XN000022-1973-11-12 — Page 3

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Monday, November 12, 1973

In future clearances, cash compensation will be offered to those

who qualify but, if flatted factory space is available, owners of small

undertakings of 50 to 3,000 square feet will have the option of applying

for a unit, or wits, instead. But no change of trade or assignments will

be allowed.

If all eligible undertakings opt for cash, it is estimated that

it will cost the government $5 million to cover the rest of this year's

commitment, and a probable $9 million in 1974-75.

Mr. David Weeks, Administrative Officer (Clearance) of Housing

Department, said the amount of cash compensation had been computed on the

basis of capitalizing the subsidy element in the differential between

government and commercial factory rents,

"It is necessary to change our policy at this time because although

there is a shortage of Housing Authority units, there is a good supply of

suitable premises in the private sector, and we must press on with our

clearances. Families living in small workshops will continue to be offered

public housing", he said.

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