A woman wearing a face mask and face shield shops for instant cup noodles at a supermarket in Tseung Kwan O, Hong Kong, July 27, 2020. (CALVIN NG / CHINA DAILY)

HONG KONG - The Hong Kong government said it won't allow discount offers to be included in so-called give-back initiatives of the city’s two supermarket chains which have received tens of millions in wage subsidies.

Citing reasons of unquantifiability and lack of transparency, the Hong Kong government turned down the proposal of Wellcome and ParknShop to offer direct price reductions to all customers but stressed that the city’s underprivileged groups should be given priority, being beneficiaries of no less than half of the alleviatory measures planned by the two chains

Citing reasons of unquantifiability and lack of transparency, the government turned down the proposal of Wellcome and ParknShop to offer direct price reductions to all customers but stressed that the city’s underprivileged groups should be given priority, being beneficiaries of no less than half of the alleviatory measures planned by the two chains.

In 2018, HK's pre-intervention poverty figures rose slightly year-on-year, with a a poverty rate of 20.4 percent and a poor population of more than 1.4 million.

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As of Aug 2020, 320,852 people were covered by Comprehensive Social Security Assistance, the city’s low-income subsidy program. 

“It is not only impossible for the government and the general public to constantly monitor price changes; it is also difficult for us to differentiate the discount offers from the two supermarket chains’ daily promotions,” a government spokesman said in a statement on Sunday.

Wellcome and ParknShop received wage subsidies of HK$184.5 million and HK$161.96 million, respectively, according to the government. 

They pledged to return about HK$100 million and HK$81 million, respectively, to the community through "trusted charity partners".

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The government made it clear that the two chains would have to execute the give-back proposals before the end of Dec 2020 and sought a list of partner NGOs, the number of beneficiaries and the amount involved in public interest. 

Wellcome announced a plan last week to distribute 2 million cash and meal vouchers worth HK$80 million to the needy, HK$5 million in donations to help vulnerable groups as well as cash vouchers to its own staff. It also pledged to freeze prices of more than 300 everyday essentials for at least 6 months - a proposal the government shot down Sunday, saying it was "impossible for the Government and the general public to constantly monitor price changes".

ParknShop had also announced that it would distribute food vouchers worth HK$40 million to help roughly 200,000 disadvantaged people. It also proposed to start a lottery in Oct involving coupons worth HK$32 million.

District councilor Frankie Ngan Man-yu called on the government and the chains to consider a 30 percent price reduction for all customers.

In a press statement, he pointed out the pandemic affected people from all socio-economic segments, especially the unemployed and the underemployed. He said if vouchers only went to those classified as needy, others equally in need could lose out.