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Following is a question by the Dr Hon Chiang Lai-wan and a written reply by the Secretary for Home Affairs, Mr Tsang Tak-sing, in the Legislative Council today (February 25):
Question:
This year's Policy Address proposes to set up a $300 million Youth Development Fund (YDF) to support innovative youth development activities which are not covered by existing schemes, including subsidy in the form of matching funds for non-governmental organisations to assist young people in starting their business. Earlier on, there were media reports that a kind-hearted landlord took the initiative to offer young people aged between 18 and 35 intending to start their business a ground-floor shop space in Kowloon at a nominal rent for operating a restaurant. In order to increase upward mobility opportunities for young people so as to promote social harmony and stability as well as raise the success rate of YDF in promoting innovative youth development activities, will the Government inform this Council whether it will consider relaxing the relevant policies and introducing the following measures to encourage industrial and commercial organisations as well as individuals to actively fulfill their social responsibility and assist young people in starting their business:
(1) for landlords who are willing to let shop spaces to young people at a nominal rent for them to start their business, (i) granting rates and government rent concessions for the properties concerned throughout the terms of tenancies, and (ii) allowing the amount undercharged as a result of the below-market-rate rentals to be deducted from the assessable profits/income of such landlords in the assessment of the tax payable by them;
(2) allocating some government lands which have not yet been planned for development and putting up simple and temporary structures on such lands for use by young people to start their business;
(3) following the practice of some countries in Europe and America to allow young people to use mobile vans for conducting commercial activities in the streets; and
(4) encouraging more landlords to convert their industrial building units and let them at low rentals to young people starting their business for use as offices or places of business;
if it will consider introducing the aforesaid measures, of the details; if not, the reasons for that?
Reply:
President,
The Government attaches great importance to youth development work. We endeavour to foster a culture of multi-faceted excellence, in the hope that the community will appreciate diversified talents other than academic achievement. We also promote the concept of "multiple-pathways", so that youngsters and parents will adopt a broader perspective towards future study and career.
In this year's Policy Address, the Chief Executive proposes to set up a $300 million Youth Development Fund to support innovative youth development activities which are not covered by existing schemes, including subsidy in the form of matching funds for NGOs to assist young people in starting their own business. We are consulting the Commission on Youth on the Fund's operational details (e.g. eligibility criteria, approval procedures and allocation priority etc.). In addition, we have also been sounding out NGOs which run youth business start-up programmes and young entrepreneurs to collect their views and expectations on the Fund.
The views initially collected largely suggest that the Government should play the role not only in providing start-up funds, but also in working through experienced NGOs to provide various forms of support such as linking up the youths with mentors with relevant experience, provision of business information and guidance, assistance in establishing business networks etc. Hence, the essence of the Youth Development Fund is to leverage on the business and professional experience, inter-personal networks and support services possessed by these NGOs, with a view to helping young people pursue their entrepreneurship path.
In vetting funding applications submitted by NGOs, we will consider whether the NGOs can link up experienced mentors, provide comprehensive support services and matching grants, so as to assist young entrepreneurs to start business in a real business environment.
The Government has always been encouraging the business sector and the community to render assistance to young people in starting their business. In fact, many earnest members of the community have been taking forward different measures to echo our work on this front. Last year, the Hong Kong Arts Development Council and a property developer jointly availed some 10 000 square feet of work spaces in a converted industrial building in Wong Chuk Hang for artists including the youth to rent at a rental below market value. The Home Affairs Bureau allocated over $8 million as subsidy on the initiative's start-up cost and rental assistance for budding artists. As at end 2014, there were 27 artists who rented the art space.
We will continue to encourage and foster the business sector and the community to lease shops and work spaces at a concessionary or even nominal rental to young entrepreneurs that are funded by the Government, as a fulfilment of the corporate social responsibility. Nevertheless, we have no intention to adopt measures such as tax deductions and rates concession to encourage landlords to lease shops to young entrepreneurs at low rentals. As for other recommendations, we will give them a comprehensive consideration among other views collected.
We will continue to consult the Commission on Youth and other stakeholders on the operational details of the Fund, and continue to promote youth development work through fostering a culture of multi-faceted excellence and encourage young people to broaden their horizon and develop their potential.
Ends/Wednesday, February 25, 2015
Issued at HKT 12:55
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