Cash handout scheme will cost a ‘few per cent’ to run, Hong Kong finance chief Paul Chan says

Top officials present a united front on the proposed HK$4,000 payout a day after lawmakers across the political spectrum criticised the plan

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Financial Secretary Paul Chan (right) announces the handout on Friday. Photo: Sam Tsang

Published: 10:00pm, 25 Mar 2018Updated: 10:48pm, 25 Mar 2018

Administering the HK$4,000 cash handout for Hongkongers will cost a few per cent of the HK$11 billion (US$1.4 billion) scheme with little red tape, top officials said on Sunday, as they tried to ease public concerns about it being complicated and costly.

The officials also made it clear that new arrivals from the mainland would be among the 2.8 million people – one-third of residents – to benefit from the scheme, which was announced on Friday.

Chief Secretary Matthew Cheung Kin-chung and Financial Secretary Paul Chan Mo-po presented a united front a day after lawmakers across the political spectrum criticised the scheme – announced amid intense political and public pressure – as too complex, fearing costs would balloon.

Chief Secretary Matthew Cheung (second right) joins actor Andy Lau at an event. Photo: Felix Wong

“The administration cost of the proposed scheme will depend on the number of applicants, but preliminarily it is expected to be a few per cent of the sum intended to be dished out,” Chan wrote on his weekly blog on Sunday.

“We will try our best to minimise the relevant cost.”