XN000022-1973-03-14 — Page 2

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Wednesday, March 14, 1973

SPEED UP IN LAND SALES CALLED FOR

To Curb Excessive Rent Increases

Top priority must be given to speeding up land sales so as to

alleviate the shortage of domestic accommodation and stave off further

excessive rent increases, the Hon. P.C. Woo said today.

"Not only are rents for the middle and lower income groups a

cause for concern, but spiralling land prices will also in the long run

affect the cost of production of goods for export on which the whole health

of the Hong Kong economy depends," he warned.

Council.

Mr. Woo was speaking at the annual Budget debate in the Legislative

Re described the new budget as a memorable one which had "the

hallmark of success. It not only reflected the great strides of the

economy, but Hong Kong's high hopes and aspirations for the future as well,

he said.

However, not everyone was satisfied, he added, particularly those

in the lower and middle income range who did not benefit from subsidised

housing and who had to spend an increasing proportion of their income on

spiralling rents.

While the Financial Secretary might decry any suggestion of inflation, said Mr. Woo, "nevertheless there does seem to be a danger that prices might

shortly start to increase as rapidly or more rapidly than production if no steps are taken to prevent excessive profiteering in key areas, of which

rent is the most important."

/He urged