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C.S. 166
CONFIDENTIAL # &
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3
A
機密
XCC(77)11
(b) Resettlement and GLCH buildings
(i)
(ii)
Marks I-III Resettlement blocks and old factory estates will be regarded as being fully depreciated (i.e. nil value. These buildings require replace- ment and it would not be possible to reap any return on liquidation. The value of the land upon which they sit is dealt with in (a) above);
the remainder will be valued at the depreciated value as at 1st April 1973.
(c) Buildings constructed under the Public Works Programme
all such buildings will be valued at full cost at the date of handing over and will be regarded as a Government con- tribution.
(d) Development Loan Fund borrowings prior to 1st April 1976 -
the full amount of principal borrowed ($300 million appro- ximately) although strictly speaking a Development Loan Fund contribution will be regarded as a contribution from Government for the purpose of this exercise.
(e) Borrowings from the Development Loan Fund post
1st April 1976
(i)
(ii)
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principal repayments to be repaid over a 40 year period (with a grace period for construction). payments will commence on 1st April of the second financial year following the year of borrowing, thus providing a grace period of between one and two years pending letting of the flats. As this is to be repaid by the Housing Authority the principal of the loans does not constitute a contribution by Government; and
A
interest the loans from Development Loan Fund will be without interest, in order to reduce the cash flow burden on the Housing Authority. However, within the Housing Authority accounts, a notional interest of 5% on reducing balance will be levied in order to demonstrate more accurately Govern- ment's contribution.
(f) Management cost of Group B estates
the grants now
paid by the Government towards the management cost of Group B estates should cease after the current financial year, but a grant should continue to be paid in respect of cottage areas. As explained in the previous memorandum, paragraph 16, the Authority will be better able to meet the Group B management costs itself under the proposed arrangements which result in improved cash flow.
CONFIDENTIAL
機密