HOUSING
In the 1990-91 financial year, recurrent expenditure on the authority's domestic rental properties, covering mostly management and maintenance costs, totalled $4,922.2 million, while income from domestic rents was $4,229.8 million, resulting in a deficit of $692.4 million. This deficit was mainly because the low rents in old estates were insufficient to cover management expenses and the high cost of maintenance and improvements.
The authority was able to partly offset this deficit from income derived from its non-domestic properties which, over the same period, generated a surplus of $436.4 million after charging amortisation and paying interest on permanent government capital and 50 per cent dividends to government.
The authority spent $7,642.4 million on its capital programmes, of which $5,638.7 million (73.8 per cent) was financed by the authority, while the balance of $2,003.7 million (26.2 per cent) came from the government through supplementary injection of capital.
Construction
During the year, the authority produced 40 400 flats - 23 600 for rent and 16 800 for sale, in addition to commercial premises.
With the decrease in workload in the private sector and the easing of the labour shortage, tender prices were very competitive.
The first period of the Long Term Housing Strategy was completed in March and both the private and public sectors met the production targets.
Progress in building works has steadily reduced the waiting list for public rental housing, so that the backlog is expected to be cleared by 1996-7.
However, to meet increasing demand, the construction programme in the coming years will be geared to producing a steadily-increasing proportion of flats for sale under the home ownership schemes.
Meanwhile, the first of the new Harmony range of blocks is expected to be completed in 1992. Quality assurance plans are taking shape with the completion of two consultancy studies - one aimed at advising building contractors how to establish quality management systems within their companies, and one to assist the authority's Construction Branch on its own quality systems.
Other quality initiatives included selecting contractors based on the new performance assessment scoring system, and the use of an increasing number of quality assured components. In a further move to upgrade the standard of rental housing, aluminium windows were specified in new contracts, and the first contracts calling for precast facade panels were tendered.
Research and development are being carried out on a number of projects which will ensure public housing satisfies the needs of Hong Kong in the coming decade. These include measures to meet the increasing demand for single and small household accom- modation, more hygienic methods of refuse collection and the provision of higher standard welfare facilities.
Urban Housing
On Hong Kong Island, Stage II site formation at Shau Kei Wan East Estate has been completed and building contracts for a number of phases of Yiu Tung Estate have been awarded.
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