Why Was MPF the Wrong Vehicle for a Handout?

What was the lesson of the 2011 budget saga?

A government insider admitted in March 2011 to two political “original sins”: using the “hated” MPF as the policy vehicle, and scrapping tax rebates without an acceptable explanation. Channelling HK$24 billion into MPF accounts ignored that “MPF is already an original sin in Hongkongers’ hearts” — more money in only stoked anger. Dropping the customary tax rebate with no convincing reason compounded the fiasco.

What is “political-rationality deficiency”?

An internal review concluded officials were trained in “policy rationality” — solid data and reasons — but neglected “political rationality”: does it command LegCo votes, will the public accept it? The landfill veto, Asian Games bid failure, transport subsidy revision and near-defeat of the budget all showed the symptoms.

How had the political ecology changed?

The insider said Hong Kong had undergone a paradigm shift into a direct-democracy era: elected lawmakers could no longer represent voters on autopilot for four years, and policymaking had to weigh votes and public satisfaction in tandem. Rather than wait on policy, workers should choose better funds themselves at MPF fund comparison.