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WEDNESDAY, OCTOBER 29, 1986
REPLYING TO THE HON TAM YIU-CHUNG'S QUESTION CONCERNING COMPARISON BETWEEN PUBLIC AND PRIVATE HOUSING RENTS, MR LIAO SAID THE TWO WERE NOT REALLY COMPARABLE AS THE FORMER INCLUDED RATES AND MANAGEMENT FEES AS WELL AS OTHER MAJOR REPAIR AND MAINTENANCE CHARGES.
HE SAID THE PRESENT RENT LEVEL IN PUBLIC HOUSING ESTATES REPRESENTED ABOUT A THIRD OF THE MARKET LEVEL.
MR LIAO ADDED THAT THE 1986 BI-CENSUS PUBLISHED YESTERDAY (TUESDAY) SHOWED THAT HALF OF THOSE HOUSEHOLDS OCCUPYING WHOLE FLATS IN PRIVATE HOUSING PAID A RENT OF LESS THAN $1 794. +THIS COMPARED WITH THE $350 FOR THOSE IN PUBLIC RENTAL BLOCKS, + HE ADDED.
ON THE REPORT ON HOUSING SUBSIDY TO TENANTS OF PUBLIC HOUSING, MR LIAO SAID IT HAD TAKEN A REALISTIC APPROACH TO REDUCING SUBSIDIES, AND TO CHARGE WELL-OFF TENANTS A HIGHER RENT IF THEY PREFERRED TO STAY IN PUBLIC HOUSING.
ON THE QUESTION OF WHETHER THESE TENANTS COULD AFFORD TO PAY DOUBLE RENT, MR LIAO SAID TENANTS AFFECTED BY THE COMMITTEE RECOMMENDATIONS WERE IN EFFECT AMONG THE TOP 15 PER CENT HOUSEHOLDS IN TERMS OF INCOME IN THE WHOLE TERRITORY.
+THEIR MEDIAN MONTHLY INCOME IS AROUND $13 200 AND THEY ARE ONLY PAYING A MEDIAN RENT OF $330 PER MONTH, + HE SAID.
+ IF THEIR NET RENTS WERE TO BE DOUBLED. THEY WOULD HAVE TO PAY A NEW MEDIAN RENT OF AROUND $600, REPRESENTING FOUR TO SIX PER CENT OF THEIR INCOME.
+ THE NEW RENT IS CLEARLY WELL WITHIN THEIR AFFORDABILITY.+
COMMENTING ON THE VIEW THAT IT WAS UNREASONABLE TO INCLUDE ALL THE INCOME OF WORKING CHILDREN IN CALCULATING HOUSEHOLD INCOME, MR LIAO SAID INCLUDING 60 PER CENT OF THE INCOME OF WORKING CHILDREN WAS IN FACT THE ORIGINAL PROPOSAL MADE BY THE COMMITTEE.
+THIS WAS SUBSEQUENTLY CHANGED IN RESPONSE TO PUBLIC COMMENTS AND THE SUBSIDY INCOME LIMIT NOW PROPOSED IS A MORE GENEROUS FIGURE,+ HE SAID.
ON A SUGGESTION THAT A MORE ACCURATE SURVEY BE CONDUCTED TO ESTABLISH THE TRUE FINANCIAL POSITION OF FAMILIES IN PUBLIC HOUSING ESTATES, MR LIAO SAID A CLEARER FINANCIAL PICTURE OF PUBLIC HOUSING TENANTS WOULD BECOME AVAILABLE IF THE COMMITTEE'S PROPOSAL WERE ADOPTED AND TENANTS WERE REQUIRED TO DECLARE THEIR INCOME.
/MR LIAO
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