Hong Kong Policy Address: Members of opposition unconvinced, as ‘patriots-only’ lawmakers offer muted praise
Hong Kong Free Press
Hong Kong leader John Lee on Wednesday delivered his second Policy Address in a record-breaking three hour and 20-odd minute speech titled “A Vibrant Economy for a Caring Community,” in which he introduced a raft of measures spanning from easing property taxes to boosting childbirth.
The wide-ranging Policy Address also included a vow to complete the legislation of Article 23 – the city’s own security law – next year, and an emphasis on guarding against “soft resistance” within the city.
Lee’s speech was met with general praise from the city’s “patriots-only” lawmakers, who said it was “comprehensive” and “responsive to [their] policy recommendations and demands.”
But outside the legislative chamber, one of the last remaining pro-democracy groups, the League of Social Democrats, continued calls for full democracy, while the opposition Democratic Party said Lee’s address lacked a clear direction for reviving the economy and failed to preserve Hong Kong’s uniqueness.
HKFP rounds up reactions to some of the the key measures laid out in Lee’s second Policy Address.
Article 23
Lee announced on Wednesday that his government would complete legislation for the city’s own security law, separate from the Beijing-imposed national security law, in 2024. Article 23 of the Basic Law, the city’s mini-constitution, stipulates that Hong Kong shall enact its own law to prohibit seven national security-related acts, including treason and the theft of state secrets.
A previous attempt to legislate Article 23 in 2003 resulted in mass protest of some 500,000 people – then the biggest protest the city had ever seen – and the proposal being shelved for 20 years.
Following months-long pro-democracy protests and unrest in 2019, Beijing imposed a sweeping national security law in the city the following year. While criminalising subversion, secession, collusion with foreign forces and terrorism, it also requires the city to enact its own security legislation.
Speaking to the press after his speech, Lee defended the need for Article 23 legislation by saying that it is a constitutional duty that the government “had not been able to fulfil for over 20 years.”
Lee also said that the “pain” and “hurt” of 2019 would make people realise the necessity of national security legislation.
During press conferences held by lawmakers after Lee’s Policy Address on Wednesday, most succinctly expressed their support for Lee’s proposal, including the largest pro-Beijing party in the legislature.
“The Democratic Alliance for the Betterment and Progress of Hong Kong (DAB) fully supports the clear timeline of Article 23 legislation,” said chairperson Gary Chan in Cantonese.
Tik Chi-yuen, who identifies as the only non-establishment lawmaker, was also the only lawmaker at any of the press briefings attended by HKFP to raise concerns over the compatibility of Article 23 and the national security law, as well as the timeline of its legislation.
“[The national security law] was passed Chinese-style, whilst Article 23 will be passed locally, under the common law,” Tik said on Wednesday in Cantonese. “Are the legislations of the national security law and Article 23 complementary or do they conflict?”
He added that stability had largely been restored since the enactment of the national security law, and there was no urgent need for Article 23.
“We should be given sufficient time for citizens to discuss, for the public to be consulted, and for the government to explain it well,” Tik said.
Kelvin Siu, an executive committee member of the Democratic Party, also said on Wednesday that the government should not proceed with the legislation before addressing the public.
“The government needs to explain to Hong Kong people about the differences between Article 23 and the national security law regarding the respective crimes and the methods of law enforcement,” Siu said in Cantonese.
Stamp duties easing
Lee also announced on Wednesday the halving of several property taxes with immediate effect. The taxes were among some of the long-standing measures designed to curb property speculation and to ensure affordable housing in the world’s least affordable housing market.
The period of the Special Stamp Duty (SSD) – a measure to prevent speculation – was shortened from three to two years, meaning that if a homeowner sells their property two years after acquiring it, they would not need to pay the 10 per cent SSD.
Meanwhile, both the Buyer’s Stamp Duty (BSD) and the New Residential Stamp Duty (NRSD) were reduced from 15 per cent to 7.5 per cent.
Lee also introduced a stamp duty suspension arrangement for incoming talent, replacing the previous refund arrangement. For visa-holders coming into the city via various talent schemes, the payment of BSD and NRSD would be suspended when they purchase a home. The amount would only be collected if they do not become a permanent resident.
“The policy intention is to retain them as future Hong Kong permanent residents,” a government source said.
Holden Chow, a lawmaker and vice chair of DAB, said he welcomed authorities easing of property stamp duties. “It will help local families and non-local talent to buy properties,” Chow said in Cantonese.
Pro-Business party Business and Professionals Alliance for Hong Kong (BPA), which has advocated for withdrawing all measures in place to curb property sales, also welcomed the government’s move.
Louise Loong, a lawmaker representing the real estate and construction sector and a member of BPA, said that easing stamp duties would help restore vitality to the property market, but would not cause property prices to rise rapidly.
Loong suggested fully withdrawing all the measures that curb the property market if there was no sign of speculation within the next two or three months.
Boosting childbirth
Also unveiled as a new measure was a HK$20,000 bonus to parents for every baby born on or after Wednesday to promote childbirth, as the city saw a record-low fertility rate.
“We will provide a one-off cash bonus of HK$20,000 for each baby born today or after in Hong Kong to a parent who is a Hong Kong permanent resident,” Lee said. The measure will remain in place for at least three years before it is reviewed.
Hong Kong’s fertility rate has fallen to a record low in recent years. The fertility rate in 2021 stood at 0.77, down from 1.29 in 2012, according to official figures. People are also getting married later.
The number of couples without children has also overtaken one-child families in Hong Kong, a survey released in August found.
The cash bonus policy was among the most divisive and debated measures rolled out on Wednesday.
“[The HK$20,000 bonus] will never be enough. but at least it is better than nothing,” pro-Beijing lawmaker Junius Ho said in response to a question from HKFP during a press conference on Wednesday. The policy signified the broader social issue of ageing, he added.
“By 2030 there will be one third of our population exceeding the age of 60,” Ho said.
Speaking at another press conference, pro-establishment lawmaker Doreen Kong argued that the city needed a more comprehensive population policy. “It’s not just about a baby bonus,” Kong said.
But Regina Ip, a top government advisor and chair of the New People’s Party, said the baby bonus was one measure out of a package of policies promoting child birth, including a tax deduction for use of reproductive technology.
“The people who want to use reproductive technology to have children are the people who most want to have children. So I’m glad the government has recognised their needs,” Ip said.
Ip’s comment referred to the proposed tax reduction for expenses on assisted reproductive services, which would be subject to a ceiling of HK$100,000 a year. But a government source said on Wednesday it remained to be confirmed which services would qualify for tax deduction.
Responding to the child birth policies, the Democratic Party also said on Wednesday that the proposed incentives were insufficient to reverse the falling fertility rate, as the motivation to raise a child was determined by the wider social environment.
A fair education system, a free and open society, and a healthy environment for children to grow were the essential factors in the decision to have children, they said.
Additional reporting: Hillary Leung, Irene Chan
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