Ip wants civil service salaries frozen

Eunice Lam

New People's Party chairwoman Regina Ip Lau Suk-yee has proposed that government departments reduce spending by 5 percent and civil service salaries be frozen at present levels until the financial situation improves.

The suggestion was made as the party submitted 16 recommendations for next month's budget.

The party noted that,once revenues from bonds and fund returns were excluded, the administration has been in deficit for six consecutive years.

In fact, apart from the 2021-2022 fiscal year, the actual deficit over the past five years has exceeded HK$200 billion, with reserves now covering only 11 months of expenditures.

Ip, who is also the Executive Council convenor, urged the administration to halt the recruitment of new civil servants for six months and to introduce a salary adjustment mechanism linked to performance.

When asked if the party had made recommendations regarding the HK$2 transport subsidy scheme for seniors over 60, Ip replied, "We leave it to the financial secretary - we didn't make any recommendations for that scheme."

The party also suggested that authorities establish key performance indicators for major events in the city and consider increasing rates or property taxes to boost revenue.

Ip said the burden of rates primarily falls on the middle class, and she believes it is fair that they are contributing to the tax revenue.

"It would help if everyone paid a little more," she said.