sufficient to meet all its outgoings, other than those chargeable to capital expenditure accounts. So far it has not acquired any income, and will not do so until the first of its estates, at North Point, is com- pleted and occupied towards the end of 1957.
RATES
The rateable value of the flats will be assessed in the ordinary way by the Commissioner for Rating & Valuation, related to the economic value of the premises, and not the rent actually to be charged by the Authority. The inevitable result will be that rates will form a dispro- portionately high percentage of the 'inclusive' rental, but it is Govern- ment's view that rates should fall equally on all, and it would be morally wrong for the Authority's tenants, who will be getting accom- modation at commercially uneconomic rents, to receive any additional benefit in the shape of reduced rates, since rates are a payment for municipal and other services, to be met by all persons in the com- munity in proportion to the annual value of the property they occupy.
ACCOUNTS
The Authority's accounts are kept under the general direction of the Accountant General, and audited annually by the Authority's own auditors, Messrs. Peat, Marwick, Mitchell & Co. This firm has also kindly consented to act as honorary financial advisers to the Authority. Copies of the accounts for the years ended 31st March, 1956, and 31st March, 1957, are attached as Appendices IV and V.
TENANT SELECTION
Concurrently with planning and building, work has proceeded on the selection of tenants for the Authority's flats. This is done on the basis of a points scheme, in which the most important factor is the applicant's housing need. In order to assess this need, points are awarded for such conditions as overcrowding, lack of a separate home, and the incon- venience a family suffers through members having to live apart, because of the lack of accommodation. In the final selection regard will be had to war service, length of residence in Hong Kong, and current service in the local auxiliary defence forces. Additional points are also given for certain tuberculous conditions in the family.
At present applications are only considered from persons over 21 years of age, who have lived in Hong Kong continuously since 1st
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