XN000022-1976-02-25 — Page 21

WEDNESDAY, FEBRUARY 25, 1976

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POSSIBILITY OF SELLING PUBLIC HOUSING FLATS STUDIED *****

ABOUT 96,400 PUBLIC HOUSING FLATS FOR 578,100 PEOPLE ARE EXPECTED TO BE COMPLETED BETWEEN 1976-77 AND 1979-80 AND THE GOVERNMENT IS EXPLORING THE POSSIBILITY OF BUILDING FLATS FOR SALE.

THESE PLANS TO CATER FOR HOUSING NEEDS WERE REVEALED BY THE FINANCIAL SECRETARY, THE HON. PHILIP HADDON-CAVE, IN HIS BUDGET SPEECH THIS AFTERNOON.

MR. HADDON-CAVE SAID THE FLATS TO BE BUILT IN THE SECOND HALF OF THIS DECADE WAS NEARLY 11 PER CENT MORE THAN THE ADDITION TO THE HOUSING STOCK IN THE FIRST FIVE YEARS OF THE DECADE.

HE NOTED THAT WORK ON THE CONSTRUCTION OF FURTHER ESTATES WOULD BE IN PROGRESS AT THE END OF 1979-80 FOR COMPLETION IN SUBSEQUENT YEARS.

+ IT IS HOPED THAT, BY 1984, ADEQUATE PUBLIC HOUSING WILL BE AVAILABLE TO MEET OVER 80 PER CENT OF THE ESTIMATED DEMAND, COMPARED WITH 57 PER CENT AT END OF 1975-76,+ HE ADDED.

ON THE FEASIBILITY OF BUILDING FLATS FOR SALE, THE FINANCIAL SECRETARY SAID THEY WOULD LARGELY BE SOLD TO EXISTING TENANTS OF PUBLIC HOUSING ESTATES SO THAT, AS THEY MOVED OUT, ROOM WAS MADE FOR OTHERS MORE IN NEED OF LOW-COST RENTED ACCOMMODATION TO MOVE IN.

+TO PRODUCE, SAY, 5,000 FLATS CAPABLE OF HOUSING AN ADDITIONAL 30,000 PEOPLE A YEAR, SUCH A SCHEME WOULD INVOLVE ESTABLISHING A REVOLVING FUND OF ABOUT $300 MILLION AND FINDING ABOUT 25 ACRES OF LAND A YEAR,+ HE SAID.

MR. HADDON-CAVE NOTED THAT THE TERMS OF SALE WOULD HAVE TO BE CAREFULLY DEVISED SO AS NOT TO INHIBIT PRIVATE DEVELOPMENT.

+ IT WOULD ALSO NEED TO BE SUPPORTED BY ADEQUATE MORTGAGE FACILITIES, ON FAIRLY ATTRACTIVE TERMS, FROM SOURCES OUTSIDE THE GOVERNMENT, SO THAT THE FUND WOULD REVOLVE FAST ENOUGH TO CONTINUE FINANCING THE CONSTRUCTION OF 5,000 FLATS A YEAR.+

THE FINANCIAL SECRETARY SAID SUCH A PROPOSAL WAS WELCOMED IN PRINCIPLE BY THE HOUSING AUTHORITY AND HE HOPED TO ESTABLISH A REVOLVING FUND WITHIN THE DEVELOPMENT LOAN FUND TO RAISE THE NECESSARY LOAN FINANCE.

HOWEVER, HE SAID, A GREAT DEAL OF DETAILED WORK WOULD THEN BE REQUIRED TO PRODUCE A PRACTICABLE SCHEME.

+MEANWHILE, THE FINANCIAL SECRETARY SAID, THE HOUSING DEPARTMENT ESTIMATES THAT IT WILL BE SPENDING, DURING 1976-77 ABOUT $220 MILLION ON THE HOUSING AUTHORITY'S EXISTING BUILDING PROGRAMMES, OF WHICH RATHER MORE THAN HALF WILL BE MET FROM BORROWINGS FROM THE DEVELOPMENT LOAN FUND AND THE BALANCE FROM THE AUTHORITY'S OWN FUNDS.+

HE ALSO