XN000022-1973-03-15 — Page 19

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Thursday, March 15, 1973

"More funds and manpower must be allocated to expedite the

planning and preparation work for the sale of areas in Old Naval Yard,

Wan Chai and Kowloon Bay reclamations, Yau Tong, Sha Tin reclamation,

and areas in Castle Peak or even the Kam Tin valley in the New Territories."

The lack of or inadequate control in rents, he said, had contributed

to Hong Kong having the highest rents in the world. "It has also created

a virtual monopoly of key business premises where the demands for exorbitant

rents are pace-setting."

Mr. Wu pointed out that contrasting the 3 per cent increase in

1972 as mentioned by the Financial Secretary, the rental of flatted factories

had gone up from 40 to 50 cents per sq. ft. in early 1972 to 80 to 90 cents

a sq. ft. for upper floor premises in late 1972 and early 1973

increase of nearly 100 per cent.

P

an annual

He also cited examples of land prices which had gone up tremendously

within a short period of time recently.

He said a large part of industry and commerce and unfortunate

domestic tenants would be saddled with exceedingly and increasingly burdensome

rents which no increase in productivity could alleviate without substantial

price or wage increases, thereby perpetrating and aggravating the vicious cycle.

On transport problems, Mr. Wu said he was rather concerned that

the immediate and constant improvement of road works should be overshadowed

or even jeopardised by the mass transit scheme.

/At the .