1
WEDNESDAY, MARCH 30, 1994
GOVT TO INTERVENE PROPERTY PRICES:
FS
THE GOVERNMENT HAS DECIDED TO TAKE A MAJOR STEP TO INTERVENE IN THE PROBLEM OF HIGH PROPERTY PRICES AND KEEP THEM DOWN, THE FINANCIAL SECRETARY, THE HON SIR HAMISH MACLEOD, SAID IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).
CONCLUDING THE DEBATE ON THE SECOND APPROPRIATION BILL 1994, SIR HAMISH SAID:
READING OF THE
+
BOTH THE CHIEF
"WE ARE SERIOUS ABOUT TACKLING THIS ISSUE. SECRETARY AND I ARE PERSONALLY COMMITTED TO FINDING A SOLUTION.
"WE RECOGNISE THERE IS A PROBLEM, AND WE HAVE DECIDED TO INTERVENE. THAT IN ITSELF IS A MAJOR STEP, GIVEN OUR GENERAL BELIEF IN LETTING THE MARKET DECIDE," HE SAID,
RISKS.
THE FINANCIAL SECRETARY ADDED THAT INTERVENTION WAS NOT WITHOUT
"IT IS NOT POSSIBLE TO FINE-TUNE PROPERTY PRICES, BUT ONLY TO NUDGE THEM FAIRLY CRUDELY IN A PARTICULAR DIRECTION."
SIR HAMISH BELIEVES IT IS RIGHT TO FOCUS ON THE POSITIVE STEP OF INCREASING LAND SUPPLY AS THE KEY.
CLEARLY OTHER BASICALLY NEGATIVE MEASURES, SUCH AS STAMP DUTY AND REDUCED MORTGAGE LENDING, HAVE SIMPLY NOT HAD SUFFICIENT IMPACT, HE ADDED.
HE ALSO BELIEVES THE QUICKEST AND GREATEST IMPACT IS LIKELY TO BE MADE BY HARNESSING THE ENERGIES OF THE PRIVATE SECTOR AND OF QUASI- GOVERNMENT BODIES TO THIS NEW CHALLENGE.
IN SUPPORT OF THIS SPECIAL EXERCISE TO INCREASE LAND SUPPLY, SIR HAMISH SAID HE WAS PREPARED TO CONSIDER PROVIDING FUNDS IF A GOOD CASE COULD BE MADE.
ONE EXAMPLE MIGHT BE TO SET ASIDE A SUM OF MONEY TO REIMBURSE PRIVATE DEVELOPERS FOR PROVIDING THE INFRASTRUCTURE NEEDED TO ENABLE NEW HOUSING TO PROCEED ON AN ACCELERATED BASIS.
ANOTHER EXAMPLE MAY BE TO ASSIST THE LAND DEVELOPMENT CORPORATION OR THE HOUSING SOCIETY TO ACCELERATE THEIR PROGRAMMES, INCLUDING LOANS TO IMPROVE THEIR CASHFLOWS, AND SO TO ALLOW THEM TO PUT MORE COMMERCIAL AND RESIDENTIAL UNITS ON TO THE MARKET.
"OUR AIM IS TO PRODUCE A CREDIBLE PACKAGE OF MEASURES WHICH WILL NOT ONLY INCREASE THE SUPPLY, BUT BE SUFFICIENT TO REDUCE PRICES.
H
1 REPEAT, OUR AIM IS TO START A DOWNWARD TREND IN PRICES, NOT TO KEEP LAND PRICES HIGH. THIS WILL NOT BE EASY, BUT WE ARE PUBLICLY COMMITTED TO TRY, AND TO TRY HARD OVER THE NEXT FEW MONTHS TO IDENTIFY AND IMPLEMENT THE BEST MEANS OF ACHIEVING RESULTS.
/ON THE