Press Release - April 23, 2003

Following is the transcript of the media session chaired by the Chief Executive of the Hong Kong Special Administrative Region (HKSAR), Mr Tung Chee Hwa, on measures to relieve the impact of atypical pneumonia on the Hong Kong economy today (April 23):

This morning the HKSAR Executive Council held a special meeting to discuss a series of measures to reduce the impact of the outbreak of atypical pneumonia on various sectors. The relief measures we discussed include how to reduce the impact of the outbreak of atypical pneumonia on our economy, help the community tide over the current difficulties and prepare the ground for the recovery of our economy when we have been able to contain the disease. We will introduce our legislative proposals and seek funds from the HKSAR Legislative Council as soon as possible in order to implement these measures. This afternoon, the HKSAR Financial Secretary will attend the meeting of the Financial Affairs Panel of the HKSAR Legislative Council to explain the proposals in detail.

The proposed measures include the following. There are eight of them altogether.

In order to lower the operating costs for the various affected sectors, we will waive the rates, water charges and sewage charges and trade effluent surcharges for one quarter, or four months. Rent concessions for one quarter will be made to most commercial tenancies in public housing estates and certain tenancies managed by Government departments. This rent reduction will be from 30 per cent to 50 per cent. The total concession will be approximately HK$1.09 billion.

Number 2 is to waive licence fees for most of the affected sectors for one year, including tourism, catering, entertainment, public light buses, school buses and tourist coaches. The concession altogether is HK$280 million.

We will waive the rates, water charges and sewage charges for the general public for one quarter, or four months. The concession amount is HK$1.77 billion. We will also rebate to the taxpayers part of the salaries tax, amounting to approximately HK$2.3 billion.

We will set up a HK$3.5 billion loan guarantee scheme for industries badly hit by the disease. Under the scheme, the HKSAR Government will provide guarantee for loans by participating lending institutions to operations in those industries for payment of their employee salaries. This will protect employment.

We will create 21,500 training places and temporary jobs to step up service training for various affected sectors. The workers will provide home cleaning and maintenance services to the needy elderly and the disadvantaged, and to clean up Hong Kong. The expenditure earmarked for this is HK$430 million.

We will allocate HK$1 billion to launch large-scale publicity and promotions internationally and locally when the disease is brought under control to promote and help various trade activities back to normal.

And seventh, we will allocate HK$1.3 billion for medical research and enhancing public health as longer-term measures to control the disease. We will also apply for allocation of HK$200 million to provide assistance and professional training for health care workers.

And eighth, in the next six months, the HKSAR Government will not propose any adjustment to Government fees and charges.

The entire package involves a total amount of HK$11.8 billion. I would like to emphasise that the entire package of measures is a very well and thoroughly considered one. The measures seek to relieve the short-term impact of atypical pneumonia on our economy. They have also taken into account the medium-term need to make sure our budget is in balance and the possible impact of the package on the financial market.

Our priority remains to prevent and control the disease and this must be above all the most important task we all have. However it is necessary for us to plan for arrangements to revive our hard-hit economy in the medium and longer term. I believe that the package announced today will relieve to a certain extent the short-term difficulties of various sectors.

Thank you.

For updated information and latest news on respiratory tract infections, please visit the special home page on the subject at www.info.gov.hk/info/infection-e.htm, and the HKSAR Department of Health website at www.info.gov.hk/dh/ap.htm as well as the e-bulletin at www.news.gov.hk/en/index.shtml.