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L:
FS: Industrial land - I don't know enough about whether the sites were good ones or bad ones. I know that there are a number of auctions coming up in the next few weeks and they include some industrial land, so it may simply be that the sites coming up in the very near future are better. But I think the main focus has not been, after all, on industrial land, that is not the problem. The problem has been residential and office, and particularly residential. So the market is still alive and kicking.
Question: (on withdrawal of sites from land auction)
FS: I don't know. I mean that is really for the Director of Lands and Tony Eason to sort out. As I say, the residential is actually what everybody has been focusing on. The residential market, as I say, is alive and kicking, so from that point of view I am encouraged.
Question: (on Government policy to curb speculation)
FS: Yes, remember that the aim which we announced last year was basically twofold. First of all, to reduce speculation - and we have done that, I think, rather successfully. Secondly, it was, in the medium to long term, to increase the supply. That, of course, will happen over the next year, two years, three years. So both those will happen. Prices, of course, of residential property have gone down somewhat - somewhat; not a huge amount, I would say, but anyway they have gone down around 14 per cent as at sometime in January, from the peak. So they are still well above 1992/1993 levels.
Question: How are you going to further increase the supply of residential land?
an
FS: When we announced the package last year we announced a considerable number of sites and since then we have filled in some more details of sites which are being added to the Land Sales Programme. I don't have the list, obviously, in my head but we did announce the details at the time.
די
Question: Since the market prices of property have been going down, so do you think that Government will relax your policy on property market?
FS: I think we should let the market find its equilibrium. I am not going to judge whether it is the right level at the moment or not, I think it is for the market to find its equilibrium. One more question.
Question: Sir Hamish, do you expect that inflation may be going up further this year?
FS: I'm afraid that will be in the Budget. Thank you very much.
End/Thursday, February 23, 1995