HONG KONG: The Legislative Council yesterday passed a motion calling on the government to tackle wage disparities and ease the burden of those people living in poverty.

Legislator Tam Yiu-chung, chairman of the Democratic Alliance for the Betterment and Progress of Hong Kong, moved the original motion at the Legislative Council meeting, noting that in view of the likelihood of a fiscal surplus, the government is capable of offering more to help people in need.

Financial Secretary John Tsang, who is due to deliver the 2010-11 budget on February 24, told a district budget consultation forum last night that the economy is beginning to show positive signs. However, as the economic situation will fluctuate, he said the budget will continue to follow the principle of fiscal prudence.

In responding to the Legislative Council motion, Secretary for Labour and Welfare Matthew Cheung said the government would endeavor to tackle the problem through a multi-faceted approach. It would provide subsidized assistance to needy people in such areas as welfare, housing, medical service and education to cater to the basic needs of the low-income group and eliminate generational poverty.

Meanwhile, Deloitte, one of the big four accounting firms, predicted a HK$5 billion surplus, against the government's budgeted deficit of HK$39.9 billion, for the 2009-10 financial year.

In view of the improving economy, the firm proposed a range of instant and long-term measures to benefit the people and enhance Hong Kong's competitiveness.

Among other things, it proposed a waiver of 75 percent of 2009-10 final salaries and profits taxes, subject to a ceiling of HK$10,000. It also proposed waiving the 2010-11 rates for each ratable tenement, subject to a ceiling of HK$1,500 per quarter.

It is also proposed the corporate tax rate be reduced by 0.5 percent to 15 percent over three years.

(HK Edition 02/05/2010 page1)