-32in 2001-02) would be insufficient. It was also estimated that the requirement for 2003-04 would be well in excess of $18 billion.81 84. This was seen as a threat to the system’s sustainability: “Firstly, against the general economic situation and high unemployment, the number of families and individuals requiring support by Government is bound to increase. To sustain this safety net, we have to ensure our existing resources go further to meet the increasing demand. Secondly, prices for goods and services have come down considerably even as measured specifically by the SSAIP.82 ... Thirdly, the HKSAR Government is facing some unprecedented budget deficits and of the Government is committed to restoring fiscal balance by 2006-07 as announced by the Financial Secretary...”83 85. The Government therefore decided to reduce the CSSA and SSA standard rates of payment: “For fiscal reasons and to ensure that we could continue to meet increase in demand, it is therefore proposed that the CSSA and SSA rates should be adjusted downward; that the over-adjustments in standard rates for able-bodied recipients under the CSSA Scheme, and those of the non-means tested [Disability Allowance] under the SSA Scheme should be recouped in one go through an 11.1% reduction from June 2003 .... and for non-able-bodied CSSA recipients, namely the elderly, the disabled and those medically certified to be in ill health, the 11.1% reduction the standard rates will be effected in two phases, first by 6% from October 2003, followed by the second phase adjustment from October 2004.”84 86. Again, in my view, the rational connection between the sustainability objective and those across-the-board reductions of the standard rates is plain to see. J.3 The seven-year residence requirement 87. The Government’s case in support of the seven-year requirement based on rising cost is unfocussed and sparse. Mr Cheung points to rising public expenditure on social welfare generally (reaching $32.8 billion in 200681 Ibid, §5. 82 Social Security Assistance Index of Prices. 83 Legco Brief HWF CR 2/4821/58 (03) Pt 68, §4, 25 February 2003. 84 Ibid, §6.

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