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THURSDAY, JANUARY 24, 1980
HE ALSO NOTED THAT ALTHOUGH IN THE FIRST WEEK OF THIS MONTH, DAILY ARRESTS WERE ENCOURAGINGLY LOW, IN THE PAST TWO WEEKS THERE HAS BEEN AN INCREASE: NOT THE FIGURES OF DECEMBER, BUT NEVERTHELESS RATHER WORRYING.
TURNING TO THE ECONOMY, SIR JACK SAID 1979 PROVED TO BE ANOTHER YEAR OF RAPID ECONOMIC GROWTH AND THE LATEST GDP FORECAST SUGGESTED THAT THE GROWTH RATE WOULD BE 10 PER CENT OR MORE FOR THE FOURTH YEAR RUNNING. HE DESCRIBED IT AS A +QUITE REMARKABLE RECORD+ WHICH WAS ACHIEVED AGAINST A MUCH MORE STABLE BACKGROUND THAN HONG KONG EXPERIENCED IN 1978.
REVIEWING 1979, HE SAID MUCH OF HONG KONG'S INFLATION IN THE YEAR WAS IMPORTED: +INCREASES IN WORLD OIL PRICES, WHICH AFFECT OUR LIVES NOT JUST THROUGH INCREASED COSTS IN OIL-BASED FUELS AND THE GAS AND ELECTRICITY DERIVED FROM THEM, BUT ALSO OUR IMPORTS AND THE TRANSPORT COST OF ALL GOODS, VERY FEW ASPECTS OF OUR DAILY LIVES, INDEED, ARE NOT AFFECTED, HE SAID.
HE SAID WHILE THERE WAS LITTLE THE GOVERNMENT COULD DO TO CUSHION HONG KONG AGAINST THE EFFECTS OF RISES IN WORLD PRICES GENERALLY, WE WERE ONLY TOO WELL AWARE DURING LAST YEAR, THAT, IN SPITE OF THE ECONOMY'S MOVE TOWARDS GREATER STABILITY, THERE WAS STILL AN UNACCEPTABLY HIGH LEVEL OF DOMESTICALLY-GENERATED INFLATION.
THIS WAS PARTICULARLY TRUE OF ONE IMPORTANT SECTOR THE PROPERTY MARKET. HE SAID 1979 SAW PRICES OF FLATS ESCALATING TO DIZZY NEW HEIGHTS AND THERE WAS EVIDENCE OF UNREASONABLE LEVELS OF RENT-INCREASE BEING ASKED BY LANDLORDS.
AS A RESULT THE GOVERNMENT LAST MONTH DECIDED TO EXTEND RENT-INCREASE CONTROL TO ALL DOMESTIC TENANCIES AND SCHEMES ARE PRESENTLY BEING CONSIDERED TO CURB SPECULATION ON UNCOMPLETED FLATS.
HE SAID THESE MEASURES WHILE STILL ONLY PROPOSALS AND YET TO BE FULLY DEBATED IN LEGISLATIVE COUNCIL, HAD ALREADY HAD A CALMING EFFECT ON THE DOMESTIC PROPERTY MARKET.
SIR JACK SAID RENT-INCREASE CONTROLS COULD NOT OF THEMSELVES BE THE ANSWER: THE ONLY ANSWER TO A SHORTAGE OF HOUSING WAS THE BUILDING OF MORE HOUSING.
+WE RECOGNISE, AND ACCEPT, THAT WHAT IS NEEDED IS A PACKAGE - A PACKAGE TO INCLUDE NOT JUST ACTION IN RESPECT OF THE PROPERTY MARKET, BUT ALSO AN INCREASE IN THE PRODUCTION OF FORMED LAND, A CONTINUING HIGH RATE OF PRODUCTION OF HOUSING FOR RENT AND AN EXPANDED HOME-OWNERSHIP SCHEME.+
HE SAID THE GOVERNMENT ENVISAGED THAT THERE WOULD BE A MARKED INCREASE IN THE AMOUNT OF LAND MADE AVAILABLE TO THE PRIVATE SECTOR FOR PRIVATE COMMERCIAL AND RESIDENTIAL DEVELOPMENT, IN ADDITION TO A GOOD PERCENTAGE OF PRIVATE INDUSTRIAL DEVELOPMENT. THE GOVERNMENT'S TARGET IS TO BRING UP PRODUCTION TO AT LEAST 400 HECTARES OF SERVICED LAND EACH YEAR FOR ALL PURPOSES BY 1982/83 AND IT IS HOPED TO BE ABLE TO MAINTAIN AT LEAST THIS RATE OF PRODUCTION THEREAFTER.
TURNING TO