MONDAY, MAY 9, 1994
PROPOSALS ON FINANCIAL ARRANGEMENTS WITH THE HA
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THE GOVERNMENT TODAY (MONDAY) SET OUT A PACKAGE OF PROPOSALS ON FINANCIAL ARRANGEMENTS WITH THE HOUSING AUTHORITY (HA) AIMED AT ENABLING THE AUTHORITY TO MAKE BETTER USE OF ITS SURPLUS CASH TO SPEED UP THE SUPPLY OF PUBLIC HOUSING AND UPGRADE ITS EXISTING ESTATES.
PRESENTING THE PROPOSALS TO MEMBERS OF THE HOUSING AUTHORITY TODAY, THE SECRETARY FOR THE TREASURY, MR DONALD TSANG, SAID THE AUTHORITY WAS NOW FINANCIALLY VERY ROBUST.
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"THE AUTHORITY ESTIMATES THAT IT HAS A POSITIVE GROSS CASH BALANCE OF $18.2 BILLION AS AT MARCH 31
1994. OF THIS, WE ESTIMATE THAT THE NET CASH SURPLUS TO THE AUTHORITY'S OPERATIONAL REQUIREMENTS IS ABOUT $9.5 BILLION. THIS WILL RISE TO $17 BILLION BY THE END OF 1997/98," HE SAID.
MR TSANG SAID: PRODUCTIVE USE.
"CLEARLY WE SHOULD PUT THESE HUGE SUMS TO
"ALTHOUGH THE GOVERNMENT IS ENTITLED TO TAKE BACK THIS SURPLUS INTO GENERAL REVENUE, WE FEEL IT IS IN THE PUBLIC INTEREST то LEAVE THE MONEY WITH THE AUTHORITY TO FUND MORE HOUSING AND HOUSING-RELATED PROJECTS.
"WE HAVE THEREFORE PROPOSED THAT THE BULK OF THE SURPLUS SHOULD GO TOWARDS SETTING UP A DEVELOPMENT FUND TO SPEED UP THE SUPPLY OF ASSISTED HOUSING FOR THOSE IN NEED.
"WE ESTIMATE THAT A DEVELOPMENT FUND COULD BE SET UP WITH AN INITIAL CASH BALANCE OF $7.5 BILLION. DISBURSEMENT WILL REQUIRE AGREEMENT OF THE AUTHORITY AND THE GOVERNMENT, HE SAID.
THE
MR TSANG SAID THE GOVERNMENT REMAINED FULLY COMMITTED TO THE LONG-TERM HOUSING STRATEGY.
**WE WILI. CONTINUE TO PROVIDE FREE LAND FOR RENTAL PUBLIC HOUSING AND SUBSIDISED LAND FOR THE HOME OWNERSHIP SCHEME.
"THE COST OF THIS FOR THIS YEAR ALONE WILL BE $21 BILLION. WE WILL ALSO PROVIDE FURTHER CAPITAL INJECTIONS TO THE HOUSING AUTHORITY
IF NECESSARY.
MR
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TSANG SAID WITH THE ESTABLISHMENT OF THE DEVELOPMENT
FUND, AND ASSUMING THAT THE AUTHORITY WILL HAVE A NET CASH SURPLUS OF $17 BILLION BY 1997/98, IT SHOULD BE ABLE TO SPEED UP THE PRODUCTION OF HOUSING BY UP TO 10,000 FLATS PER YEAR OVER THE NEXT FIVE YEARS. THIS WILL BE ON TOP OF THE CURRENT PUBLIC HOUSING PRODUCTION TARGETS.
"THESE EXTRA FLATS, TOGETHER WITH PARALLEL EFFORTS BY THE GOVERNMENT TASK FORCE SET UP TO TACKLE PRIVATE HOUSING PRICES, SHOULD HAVE A STABLISING EFFECT ON ALL SECTORS OF THE HOUSING MARKET, HE SAID.
IN ADDITION TO THE DEVELOPMENT FUND, THE PROPOSALS PUT TO THE HOUSING AUTHORITY TODAY INCLUDED USING THE REMAINING PART OF THE SURPLUSES TO SET UP OF A NEW $2 BILLION IMPROVEMENT ACCOUNT WITHIN THE HA'S EXISTING CAPITAL WORKS FUND.
/"THE IMPROVEMENT
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