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contained home at a rent or price it can afford. At present over 40% of the population live in public housing, and the Housing Authority constructs about 37,000 flats a year. (Another 27 - 30,000 units a year are being constructed by the private sector). At the same time, there is a steady improvement in spatial standards and amenities, such as shopping and recreational centres. However, demand continues to exceed supply, and there are some 880,000 people living in squatter areas.

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SOCIAL WELFARE

3.6 Hong Kong does not have a comprehensive social security system, but there is a non-contributory means-tested Public Assistance Scheme designed to bring the income of needy households up to a specific level at which essential needs can be met. In addition to the basic scale, supplementary assistance may be given to cover rent, school expenses, special diets etc. An old-age supplement is paid to people over 60 who do not receive the old-age allowance, and there is also an annual long-term supplement to meet extra costs for replacement of household wares and durable goods. A non-contributory, non-means-tested Special Needs Allowance Scheme includes an old age allowance (for people 70 years of age or above) and a disability allowance. Both Public Assistance and Special Needs Assistance scales of payment are revised annually.

3.7 A wide range of welfare services is provided by the Social Welfare Department and subvented agencies for target groups (eg the disabled, the elderly, offenders). The Government is taking steps to reduce the current shortage of social workers. A White Paper on Social Welfare Services published in April 1979 envisaged an estimated HK$2,000 million increase in capital and recurrent expenditure up to 1986-87. HK$1,267 million allocated for the current financial year represents an increase of 17% over the approved estimate for 1981/82.

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