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Following is a written reply by the Secretary for Labour and Welfare, Mr Matthew Cheung Kin-chung, to a question by the Hon Frederick Fung on the funding to improve elders¡¦ homes in the Legislative Council today (January 30):
Question:
In his policy address delivered in October last year, the Chief Executive said that the Government would earmark funding of $200 million in the next five years for implementing a plan to improve the homes of the elderly who live in relatively poor communities. In this connection, will the Government inform this Council:
(a) of the details of the aforesaid plan, including its implementation date, eligibility for application, the improvement works and districts covered, the funding mechanism, the estimated number of beneficiaries and the anticipated effectiveness of the plan, whether its targets are confined to tenants or owner-occupiers, and whether it will only apply to certain types of buildings (such as private buildings, public housing estates or other types of subsidized housing);
(b) whether it has assessed how the aforesaid plan can arouse the community to care for the elderly in need, and whether the Government will encourage the business sector to fulfil their social responsibilities by providing support for these elderly people on various fronts;
(c) how the aforesaid plan will complement the existing policy on care for the elderly; and
(d) given that in reply to my question on 13 December 2006, the Government said that in general there should be market demand for reverse mortgage products in a society with an ageing population, and the aforesaid plan can improve the conditions of the properties owned by the elderly, whether the Government will reconsider launching reverse mortgage schemes, so that elderly owner-occupiers can obtain cash income by mortgaging their properties?
Answer:
Madam president,
(a) Some elderly people who lack family support are living in dilapidated homes which affect their quality of life and domestic safety. To enhance the support to needy elders, the 2007-08 Policy Address has earmarked a one-off funding of $200 million to help improve their homes in the next five years.
The initiative aims to help elderly households in need implement minor home renovation works or acquire durable household items. However, it will not cover the maintenance or renovation expenses for those parts of the buildings which are not inside the residence units of the elderly households. We expect that over 40000 elderly households will benefit from the initiative. The Labour and Welfare Bureau and the Social Welfare Department are working out the implementation details of the initiative, and will brief the Panel on Welfare Services of the Legislative Council in due course.
(b) We hope that this initiative will encourage more members of the public and business organisations to show care and support to the needy elders using various resources (e.g. charity funds and sponsorship from the business sector) and through various means.
(c) ¡§Ageing in the community¡¨ is one of the underlying principles of the Government¡¦s elderly policy. This initiative will improve the home environment and safety of needy elders and support them to age at home.
(d) As stated in the Administration¡¦s reply to the question from the Hon Frederick FUNG Kin-Kee on 13 December 2006, while there should be market demand in general for reverse mortgage products in a society with an aging population, a commercially viable reverse mortgage product is unlikely to be attractive to elderly people in Hong Kong. It is because residential properties owned by elderly people who may be interested in reverse mortgage are generally very old, with relatively low market value. In addition, the expected average life expectancy of Hong Kong people is now 80 years. Assuming an elder joins a reverse mortgage scheme at the age of 60, the reverse mortgage term is rather long and will provide only limited monthly payments for him/her.
The aforementioned initiative to improve the home environment of elderly people will only cover the expenses on the renovation works and durable household items inside the residence units of the elders in need. It will not have significant impact on the asset value of the premises and the relevant reverse mortgage arrangement.
Ends/Wednesday, January 30, 2008
Issued at HKT 12:57
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