Following is the transcript of remarks by the Secretary for Labour and Welfare, Dr Law Chi-kwong, on poverty issues before attending the Award Ceremony of Most Improved Trainees of Youth Employment and Training Programme (YETP) of the Labour Department's YETP this morning (November 20):
 
Reporter: Given the rapidly ageing population in Hong Kong, how much worse do you think the poverty situation could get?
 
Secretary for Labour and Welfare: Given the increasing number of retirees in Hong Kong and the growth is something around 4 to 5 per cent currently that will grow up to 7 per cent, 8 per cent or even 10 per cent in a decade's time, we will expect, because of a lack of regular income for the elderly, would have a significant impact on the number of elderly living below the official poverty line. Therefore there is a need to think in terms of how to provide the retirees with a regular and reasonable income for them to live their retired lives. On one hand, already we have what we call a reverse mortgage for the elderly under the Mortgage Corporation (Hong Kong Mortgage Corporation Limited), and there is a need to improve it and promote it to the retirees. The other thing is by 2018, which is next year, we will be able to launch a public annuity programme (life annuity scheme), also by the Mortgage Corporation, so that we can transform the asset that they have into regular stream of income until they leave us. So I guess these are also important measures we are going to implement in future.
 
Reporter: Many people believe that people who live below of the poverty line are already receiving government subsidies or government allowances. Does that show that the Government actually can do nothing as a lot of people are still living under the poverty line?
 
Secretary for Labour and Welfare: I would say definitely we have a lot to do. However, behind those statistics, we also have to understand that one phenomenon, which is the poverty line is drawn according to 50 per cent of the median household income and the 50 per cent of the median household income, will increase in line with the general income increase in Hong Kong. In the past few years, the median income of household or individual surpassed our inflation. On the other hand, our welfare programme is annually adjusted according to inflation. Therefore, there will be a growing gap between the poverty line and our welfare programme which is purely adjusted on inflation. These are all statistical, but on the other hand as I said, we still have a lot to do to improve our existing programmes. Actually as mentioned in the Policy Address in October, we will be improving our Low-income Working Family Allowance which will be increased very substantially and we hope to protect more low-income working families. On the other hand, next year, by 2018 mid-year, we will be able to provide a slightly better version of Old Age Living Allowance to increase it from the present about $2,500 ($2,565) to $3,400 ($3,435). Although $3,400 is not sufficient to lift them out of the poverty line but to reduce the poverty gap would be quite substantial. That is to improve their livelihood.
 
(Please also refer to the Chinese portion of the transcript.)

Ends/Monday, November 20, 2017
Issued at HKT 14:36

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