The chief executive proposed in his policy address to raise the Old Age Allowance to HK$1,000, but also ensure that the money is going to the truly needy.

"To solve the aging problem, we need a comprehensive strategy on the provision of financial support for the elderly," Tsang said, adding that the limited financial resources should be spent on those in genuine need.

The allowance may also eventually include a "means test", which would serve to exclude those who can support themselves.

A government source said the means test is required to lessen the government's financial burden.

At present, people between 65 and 69 who are single can receive an monthly allowance of HK$625 if their assets are less than HK$169,000. Married couples are eligible if their assets do not exceed HK$254,000.

Recipients over 70 can receive HK$705 a month.

By 2015, HK$4.4 billion is expected to be spent on the allowance if the current level is maintained. That amount would increase to HK$6.4 billion if every senior citizen is given a HK$1,000 allowance each month.

"However, the SAR government will never reduce resources allocated on taking care of the elderly," Tsang said at a press conference after the policy address. He also pledged that current allowance recipients would not be affected, and those who are financially self-sufficient would receive other forms of concessions.

The government is also considering relaxing the permissible limit of absence from Hong Kong for the allowance recipients. Yet details such as the application criteria and whether the current recipients can also get the raised level have not been discussed.

Tsang said the allowance review will be completed by the end of this year.

Qualifying for payment

The government's consideration of a means test is receiving plenty of criticism.

Democratic Alliance for the Betterment and Progress of Hong Kong Chairman Tam Yiu-chung objected to the mechanism, saying it is disrespectful to senior citizens.

Some also said the original purpose of the allowance will vanish if a test is imposed.

Ken Chan, the service development chief officer of Hong Kong Council of Social Services, said the allowance is given out of respect to the elderly, and to help them.

Sammy Chiu, a professor of social work at Hong Kong Baptist University, also criticized the test.

"The mechanism will create a deterrent. As a result, a group of people may get nothing, as they are neither eligible to receive Comprehensive Social Security Assistance nor the (age allowance), as they want to avoid a means test," Chiu said.

He also said he thought the extension of the permissible limit of absence from Hong Kong wouldn't be helpful, as only a minority would need more than the currently permitted 240 days.

"This would be a group that resides in elderly homes on the mainland," he added.

Yet Chan welcomed the proposal, saying it still benefits some senior citizens.

(HK Edition 10/16/2008 page1)