Hot Issue: The Budget: Expenditure on Public Healthcare 1

Introduction A report released by the Working Group on Long-term Fiscal Planning revealed that the issues of ageing population and declining labour force would lead to a slowdown in economic growth and the public revenue of Hong Kong. At present, the three policy areas of education, health and social welfare constitute almost 60 percent of HK’s recurrent expenditure. For public healthcare, the Government has commenced the construction, expansion and redevelopment of hospitals and implemented a number of major complementary projects to prepare for the community’s long long-term demand for healthcare services due to the ageing population. The Budget has also proposed a long-term strategy on public healthcare. It is suggested that individuals’ awareness of public hygiene should be enhanced in order to reduce the demand on public healthcare services. In view that there is a rising trend of the number of young smokers around the world, studies by organizations including the World Health Organization (WHO) pointed out that increasing tobacco duty is an effective means of controlling smoking in order to lower the health risks of the public. Imposing tobacco duty could also help reduce direct medical expenses caused by smoking and second-hand smoking. In view of this, the Budget has also proposed to increase the tobacco duty rate. 2

Questions for Enquiries 3. The Government intends to cultivate the public’s awareness of public hygiene so as to reduce the demand on public medical services. To achieve this long-term goal, what practical ways would you suggest? 3 1. Do you think that the proportion of recurrent government expenditure on education, health and social welfare is appropriate? Why? 2. Some people think that the rate of increase in tobacco duty as proposed in the Budget is too low to have any strong deterrent effect on the smokers. Do you agree? Why?

Background Question for Enquiry 1  HKSAR. (updated on 26 February, 2014). The Budget. Retrieved from  Food and Health Bureau, HKSAR. (Updated on 7 April, 2014). Health Expenditure. Retrieved from  Press Releases, HKSAR. (26 February, 2014). Budget Speech by the Financial Secretary. Retrieved from  Information Services Department, HKSAR. (26 February, 2014). Spending to be reined in, revenues broadened. Retrieved from 26_ shtml?pickList=topstories 26_ shtml?pickList=topstories 4 Question for Enquiry 2 Question for Enquiry 3 ＞ More info

＞ More info Background  South China Morning Post. (14 December, 2012). Hong Kong’s out- of-pocket medical expenses set to double by Retrieved from pocket-medical-expenses-set-double pocket-medical-expenses-set-double-2020  Information Services Department, HKSAR. (9 April, 2013). HK healthcare is a dual-track system. Retrieved from shtml shtml  People’s Daily Online. (13 October, 2010). Hong Kong to increase public healthcare expenses. Retrieved from tml tml 5 Background Question for Enquiry 1 Question for Enquiry 2 Question for Enquiry 3

Background  The Wall Street Journal. (n.d.). Healthcare options in Hong Kong. Retrieved from kong/health-care/ kong/health-care/  China Daily Hong Kong Edition. (16 January, 2014). We must plan ahead to preserve Hong Kong’s financial reserves. Retrieved from 01/16/content_ htm 01/16/content_ htm  The Huffington Post. (25 September, 2009). Does Hong Kong have the world’s best healthcare system? Retrieved from have-the-w_b_ html have-the-w_b_ html 6 Background ＞ More info Question for Enquiry 1 Question for Enquiry 2 Question for Enquiry 3

1. Do you think that the proportion of recurrent government expenditure on education, health and social welfare is appropriate? Why?  South China Morning Post. (6 May, 2014). Performance of health care facilities needs to be optimised to meet demand. Retrieved from china/article/ /performance-health-care-facilities-needs-be- optimised-meet china/article/ /performance-health-care-facilities-needs-be- optimised-meet  School of Public Health, The University of Hong Kong. (n.d.). Hong Kong’s Health Spending – 1989 to Retrieved from f f  Global Post. (1 October, 2013). 8 places that do health care better than the US. Retrieved from health-care-systems-obamacare health-care-systems-obamacare 7 Background ＞ More info Question for Enquiry 1 Question for Enquiry 2 Question for Enquiry 3

 China Daily Asia. (27 February, 2014). John Tsang warms of looming budget deficit. Retrieved from 02/27/content_ html 02/27/content_ html  HSBC. (28 February, 2014). A mature budget for Hong Kong’s mature economy. Retrieved from insights/insights/2014/a-mature-budget-for-hong-kongs-mature- economy.htmlhttp:// insights/insights/2014/a-mature-budget-for-hong-kongs-mature- economy.html  South China Morning Post. (19 May, 2014). Filibustering lawmakers say fiscal crisis is government bogeyman. Retrieved from lawmakers-say-fiscal-crisis-government-bogeyman lawmakers-say-fiscal-crisis-government-bogeyman 8 1. Do you think that the proportion of recurrent government expenditure on education, health and social welfare is appropriate? Why? Background ＞ More info Question for Enquiry 1 Question for Enquiry 2 Question for Enquiry 3

 Information Services Department, HKSAR. (September, 2013). Hong Kong: The Facts – Social Welfare. Retrieved from  Information Services Department, HKSAR. (April, 2014). Hong Kong: The Facts – Education. Retrieved from  The Establishment Post. (22 May, 2014). Asia Education System in Tip-Top Form. Retrieved from system-tip-top-form/ system-tip-top-form/  Economic Times. (13 May, 2014). Singapore and Korea take the lead in new- look, QS University Rankings: Asia. Retrieved from Do you think that the proportion of recurrent government expenditure on education, health and social welfare is appropriate? Why? Background ＞ More info Question for Enquiry 1 Question for Enquiry 2 Question for Enquiry 3

2. Some people think that the rate of increase in tobacco duty as proposed in the Budget is too low to have any strong deterrent effect on the smokers. Do you agree? Why?  South China Morning Post. (22 February, 2014). Budget increase in Hong Kong’s tobacco tax likely to be small. Retrieved from kong/article/ /budget-increase-hong- kongs-tobacco-tax-likely-be-small kong/article/ /budget-increase-hong- kongs-tobacco-tax-likely-be-small  The Standard. (27 February, 2014). Cigarette tax increase not just revenue grab. Retrieved from asp?we_cat=11&art_id=142952&sid= &con_type=1&d_str= &fc=4 asp?we_cat=11&art_id=142952&sid= &con_type=1&d_str= &fc=4 10 Background ＞ More info Question for Enquiry 1 Question for Enquiry 2 Question for Enquiry 3

 Information Services Department, HKSAR. (26 February, 2014). Tobacco duty to rise. Retrieved from 4/02/ _ shtml 4/02/ _ shtml  China Daily Asia. (21 February, 2014). Focus HK: When the smoke clears. Retrieved from 02/21/content_ html 02/21/content_ html  Hong Kong Council on Smoking and Health. (26 March, 2014). Big tax hike can reduce tobacco use by one-third and prevent 200 million premature deaths. Retrieved from Some people think that the rate of increase in tobacco duty as proposed in the Budget is too low to have any strong deterrent effect on the smokers. Do you agree? Why? Background ＞ More info Question for Enquiry 1 Question for Enquiry 2 Question for Enquiry 3

 Hong Kong Council on Smoking and Health. (26 February, 2014). COSH response to the tobacco control policies proposed by The Budget. Retrieved from news news  Hong Kong Council on Smoking and Health. (20 February, 2014). Open Letter to Financial Secretary, HKSAR Government: Raising Tobacco Tax to Encourage Smoking Cessation and Prevent Youth Smoking. Retrieved from ews/2014/Open_Letter_to_FS_Raising_Tobacco_Tax _Eng.pdf ews/2014/Open_Letter_to_FS_Raising_Tobacco_Tax _Eng.pdf Some people think that the rate of increase in tobacco duty as proposed in the Budget is too low to have any strong deterrent effect on the smokers. Do you agree? Why? Background ＞ More info Question for Enquiry 1 Question for Enquiry 2 Question for Enquiry 3

 South China Morning Post. (5 March, 2013). Hong Kong may be forgetting lessons of Sars. Retrieved from kong/article/ /hong-kong-may-be-forgetting- lessons-sarshttp:// kong/article/ /hong-kong-may-be-forgetting- lessons-sars  World Health Organization. (5 May, 2014). SAVE LIVES: Clean Your Hands – WHO’s global annual campaign. Retrieved from  CNN. (3 May, 2014). Can SARS lessons prevent a MERS virus outbreak? Retrieved from virus-sars-lessons/ virus-sars-lessons/ 3. The Government intends to cultivate the public’s awareness of public hygiene so as to reduce the demand on public medical services. To achieve this long-term goal, what practical ways would you suggest? 13 Background ＞ More info Question for Enquiry 1 Question for Enquiry 2 Question for Enquiry 3

 The Standard. (19 July, 2013). New alert as mosquitoes bite again in Tin Shui Wai. Retrieved from 03&con_type=1 03&con_type=1  Centre for Health Protection, Department of Health. (May 2014). Hand Hygiene Awareness Day 2014 – The importance of hand hygiene combating antimicrobial resistance (AMR). Retrieved from  Public Opinion Programme, The University of Hong Kong. (December, 2012). Personal Hygiene awareness 10 years after SARS survey. Retrieved from ml ml The Government intends to cultivate the public’s awareness of public hygiene so as to reduce the demand on public medical services. To achieve this long-term goal, what practical ways would you suggest? Background ＞ More info Question for Enquiry 1 Question for Enquiry 2 Question for Enquiry 3

 Press Releases, HKSAR. (30 May, 2012). LCQ 20:Demand for public medical services. Retrieved from htm htm  Hospital Authority. (2009). Helping People Stay Healthy. Retrieved from  Hong Kong Business. (4 June, 2013). Optimizing healthcare assets and developments in Hong Kong. Retrieved from ucing-operational-costs-assets-key-hong-kong-healthcares- success ucing-operational-costs-assets-key-hong-kong-healthcares- success The Government intends to cultivate the public’s awareness of public hygiene so as to reduce the demand on public medical services. To achieve this long-term goal, what practical ways would you suggest? Background Question for Enquiry 1 Question for Enquiry 2 Question for Enquiry 3