MONDAY, SETPEMBER 26, 1990
REVIEW OF HOME FINANCING SCHEME
*
ADMINISTRATION WILL SUBMIT A PACKAGE OF PROPOSALS FINANCE COMMITTEE OF THE LEGISLATIVE COUNCIL SHORTLY FOR THE OF THE RATES OF ALLOWANCE UNDER THE HOME FINANCING SCHEME (HFS).
THE
WERE PROPOSALS
SEPTEMBER 13.
APPROVED BY
THE
ΤΟ REVISION
THE
GOVERNOR-IN-COUNCIL
ON
FINANCING
1.
"WE ARE PROPOSING TO INCREASE THE RATES OF THE HOME
CENT ON NOVEMBER ALLOWANCE (HFA) FOR NEW PARTICIPANTS BY 35 PER 1994,
"
A GOVERNMENT SPOKESMAN SAID.
OF THE
"THE GOVERNMENT ALSO PROPOSES TO INCREASE THE CEILING DOWN PAYMENT LOAN AVAILABLE UNDER THE SCHEME FROM 20 PER CENT OF PROPERTY PRICE OR 18 MONTHS OF AN OFFICER'S SALARY TO 30 PER CENT THE PROPERTY PRICE OR 24 MONTHS OF AN OFFICER'S SALARY, THE LESSER," HE SAID.
THE HFS
OR
SERVANTS ON CURRENTLY WITH
WAS INTRODUCED ON OCTOBER 1, 1990
MASTER PAY SCALE ABOVE
THE OF
WHICHEVER IS
TO ASSIST CIVIL POINT 34, THAT IS
IS THOSE TO ACQUIRE A A MONTHLY SALARY OF $35,735 OR MORE,
EXPENDITURE ON PERMANENT HOME AND TO REDUCE GOVERNMENT'S LONG-TERM CIVIL SERVICE HOUSING BENEFITS BY INDUCING ELIGIBLE OFFICERS TO UP THEIR ENTITLEMENT TO THE MORE EXPENSIVE OPTIONS, THAT IS PRIVATE TENANCY ALLOWANCE (PTA) AND NON-DEPARTMENTAL QUARTERS (NDQ).
ENTITLEMENT
WHEREAS PTA
AND
NDQ
GIVE
ARE THE HFS IS A 10-YEAR PROVIDED AS LONG AS THE ELIGIBLE OFFICERS REMAIN IN THE CIVIL SERVICE.
THE HFS. (IN NET PRESENT
"AS
AT JULY 1, 1994, OVER 6,700 OFFICERS HAD JOINED THIS WILL RESULT IN A NET SAVING OF $12.8 BILLION VALUE TERMS) IN 20 YEARS," THE SPOKESMAN SAID.
HAD NOT BEEN AVERAGE
THE SPOKESMAN
OUT THAT THE HFA RATES POINTED ADJUSTED SINCE 1990 BUT THE PROPERTY PRICES HAD INCREASED ON BY OVER 158 PER CENT.
POLICY MORTGAGE
COMMONLY
"THIS, COUPLED WITH THE CAUTIOUS ADOPTED BY BANKS, HAS LED TO A RAPID DECLINE IN THE NUMBER OF OFFICERS JOINING THE SCHEME.
"BY INCREASING THE HFA RATES AND THE DOWN PAYMENT LOAN,
JOIN THE SCHEME, EXPECTED THAT MORE OFFICERS WILL BE INDUCED TO THEREBY ACHIEVING FURTHER SAVINGS FOR THE GOVERNMENT.
IT
IS
A
"THE
ESTIMATED TOTAL NET SAVINGS FROM NEW PARTICIPANTS OVER
11 THE 20-YEAR PERIOD WILL BE AROUND $4.5 BILLION IN NET PRESENT VALUE, SPOKESMAN SAID.
SUBJECT TO APPROVAL, THE EXISTING RATES OF $13,000 TO ALLOWANCE WILL BE INCREASED TO $17,500 TO $48,600 PER MONTH.
$36,000
MOVEMENTS. "ANNUAL ADJUSTMENTS WILL BE BASED ON PROPERTY PRICE TO CONTAIN COSTS, THESE ADJUSTMENTS WILL BE CAPPED BY INFLATION. OFFICERS WILL GET THE PREVAILING RATES AT JOINING AND WILL NOT BE ELIGIBLE FOR FURTHER REVISIONS, SAID.
THE RATE OF THE TIME OF THE SPOKESMAN
/EXISTING HFA