XN000022-1973-03-15 — Page 7

Thursday, March 15, 1973

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Because of the skyrocketing land prices, said Mr. Ann, rent levels

of ordinary acceptable commercial flats had now far exceeded that which the

middle class citizens could afford.

"Pressure for higher increase of salaries and wages is looming on

the horizon and will eventually further aggravated the inflationary trend of

the warned.

our economy,

Mr. Ann disagreed with the Financial Secretary's estimate that the

rate of rent increases for flatted industrial factories during 1972 was 3.5

per cent.

Rent Increases

"A more realistic appraisal of offical statistics on rent increases

gives a figure of 27 per cent on average, which is closer to the experience of

manufacturers who estimate rises in the region of 30 to 40 per cent on average,"

he said.

Mr. Ann accused the Government of overemphasising the possibilities

of increases in foodstuffs, in relation to repegging the Hong Kong dollar, and

said that if food price rises could induce a chain reaction then so could rents.

He viewed with concern the dwindling of savings deposits which in January

this year had dropped by about $1,000 million from $8,306 million and predicted

that the February figure might be even more alarming.

**There is evidence," he said, "that from January this year these savings

deposits are now moving out into current accounts, ready for plunge into the

stock market or to be consumed in more extravagant living."

/Referring