The Legislative Council (LegCo) yesterday passed the District Councils (Amendment) Bill that proposes financial assistance to people taking part in district elections from 2007 and onwards.

For candidates who have secured no less than 5 percent of the total number of valid votes, he or she will be granted financial assistance at HK$10 per vote capped at 50 percent of his or her actual campaign expenses. This will be given on submission of audited accounts.

Secretary for Constitutional Affairs Stephen Lam said the primary purpose of the bill was to encourage interested people to take part in politics and the government has ongoing plans to upgrade the profile of the district councils and district councilors in Hong Kong's constitutional order.

The legislative proposal had widespread support from political parties and lawmakers across the board.

The Liberal Party's Howard Young welcomed the proposal saying that this would be the government's second step to recognize party politics after offering the same kind of financial assistance to candidates taking part in the 2004 Legislative Council election.

In December 2005, the government proposed all district councilors be included in the expanded Election Committee while they could also select five legislators among themselves, thus giving the second ladder of political parties bigger chance to enter politics.

Although the said proposal did not meet the approval of two-thirds of the Legislative Council, the government increased the number of elected District Council seats by five to 405 seats based on population increase for this year's election.

Replying to some lawmakers' complaint that the financial assistance is too small, Lam said: "It may be true as many (LegCo) members say the HK$10 per vote scheme is not that much, but we have a whole set of mentality and will continue our work."

As to why the government only subsidizes 50 percent of the election expenses, he said he had drawn references from Germany and Canada. "At this stage of constitutional development, candidates shall be committed to their election expenses and it is fair for them to bear half of the expenses," he said.

"As can be seen from the expense analysis of the 2003 District Councils election and 2004 LegCo election, each candidate spent around HK$20 on each voter and so the assistance of HK$10 per vote is appropriate."