More to benefit from transport subsidy in HK

The Hong Kong government expects thousands more poor workers to benefit from the HK$600-a-month transport subsidy after relaxation of requirements for the scheme that is meant to encourage workers from outlying communities to look farther afield for employment.

The Work Incentive Transport Subsidy Scheme, started last October, aimed at easing the traveling expense burden for low-income workers commuting to other areas for work.

Workers now will be allowed to apply for the subsidy on an individual basis starting Saturday, as long as they earn less than HK$7,300 a month and have assets worth less than HK$72,000.

The individual income limit was adjusted from HK$6,500 to HK$7,300, excluding employee's contributions to the Mandatory Provident Fund in March, while the personal asset limit was increased to HK$72,000 from HK$44,000.

Previously, the scheme was open to applicants who could pass a means test based on income for all members of the applicant's household.

The program allows applicants to claim a subsidy for the previous six to 12 months in each application, with the subsidy payment commencing from April 2011 at the earliest.

Announcing an earlier-than-expected mid-term review of the scheme on Friday, secretary for labour and welfare, Matthew Cheung Kin-chung, said the change was made in response to public demand, especially in consideration of the fact that some potential applicants, for various reasons, were unable to obtain salary information from family members.

Cheung said the government doesn't think the scheme will be abused, contrary to his own previous statements, made in February, in which he said he feared people might transfer money to other family members if the applications were assessed on an individual basis.

"There may be a few cases of abuse, but generally, for the benefit of a larger group of low-income workers, we are prepared to do it and in the process, we will keep monitoring the applications closely."

Cheung admitted the application rate was less than satisfactory, with 60 percent of applicants coming from two-to-three-member households, while less than 10 percent were individuals.

The scheme was originally expected to provide assistance to 200,000 beneficiaries. Only 43,500 applications actually were received.

"We have no idea whatsoever of the asset situations of Hong Kong citizens, the only thing we can estimate is the income bracket to deduce the number of possible applicants," Cheung remarked.

"We want to benefit many more, and I believe thousands and thousands of low-paid workers will benefit from the scheme," he said, adding that the HK$4.5 billion reserves should be enough for the coming three years.

Ng Wai-tung, community organizer from the Society for Community Organization, welcomed the relaxed mechanism to evaluate workers' incomes and assets, on an individual basis, but said the amendment comes a bit "too late".

Ng said low-income workers have earned at least HK$6,944 a month since the minimum wage law took effect in May of 2011, but the original income limit for the transport allowance was HK$6,500 from April, 2011 to February this year, blocking the neediest people from getting help from the program.

He also said he doubted the current income limit of HK$7,300 a month will actually benefit many more people, pending the minimum wage review.