Hong Kong Aff


Work Incentive Transport Subsidy



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Work Incentive Transport Subsidy

TL A2 WITS CP

Perm – do the plan and the counterplan with a raised income limit. A logical policymaker would modify the CP not to trade off with the plan. That shields the link and the aff is a net benefit

No solvency


Chack-kie 12 [(Wong, Hong Kong Institute of Asia-Pacific Studies) “Feasibility Study of Low-Income Working Family Subsidy” Oxfam hong kong May 2012] AT

The apparent objective of the WITS is inconsistent with its design. Though the WITS specifically focuses on work-related transportation expenses, its eligibility criteria and subsidy levels do not consider the transportation need of individuals, or the distance they must commute. Instead, the design is like a low-income family subsidy because eligibility is based on the economic situation of a household. Yet the objective of the WITS is not broad enough to provide sufficient subsidies to meet the living expenses of low-income families.

Doesn’t gives incentives to work


Chack-kie 12 [(Wong, Hong Kong Institute of Asia-Pacific Studies) “Feasibility Study of Low-Income Working Family Subsidy” Oxfam hong kong May 2012] AT

Incentives to Work The WITS does not provide strong incentives for low-income earners to work, partly because the current eligibility criteria are based on a family’s economic condition rather than an individual’s. If a worker fails the means test he or she cannot obtain the allowance, so it does not serve as an incentive to continue employment or to work longer hours. Furthermore, the system is only two-tiered with regard to working hours. Under the WITS, employees that work 36 hours per month are entitled to HK$300 per month. Those who work 72 hours or more per month are entitled to HK$600 per month. This system does not provide enough incentive to encourage employees to increase their working hours.


Empirically no one applies to it and too few are eligible


Chack-kie 12 [(Wong, Hong Kong Institute of Asia-Pacific Studies) “Feasibility Study of Low-Income Working Family Subsidy” Oxfam hong kong May 2012] AT

In fact, even before the implementation of the minimum wage, the income of some low-wage workers such as cleaners and security guards exceeded the original WITS income limit for a one-person household. This suggests that the income limit was set too low from the start. According to the Labour and Welfare Bureau, as of 30 December 2011 (several months after the implementation of the minimum wage), only 21,000 applications for the WITS had been filed, and only 10,000 applications (with approximately 10,947 applicants) had been granted the subsidy3 . The number of applications was far lower than the 218,0004 anticipated by the Government. In fact, only about 5% of eligible workers are receiving this support.


It’s too difficult to apply to


Chack-kie 12 [(Wong, Hong Kong Institute of Asia-Pacific Studies) “Feasibility Study of Low-Income Working Family Subsidy” Oxfam hong kong May 2012] AT

Income and assets tests make the application procedure for WITS complicated and thus discourage many eligible workers from applying. In principle, the means tests are employed to identify needy families and screen out the less needy. However, in practice, the tests require not only the applicant but also his/her family members to disclose a wide variety of assets and income. Also, applicants must submit proof of salary and monthly working hours. Thus many eligible applicants, particularly those who are self-employed or work for several employers, find it difficult to collect enough information for the WITS application.

Perception advantages are a disad – CP is perceived as stringent and pro-business


Chack-kie 12 [(Wong, Hong Kong Institute of Asia-Pacific Studies) “Feasibility Study of Low-Income Working Family Subsidy” Oxfam hong kong May 2012] AT

Furthermore, the assets limit is perceived as stringent. According to a survey conducted by Caritas in 20105 , 73% of interviewees indicated that the individual asset limit should be relaxed, and about 60% suggested that the one-person asset limit should be increased from HK$44,000 to HK$150,000 or above. Should the asset limit not be further relaxed, the test will hinder the Government from rewarding many hardworking low-wage earners.


Extra Adv

WITS screws over households with children


Chack-kie 12 [(Wong, Hong Kong Institute of Asia-Pacific Studies) “Feasibility Study of Low-Income Working Family Subsidy” Oxfam hong kong May 2012] AT

The WITS is internally inconsistent when the Government considers it justifiable to consider the economic situation of a household, but fails to consider the expenses incurred in raising children in designing the WITS income limit. Currently, the design overlooks the fact that the economic burden of a family with children can be considerably higher than that of a family without children. Using the regression analysis model and the 2009/2010 Household Expenditure Survey of the Census and Statistics Department, we can estimate the increased household expenditure for an additional child and an adult. Results show that each additional child aged under 15 increases average household expenditure by HK$5,328 a month, and each additional adult by HK$4,165 – a monthly difference of HK$1,163 (See Table 2.3). Whatever the household size, a household with children has a higher per-capita expenditure than a household without; and the more children a household has, the per-capita expenditure is higher still. Families with children also tend to have less ability and less flexibility to deploy resources in times of need.




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