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no upward adjustment until 1974, and even then there had only

been a modest increase aimed at reducing the deficit. Rents

for comparable acccommodation in the private sector were

between 6 and 8 times those in public housing. The average proportion of income paid in rents in public housing varied between 3 and 20 percent. 45 percent of the population were presently in public housing and enjoying these subsidised rents. HE added that the long term plan was to provide low rent housing for all who needed it, which would result in about 67 percent of the population being in public housing by the early 80s.

8. Mr Parry had been appalled by the condition of some of the

Mark I estates and warmly welcomed the Government's plans to

redevelop them but felt that the rents of the new accommodation

should not be out of the reach of tenants. D of H explained the policy of trying to allocate accommodation in older low-rent estates to those who could not afford the higher rents. This problem only arose in 10-15 percent of cases and careful allocation in this way might solve it. H.E. said there would be difficulty in the new towns in the New Territories where

people were very poor. It would not be acceptable to drop standards and a solution to the rent problem would have to be

found.

9.

Mr Parry enquired whether the housing programme would be ambitious enough and progressive enough to meet the needs generated by clearances, demolitions etc. H.E. replied that production would build up to housing for 107,000 next year, 170,000 in 78/79 and 224,000 in 79/80. Thereafter this level of provision would be maintained until the problem was solved. Mr Parry fully accepted the physical limitations to any

improvement on this programme.

10. In response to a question from Sir Paul Bryan about the possibility of improving the design of housing in the future, D of said that the standards were constantly being revised

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