Why Was the Community Care Fund’s HK$6,000 Handout Slammed?

Why Was the Community Care Fund’s HK$6,000 Handout Slammed?

In July 2011, LegCo debated injecting HK$1.5 billion into the Community Care Fund for HK$6,000 payouts to eligible new arrivals — attacked for red tape and unreadable forms. Chair Law Chi-kwong said 180 staff would be hired to spot false claims; “checking before paying” was blasted as distrust and discrimination.

What was the admin cost?

HK$25 million of HK$1.5 billion — under 2%, yet HK$109 per case, turning HK$6,000 into HK$5,891: “a discount that spoils the occasion”. Critics said the government couldn’t even absorb the HK$109.

What was wrong with the forms?

The red and green forms had tiny writing spaces, microscopic fonts and convoluted instructions. Accused of making things hard for new immigrants — bureaucracy over people.

How did it differ from the MPF injection?

The MPF injection went straight into accounts; this needed applications. Handouts should be simple. Workers are better off tending their own MPF — compare funds.