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THURSDAY, NOVEMBER 6, 1986
DR IP OBSERVED THAT LOCAL CONSTRUCTION COMPANIES WERE RUNNING INTO DIFFICULTIES BECAUSE OF THE CUT-THROAT COMPETITION BOTH BETWEEN LOCAL COMPANIES THEMSELVES AND BETWEEN LOCAL AND FOREIGN COMPANIES.
THE COMPETITION, WHICH WAS SHOWN BY FALLING PROJECT TENDER PRICES, WAS MADE WORSE BY A FALL IN THE FORECAST GROWTH RATE OF PRIVATE SECTOR EXPENDITURE AND A DECLINE IN PUBLIC EXPENDITURE ON BUILDING AND CONSTRUCTION, SHE SAID.
+THIS COMPETITION HAS FORCED SOME COMPANIES INTO LIQUIDATION, SOME INTO SERIOUS DECLINES IN ANNUAL PROFITS, SOME INTO TENDERING AT A LOSS TO OFFSET FURTHER LOSSES IN OVERHEADS WHILE LYING IDLE,+ DR IP SAID.
SHE WONDERED FOR HOW LONG AND AT WHOSE EXPENSE THE GOVERNMENT WAS REAPING THE BENEFIT OF ARTIFICALLY DEPRESSED TENDER PRICES.
+WHAT I AM CONCERNED ABOUT IS THAT WHEN THE TIME COMES WHEREBY ONLY A HANDFUL OF COMPANIES ARE LEFT IN THE ARENA, TENDER PRICES WILL RISE AND MAY RISE EXPONENTIALLY, SHE SAID.
DR IP SUGGESTED THAT THE GOVERNMENT SHOULD ENCOURAGE THOSE CONSTRUCTION COMPANIES WHICH DROPPED OUT OF TENDERING TO GO INTO SMALL-SCALE PRIVATE RE-DEVELOPMENT OF OLDER BUILDINGS WITH AN OFFER OF ATTRACTIVE PREMIUM PAYABLE FOR LEASE MODIFICATION SO THAT THEIR EXPERTISE COULD CONTINUE TO BENEFIT HONG KONG.
ON THE ISSUE OF PROCESSING NEW BUILDING PLAN SUBMISSIONS, DR IP NOTED THAT THE STATUTORY PERIOD FOR PROCESSING WAS INCREASED FROM 28 DAYS TO 60 DAYS FROM JULY 1, 1973, BUT QUESTIONED WHY IT COULD NOT BE DONE MORE SWIFTLY.
SHE THEREFORE SUGGESTED THE SETTING UP OF A REVIEW COMMITTEE TO LOOK INTO THE WHOLE QUESTION OF THE APPROVAL OF BUILDING PLANS.
TURNING TO THE ISSUE OF UNAUTHORISED BUILDING WORKS, SHE FELT THAT IT WOULD NEVER BE RESOLVED AS LONG AS UNSCRUPULOUS CONTRACTORS AND GUILTY TENANTS WERE NOT PENALISED FOR THESE WORKS.
SHE ASKED THE GOVERNMENT TO PROPOSE NEW LEGISLATION AND TO CONSIDER APPLYING THE MAGISTRATES AMENDMENT ORDINANCE TO THE CONTROL OF UNAUTHORISED BUILDING WORKS.
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