A Liberal Party survey indicates that most Hongkongers want some free shopping money from the government.

The survey was conducted in regard to the proposed distribution of cash vouchers to stimulate the economy.

As for the voucher amount, most people said they'd prefer HK$1,000 or more.

Financial Secretary John Tsang plans to meet with political parties and legislators to solicit their suggestions on the 2009-10 Budget, and he will meet with three separate groups today.

From last Wednesday to Sunday, the Liberal Party surveyed 864 citizens, asking what they thought about the proposed voucher stimulus plan.

Announcing the results of the survey yesterday, party Chairman Miriam Lau said 61 percent of respondents were supportive of the idea, and 26 percent were opposed. As to the voucher amount, 24.2 percent preferred HK$1,000 or more, and 24 percent preferred HK$801 to HK$1,000.

"In the Liberal Party's view, it is appropriate to issue a shopping voucher of HK$1,000 to each permanent resident," Lau said. "This would cost the government less than HK$7 billion."

She pointed out that the current economic deadlock was due to a lack of confidence and reluctance to spend money. And if people continue not to spend money, the retail sector and small and medium-sized enterprises will suffer badly.

The party also proposed a tax rebate and refund of the provisional tax already paid by the taxpayers.

John Tsang's press secretary said the government will review the proposals to decide whether such a plan should be implemented.

Li Kui-wai, associate professor in City University's Economic and Finance Department, was opposed to both shopping voucher and provisional-tax refund proposals.

"The government will be involving too deep in the private sector and further deviating from the established system if it accepts such extraordinary proposals," he said. "I would prefer the government increase public expenditures, and cut taxes and public housing rent within the context of the Budget." From an economic point of view, he said, the shopping vouchers would provide very little impact - no more than 0.5 percent of the GDP in the short term.

The government has very strong reservations about the shopping-voucher proposal, a well-informed source said. "It will not necessarily stimulate the economy. There is also a big question mark over details of the plan as to how it can be implemented. Again, it is not a targeted plan, as everybody will get the money. What's the point of giving HK$1,000 to Li Ka-shing?", he said, referring to the billionaire tycoon.

The Hong Kong Federation of Trade Unions also suggested on Friday that cash vouchers be distributed to boost consumption.

(HK Edition 11/25/2008 page1)