XN000022-1975-10-23 — Page 8

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THURSDAY, OCTOBER 23, 1975

CALL FOR HOME OWNERSHIP SCHEME

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A HOME OWNERSHIP SCHEME WOULD BE FEASIBLE FOR HONG KONG IF THE GOVERNMENT MADE AVAILABLE LAND TO PRIVATE DEVELOPERS AT THE SAME VALUE AS FOR THE HOUSING AUTHORITY AND AGREED TO ACCEPT PAYMENT BY LONG TERM INSTALMENTS, DR. THE HON. HARRY FANG SAID TODAY.

HE SUGGESTED THAT THE LAND COULD BE AUCTIONED WITH SPECIFIC CLAUSES WRITTEN INTO THE LEASE THAT THE BUILDINGS CONSTRUCTED WOULD CATER FOR PEOPLE WITH SMALL MEANS AND WITH A STIPULATION THAT THE FLATS COULD NOT BE RESOLD BEFORE 10 OR 15 YEARS.

AS A START, HE WENT ON, THE SCHEME SHOULD BE OPEN TO ALL TENANTS IN PUBLIC HOUSING ESTATES BELONGING TO BOTH THE HOUSING AUTHORITY AND THE HOUSING SOCIETY, AND THOSE ON THE WAITING LISTS AS WELL AS TO SQUATTERS AND RESIDENTS IN LICENSED AREAS AND TENANTS IN OLD TENEMENT HOUSES.

THE HOME OWNERS, HE SUGGESTED, COULD PAY BY INSTALMENT OVER 15 TO 20 YEARS THROUGH ARRANGEMENTS WITH MERCHANT BANKS OR THE HONG KONG BUILDING AND LOAN SOCIETY, WITH OR WITHOUT DOWN PAYMENT,

+THE SUCCESS OF THIS SCHEME, DR. FANG SAID, +LIES IN THE AVAILABILITY OF URBAN LAND AT A REASONABLE PRICE, AN EXTENDED PERIOD OF INSTALMENT PAYMENT, AND AVAILABILITY OF FUNDS AT CHEAPER INTEREST RATES.+

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THE GOVERNMENT, HE ADDED, COULD IMPROVE THIS PROPOSAL BY FINANCING THE SCHEME BY FUNDS SEPARATELY RAISED THROUGH ISSUING DESIGNATED HOUSING BONDS, MATURING AT FIVE-YEARLY INTERVALS OVER 20 YEARS AT AN ANNUAL INTEREST OF SEVEN OR SEVEN AND A HALF PER CENT, AND ALLOWING THE HOME OWNERS THE BENEFITS OF LONG TERM BORROWING AT A LOWER INTEREST RATE THAN THE MARKET RATE.

DR. FANG NOTED THAT THE HOME OWNERSHIP HAD WORKED EXTREMELY WELL IN SINGAPORE, AND HE WAS CONVINCED THAT IT WOULD ALSO SUCCEED IN HONG KONG.

THE CONCEPT BEHIND THE SCHEME WAS MOST DESIRABLE, HE SAID, AND WOULD MAKE THE PARTICIPANTS FEEL THAT THEY THEMSELVES HAD A REAL STAKE IN HONG KONG, THIS WILL CREATE A TRUE SENSE OF BELONGING AND OF RESPONSIBILITY.+

HE NOTED THAT HOMES HAD BEEN PROVIDED FOR SOME 1.2 MILLION SINCE 1964, BUT OVER 800,000 SQUATTERS WERE STILL WAITING FOR PROPER HOMES. THIS WAS A SERIOUS PROBLEM AND IF THE PRESENT POLICY WAS NOT RATIONALLY CHANGED +EVEN IF WE HAVE THE FUNDS AVAILABLE AND GIVEN IDEAL SITUATIONS WE WOULD STILL BE UNABLE TO BUILD FAST ENOUGH FOR OUR NEEDS UNLESS WE CAN CLEARLY IDENTIFY WHERE OUR NEEDS ARE.+

/HE PERSONÁLLY

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