Press Releases

No decision to abolish or change the OAA system

In response to an article in a Chinese newspaper today (April 10) which claims that the Government is studying the abolition of the Old Age Allowance (OAA) system as an option to provide financial assistance to needy elders, a spokesman for the Health and Welfare Bureau said the Government is committed to providing financial assistance to needy elders, and has been studying ways to develop a long-term sustainable safety net that better targets resources at needy elders to meet their basic needs. 

He said, "Because of the continual ageing of our population, and our low and simple taxation system, how to achieve the objective of having a sustainable safety net is a complex issue which we need to examine further carefully.

"We have not reached any decision regarding ways to develop this safety net. Any report about proposals to abolish or change the OAA system at this stage is pure speculation. If and when there are plans to introduce major changes to the system, the public and the Legislative Council will be consulted," the spokesman added.

END/Wednesday, April 10, 2002
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