CONFIDENTIAL #
Mr. FONG Yun-wah
Mr. Cecil Chao
Mr. Anthony Chan
Vice-President, R.E.D.A. (Managing Director, Hip Shing Hong (Holdings) Co. Ltd.
Director, R.E.D.A.
(Managing Director, Wah Kwong Properties Ltd.)
Secretary, R.E.D.A
Preliminaries
Mr. Fry introduced his colleagues in the Working Group to the representatives of the R.E.D.A. and thanked them for agreeing to attend the meeting at such short notice.
2.
Mr. Fry said that, since the meeting held in March between S. For H. and the R.E.D.A., a lot of water had flowed under the bridge. The Working Party on Home Ownership had been formed and its terms of reference required it to investigate the scope for entering into joint ventures with the private sector. For this purpose the Working Party had
The appointed a working group to make recommendations. Working Group had reached certain tentative conclusions and the purpose of the meeting was to have an exchange of views with the R.E.D.A. Mr. Fry stressed the informality of the occasion and the need for maintaining secrecy.
Purpose of Joint Ventures
3.
Mr. Fry proceeded to explain that the booster of 30,000 flats for the housing programme was of no concern to the private sector the Government had decided to augment the housing programme regardless of whether the flats could be sold. On the other hand the Government had taken a parallel decision to enable households in a certain income range to buy their own flats. Accordingly the Working Party was trying to devise a mortgage scheme that would assist these
As there was reason to households to buy their own flats.
believe that the scheme might attract more than 30,000 eligible households it would be desirable to ensure that the stock of suitable flats (suitable in terms of what these households could afford) was sufficient to meet likely effective demand. One way of reaching this objective was In order to get the private sector to build extra flats.
to achieve this, however, there would have to be a common identity of interests between the Government and the private sector developer., as well as an adequate procedural framework within which common interests would result in housing projects being built.
Criteria & Procedure
4.
Mr. Fry then outlined the following general criteria for possible joint ventures -
(a)
the scheme must serve the purpose of promoting home ownership in the target income group;
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CONFIDENTIAL
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