The HK$6,000 MPF fiasco

Wong Ting-kwong played a dual role in the early spring of 2011 when Financial Secretary (FS) John Tsang Chun-wah moved to quell an angry public outcry by agreeing to hand out HK$6,000 in cash to citizens in lieu of his planned HK$6,000 injection into Mandatory Provident Fund (MPF) accounts.迷你倉價錢 The FS had made a similar injection in 2008 by depositing HK$6,000 into to accounts of MPF contributors earning less than HK$10,000 per month. At the time, Wong was sitting as a non-executive director of the Mandatory Provident Fund Schemes Authority. He was among the 30 lawmakers from the pro-establishment camp who urged the FS to announce the controversial payout after two emergency meetings. He is also a member of the Democratic Alliance for the Betterment and Progress of Hong Kong. Two years later, Wong says he still feels helpless looking back on the 2011 fiasco. "The first injection did not cover too many people. Yet there were, in fact, a lot more unfortunate people (ie those without jobs) who could not benefit," he recalled. "The second injection sparked very strong backlash because society at large had become more demanding and public opinion was changing very quickly. Most importantly, there were a lot more needy people but who were ineligible for HK$6迷你倉庫000, thus prompting public opinion and the political parties to pressure the FS to provide greater relief." In 2008, the public neither applauded nor opposed the MPF injection. Upon the announcement of the second injection in the 2011-12 Budget, nothing happened in the first few days. But things unfolded very quickly after a week, with strong voices crying foul over the MPF injection.Prices were surging, living expenses were climbing. People complained that the MPF injection announced by the FS would not benefit them until they retired at 65. People also made loud complaints about high administration fees for trustees who, they feared, could lose their contributions in the investment markets. The widespread dissatisfaction prompted massive protests and marches organized by political parties and civilian organizations. Pro-establishment lawmakers met the FS to try to find a way to cool the public anger as quickly as possible. After two lengthy meetings, Tsang agreed to a cash spending spree — a HK$6,000 handout for every eligible person over 18 as well as tax rebates. The MPF injection was canceled. Tsang also made history by revising the Budget after it had been tabled before the Legislative Council. Contact the writer at joseph@chinadailyhk.com儲存