- 2 -
counterparts in the private sector. They pay a very small
proportion of their income, usually not more than 10% for
their flats and I believe it is the generally accepted view
of the community as a whole that they could be reasonably expected to contribute a fairer share of income towards their
own housing.
Last year, when the Housing Authority reviewed
its allocation policies, the question of the housing subsidy
to public housing tenants was one of the subjects on which
there was wide-ranging consultation with the public.
Unfortunately, but not surprisingly, the consultations did
not produce a conclusive view on this issue. The Housing
Authority has therefore set up a special committee under
the chairmanship of Mr. F.K. Hu to study this question in
depth and to make recommendations. In its short life that
committee has already considered 19 discussion papers, so
I think can assure Members that the problems are being fully
explored. I am most grateful to Mr. Hu for taking on this
unenviable chairmanship, his committee will report within
the next month or so and a Green Paper will then be issued
for public consultation before firm proposals are put to
the Executive Council.
Mr. Hu has already given a glimpse of the
committee's thinking on measures which might be taken to
reduce the subsidy to those tenants in public housing who
are no longer in need of it. Without wishing to pre-empt
his report further it may be helpful if I offer some thoughts
on our current philosophy. We believe in the carrot and
the stick approach but it must be said that up to now we
have offered much more carrot than stick. The best solution
would be for rental tenants who can well afford to upgrade
their housing, to move to home ownership flats so that the
rental flats they give up can be offered to those waiting
patiently in the private sector. We have made some changes
in policy to encourage our tenants to make the move, and
so far over 21,000 rental flats have been vacated as a
/result