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WEDNESDAY, OCTOBER 29, 1986

MR CHEUNG POINTED OUT THAT THE DOMESTIC RENT POLICY REVIEW COMMITTEE, IN RECOMMENDING THE LIMIT, HAD SENSIBLY BASED ITS CONSIDERATION ON THE ABILITY OF PROSPECTIVE TENANTS TO PAY.

+THERE IS AMPLE EVIDENCE IN THEIR REPORT TO SUPPORT THE VIEW THAT 15 PER CENT IS WELL WITHIN THE AFFORDABILITY OF THE TENANTS, HE SAID.

MR CHEUNG NOTED THAT MANY ELIGIBLE FAMILIES WERE STILL WAITING PATIENTLY IN THE PRIVATE SECTOR FOR THEIR TURN TO MOVE INTO PUBLIC HOUSING.

HE SAID THESE PRIVATE SECTOR TENANTS VERY OFTEN HAD TO PAY A RENT WHICH WAS ABOUT THREE TO FOUR TIMES MORE THAN THAT PAID BY FAMILIES LIVING IN PUBLIC HOUSING FLATS. IT WAS NOT UNCOMMON FOR A NEW TENANT IN THE PRIVATE SECTOR TO PAY UP TO 40 PER CENT OF HIS INCOME AS RENT.

+1 THEREFORE SUPPORT THE PROPOSED GUIDING RATIO OF 15 PER CENT, NOT FORGETTING THAT STATISTICS HAVE CLEARLY INDICATED THAT AFTER MOVING INTO PUBLIC HOUSING, TENANTS CONTINUE TO ENJOY A STEADY RISE IN THEIR LIVING STANDARD, HE SAID.

TURNING TO THE REPORT ON HOUSING SUBSIDY, MR CHEUNG STRESSED THAT PUBLIC HOUSING SHOULD BE DIRECTED TOWARDS THOSE IN NEED. AND THAT THE AIM SHOULD BE TO HELP THEM TO BECOME ABLE TO HELP THEMSELVES.

HE THEREFORE FELT THAT HEAVILY SUBSIDISED PUBLIC HOUSING SHOULD NOT BE LOOKED UPON AS A LIFE-LONG ENTITLEMENT.

HE SAID THAT ONCE A FAMILY HAS PASSED THE DIFFICULT PERIOD WHEN THEY MOST NEEDED ASSISTANCE IN HOUSING, THEY SHOULD NO LONGER BE ENTITLED TO A SUBSTANTIAL HOUSING SUBSIDY.

HE OBSERVED THAT SHORT OF FORCED EVICTION, HIGHER RENT FOR THOSE WHO HAD IMPROVED THEIR FINANCIAL POSITION CONSIDERABLY AFTER MOVING INTO PUBLIC HOUSING WAS THE ONLY ALTERNATIVE.

HE THEREFORE SUPPORTED THE PROPOSALS IN THE REPORT.

LASTLY, MR CHEUNG SAID IT SHOULD BE THE HOUSING AUTHORITY'S POLICY IN THE LONG RUN TO BE SELF-FINANCING AND TO BE ABLE TO PROVIDE SUFFICIENT HOUSING AT A RENT AFFORDABLE BY TENANTS WITHOUT SIGNIFICANTLY LOWERING THEIR LIVING STANDARD.

HE ALSO PRAISED THE HARD WORK OF MEMBERS OF THE TWO COMMITTEES AND STAFF OF THE HOUSING DEPARTMENT IN PREPARING THE REPORTS.

+ THEY HAVE BEEN SUBJECTED TO A LOT OF PRESSURE AND SOME

UNKIND CRITICISMS,+ HE SAID.

+THEY HAVE BEEN SHOWN IMMENSE PATIENCE AND TACT, AND FOR THESE THEY HAVE WON MY RESPECT.+

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