XN000022-1977-01-05 — Page 3

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WEDNESDAY, JANUARY 5, 1977

ESTABLISHMENT OF HOME OWNERSHIP FUND

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THE LEGISLATIVE COUNCIL TODAY APPROVED A MOTION TO ESTABLISH A REVOLVING FUND TO FINANCE THE CONSTRUCTION OF FLATS FOR SALE UNDER THE HOME OWNERSHIP SCHEME.

MOVING THE MOTION FOR THE ESTABLISHMENT OF THE HOME OWNERSHIP FUND, THE FINANCIAL SECRETARY, THE HON. PHILIP HADDON-CAVE, SAID THE INTENTION WAS TO CREDIT THE FUND WITH SUCH APPROPRIATIONS FROM GENERAL REVENUE AS THE LEGISLATIVE COUNCIL MIGHT APPROVE FROM TIME TO TIME.

HE RECALLED THAT IN NOVEMBER LAST THE GOVERNMENT DECIDED THAT THE FIRST PHASE OF AN INITIAL BUILDING PROGRAMME, DESIGNED TO PRODUCE ABOUT 6,000 FLATS FOR SALE, SHOULD BE BUILT BY THE HOUSING AUTHORITY ON BEHALF OF THE GOVERNMENT.

+WHEN THE HOUSING AUTHORITY HAS COMPLETED AND COSTED THEIR PROPOSALS FOR THE INITIAL 6,000 FLATS SHALL INVITE FINANCE COMMITTEE TO CREATE A NEW EXPENDITURE SUBHEAD AND APPROPRIATE THE NECESSARY FUNDS EITHER THIS YEAR OR NEXT, HE SAID.

MR. HADDON-CAVE SAID THAT IF AND WHEN MADE BY THE COUNCIL, THE RESOLUTION WOULD AUTHORISE HIM TO EXPEND MONIES FROM THE FUND TO MEET THE FULL COST OF PROVIDING FLATS FOR SALE. HE ENVISAGED THAT EXPENDITURE WOULD COVER SUCH ITEMS AS LAND AND CONSTRUCTION COSTS, AS WELL AS REIMBURSEMENTS TO THE HOUSING AUTHORITY FOR SALARIES, ON-COSTS AND OTHER EXPENSES PROPERLY ATTRIBUTABLE TO THE DESIGN, CONSTRUCTION AND SALE OF FLATS.

+THE FULL PROCEEDS FROM THE SALE OF FLATS WILL BE CREDITED TO THE FUND AS INCOME, HE SAID. +SUITABLE ARRANGEMENTS FOR ASSISTING WOULD-BE PURCHASERS TO ACQUIRE THEM ARE STILL BEING WORKED OUT, BUT I HOPE TO BE ABLE TO MAKE A DEFINITIVE STATEMENT AS TO THE GOVERNMENT'S INTENTION IN THE BUDGET SPEECH.+

THE FINANCIAL SECRETARY EXPECTED THAT THE INCOME ACCRUING TO THE FUND WOULD EXCEED TOTAL TRANSFERS INTO THE FUND FROM GENERAL REVENUE, AS THE SELLING PRICE OF THE FLATS WOULD INCLUDE AN ELEMENT OF INTEREST ON DRAWINGS ON THE FUND.

+AS THESE EXCESSES, IF THEY ARISE, WILL BE SURPLUS TO THE REQUIREMENTS OF THE FUND THERE IS A PROVISION IN THE RESOLUTION ENABLING ME TO TRANSFER THEM FROM THE FUND INTO GENERAL REVENUE,+ HE ADDED.

SPEAKING IN SUPPORT OF THE MOTION, THE HON. HILTON CHEONG-LEEN HOPED EVERYTHING POSSIBLE WOULD BE DONE TO ENSURE THAT THE FLATS WOULD BE COMPETITIVELY COSTED TO AT LEAST NOT HIGHER THAN IF DONE BY PRIVATE ENTERPRISE - AND OFFERED AT A SUITABLE PRICE TOGETHER WITH AN ATTRACTIVE LONG-TERM REPAYMENT PLAN.

/SINCE SUCH