Budget Blow-out

John Tsang's first budget as Hong Kong's new Financial Secretary appears to have something for everyone, though it does nothing to solve the longer term structural problem of financing pensions and health care for an aging population.

Many young people arrived from the Mainland in the 1950s and 60s and worked hard to lay the foundations of the prosperity Hong Kong enjoys today. Times were hard in those days, and many earned only enough to provide for their immediate needs, with no opportunity to lay something aside for the future.

As Hong Kong became a major economic force, most of its people were lifted out of poverty. But lower income earners were hard hit by the migration of Hong Kong manufacturing to the Mainland in the 1980s. Those with limited education and few skills were stuck in low paying jobs, if they could find work at all. As this age group becomes too old to work, those without supportive relatives face a precarious old age, and will inceasingly rely on government support to survive. What was once a youthful population has changed owing to low birth rates and the world's highest life expectancy.

Meanwhile, one feature of the budget that will benefit me personally is the removal of duty on beer and wine, both of which I enjoy. But in its eagerness to promote Hong Kong as a centre for wine trading in Asia, I wonder if the government has considered the possible consequences of making booze more affordable to young people? Anyone who has seen how some urban areas in Britain are taken over by packs of drunken yobboes at weekends, leaving a trail of vomit and broken glass, will not want to see the binge-drinking youth culture spread to Hong Kong (nor the obesity to which it contributes).

Memo to ATV News: the government does not "give away" money to taxpayers. The correct term is "give back" - it is our money in the first place.