WEDNESDAY, MAY 22, 1991

FULL TEXT OF SPEL'S SPEECH IN DEBATE ON PROPERTY SPECULATION

THE FOLLOWING IS THE WINDING-UP SPEECH OF THE SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS, THE HON GRAHAM BARNES, IN THE MOTION DEBATE ON PROPERTY SPECULATION AT THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

SIR,

AFTER THIS WIDE-RANGING DEBATE, IT IS VERY DIFFICULT TO THINK OF ANYTHING NEW TO SAY ON THIS SUBJECT. SO CAN I CONFINE MYSELF TO SIMPLY UNDERLINING A FEW UTTERLY UNORIGINAL POINTS.

FIRST

UNCOMPLETED FLATS ARE ONLY A RELATIVELY SMALL PART OF THE HOUSING MARKET, AND THERE IS NO EVIDENCE OF SUBSTANTIAL SPECULATION IN COMPLETED FLATS. THERE ARE ALSO A VERY LARGE NUMBER OF FLATS OUT FOR SALE IN THE MARKET AND AS MR CHUNG PUI-LAM SAID THERE ARE SOME 60,000 ON THE WAY THIS YEAR WHICH CERTAINLY SHOULD HELP STABILISE THE MARKET.

SECOND

WE ARE NO LONGER DEALING WITH A MARKET IN WHICH BUYERS ARE DESPERATE TO FIND A HOME TO PURCHASE, OR NEED TO BE DESPERATE TO HAVE TO FIND A HOME TO PURCHASE. MOST FLATS ARE BEING BOUGHT BY PEOPLE WHO ARE SEEKING TO IMPROVE THEIR HOUSING OR FORMING NEW HOUSEHOLDS OR ARE LOOKING FOR INVESTMENTS.

THIRD

THERE IS A CONSIDERABLE DEGREE OF COMPETITION DEVELOPERS WHICH SHOULD INCREASE DURING THE NEXT YEAR WITH GREATER SUPPLY OF FLATS.

FOURTH

BETWEEN

AN EVEN

MARKETS

GOVERNMENT DOES NOT GENERALLY INTERFERE WITH FREE UNLESS THERE ARE VERY STRONG REASONS FOR DOING 30 AND IT HAS DONE SO WHEN THERE HAVE BEEN VERY STRONG REASONS FOR DOING 90. THIS IS NOT LAZINESS; IT IS BECAUSE IT IS VERY DIFFICULT TO INTERVENE EFFECTIVELY IN THE MARKET AND WITHOUT CAUSING EFFECTS WHICH ARE NOT INTENDED.

/FIFTH

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