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Following is a question by the Hon Cheung Kwok-che and a reply by the Secretary for Labour and Welfare, Mr Matthew Cheung Kin-chung, in the Legislative Council today (March 9):
Question:
It has been reported that the rents for private housing have soared in recent years, with the monthly per-square-foot rents for small flats even higher than those for luxurious residential units. Yet, the maximum levels of rent allowance (MRA) under the Comprehensive Social Security Assistance (CSSA) Scheme have not been adjusted since June 2003. The figures of the Census and Statistics Department revealed that the rents paid by almost 60% of the CSSA recipients living in private housing were higher than MRA, and that ratio has been rising in the last three years. In this connection, will the Government inform this Council:
(a) when MRA under CSSA Scheme was last reviewed by the authorities in accordance with the movement of the Consumer Price Index (A) rent index for private housing;
(b) given that the Government has indicated that it will adjust MRA in accordance with the established mechanism when necessary, of the meaning of "when necessary"; given that the ratio of CSSA recipients living in private housing and paying rents which are higher than MRA has been rising, whether the authorities will consider adjusting MRA upwards; if they will, of the details; if not, the reasons for that; and
(c) given the high levels of rents for private housing at present, whether the authorities will introduce interim measures for CSSA recipients living in private housing and paying rents higher than MRA, so as to alleviate their hardship; if not, of the reasons for that?
Reply :
President,
The Comprehensive Social Security Assistance (CSSA) Scheme provides cash assistance to families which cannot support themselves financially to help them meet basic needs.
Rent allowance is payable to CSSA households for meeting accommodation expenses. The amount of the allowance is the actual rent paid by the household, or the maximum rate determined with reference to the number of members in the household who are eligible for CSSA, whichever is the less. The maximum rates of the rent allowance (MRA) are adjusted annually in accordance with the movement of the Consumer Price Index (CPI) (A) rent index for private housing (the rent index). The rent index is compiled by the Census and Statistics Department on a monthly basis. It can reflect the movement of private housing rent borne by households in the relatively low expenditure group. The Legislative Council endorsed the rent index as the objective basis for updating the MRA in 1998.
My reply to the Hon Cheung Kwok-che's question is as follows:
(a) and (b) The MRA was last adjusted in June 2003 in accordance with the moving average of the rent index between April 2001 and March 2002. Although the rent index indicated that there was room for downward adjustment of the rates in the following years (the lowest being -17.3% in 2005), the Administration has frozen the MRA having regard to the state of the economy. The prevailing MRA is provided at Annex.
In line with the movements of the rent index, the room for downward adjustment of the MRA has been reduced gradually over the past few years. The twelve-month moving average of the rent index has returned to more or less the level with reference to which the 2003 adjustment was made. We will continue to closely monitor the situation, and will adjust the MRA in accordance with the established mechanism in the latter half of this year if the increasing trend of the moving average of the rent index persists.
(c) As at the end of January 2011, the MRA could fully cover the actual rent paid by the majority (86%) of CSSA households.
For CSSA households living in private housing and on the waiting list either for compassionate rehousing or for admission to a subvented home for the elderly, the Director of Social Welfare may exercise discretion to approve a rent allowance higher than the applicable MRA to cover the actual rent paid.
As regards short-term measures, the Financial Secretary proposed in the 2011-12 Budget to provide an extra allowance to CSSA recipients, equal to one month of the standard payment rates, so as to help ease the pressure of inflation and rising prices on their livelihood. CSSA recipients can flexibly deploy the above additional payment according to their own circumstances and needs.
Ends/Wednesday, March 9, 2011
Issued at HKT 16:24
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