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I, as a

would be drastically brought up to the 15% level. member of the Authority, can assure them that this fear is unfounded, and it is not the Authority's intention to bring all rents up to this absolute limit.

On the other hand there is a less vocal group who thinks that the proposed 15% rent/income ratio is too low and point out that rent levels of public housing in some other countries are higher. I am glad that the Rent Policy Committee, in recommending this limit, has not taken the extremes but has sensibly based its consideration on the

And there is ample ability of the prospective tenants to pay. evidence in their report to support that 15% is well within the affordability of the tenants.

Secondly, let me point out that public housing is an

Although we have intensively resource-consumptive operation.

now housed nearly half of the population, we must not forget that there are still many eligible families waiting patiently in the private sector for their turn to get into public housing. When one considers the excellent environment and amenities provided in some of the newer public housing estates, one must feel uneasy for the unfair treatment towards those who have no other alternatives but to live in private sector housing. These private sector tenants very often have to pay a rent which is about three to four times more than those who have the better fortune of getting into a public housing flat and it is not uncommon for a new tenant in the private sector

I, therefore, support to pay up to 40% of his income as rent.

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the proposed guiding ratio of 15%, not forgetting that statistics has clearly indicated that after moving into public housing, tenants continue to enjoy a steady rise in their living standard.

I now turn to the report on housing subsidy.

Members of this Council had discussed this issue with reference made to whether the provision of public housing should be a

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