong Kong.

Tsang said the scheme is based on considerations that Hong Kong elderly people settled in the Mainland mostly live in Guangdong, which is also a place where the elders can still maintain close contact with their relatives and friends in Hong Kong and obtain family support easily.

Furthermore, there are especially close ties between Guangdong and Hong Kong in many aspects. The policies under the Hong Kong/Guangdong Co-operation Framework and with the completion of a number of major transport infrastructure projects, the two places will become more closely integrated and travel will be more convenient, the city's chief said.

Apart from that, the government will continue to strengthen co- operation between hospitals in Hong Kong and the Mainland, and negotiate with the Mainland measures to streamline the formalities for setting up clinics and hospitals there.

"We will also explore with Guangdong the cross-boundary patient conveyance arrangements to make it more convenient for Hong Kong patients residing in the Mainland to return to Hong Kong for medical treatment," Tsang said.

He also noted that the liberalization measures for the medical sector under the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA) allow Hong Kong medical practitioners to practise or set up clinics or hospitals in the Mainland. In this way, senior citizens residing there may also receive Hong Kong-style medical services.

The government also proposed to enable elderly people aged 65 or above and eligible people with disabilities to travel on the general Mass Transit Railway lines, franchised buses and ferries anytime at a concessionary fare of 2 HK dollars (about 0.26 US dollar) a trip.

Other concessions include the introduction of Public Swimming Pool Monthly Ticket Scheme to lighten the burden of frequent elderly swimmers and promote swimming among the public, according to Tsang. ($ 1 = 7.78 HK dollars)