will not

influenced by public officers. At the same

Administration is planning to abolish

time, the

Housing Branch.

2

the

I feel that all these amendments will sa

towards enhancing efficiency.

The third point that I would like to make is,

when OMELCO interviews certain organisations, some of them

say that clause 3 of the Bill actually replaces the

existing section 4(2) which is about the Authority's power

to make loans or accept securities for loans and

mortgages. They doubt whether the Housing Authority will

have to shoulder too many loans. But according to the

amended 4 (2)(ia), by taking over

by taking over the HOS and PSPS schemes,

the Housing Authority will have to shoulder the

responsibility when there are defaults. Secondly, it is

responsible for guaranteeing to the private contractors or

developers certain amounts. The total amount involved in

the HOS and PSPS schemes is only $5.7 billion, but judging

from past experience, we have only paid about $800,000. As regards the juzrintre to private developers,

^

Regarding the second one the total amount involved is

$9.2 billion, but all that we have paid previously is $142

million and that in fact is an agreement with the PSP S

developers. However, there is no definite formula and

that is the reason why we have to shoulder a substantial

amount. However, if we

now have a certain formula and if

anything is below market price, then it will be worked out

accordingly.

lc.

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