XN000022-1977-11-09 — Page 22

WEDNESDAY, NOVEMBER 9, 1977

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GOING OVER THE MAIN POINTS IN THE NEW RENT POLICY, MR. SCOTT SAID RENTS OF POST-1973 ESTATES WOULD BE KEPT AT THEIR CURRENT LEVELS FOR THE TIME BEING, BEING REVIEWED PERIODICALLY IN FUTURE TO TAKE INTO CONSIDERATION INCREASING MANAGEMENT AND MAINTENANCE COSTS AND GENERAL INCOME LEVELS.

FOR NEW ESTATES, RENTS WOULD BE DETERMINED AFTER AN ASSESSMENT OF THE RELATIVE VALUE OF EACH NEW ESTATE AS COMPARED WITH OTHER ESTATES, TAKING INTO ACCOUNT FACTORS SUCH AS LOCATION, AMENITIES, ENVIRONMENT AND SERVICES.

FOR PRE-1973 ESTATES, RENTS WOULD BE REVIEWED EVERY TWO YEARS WITH PARTICULAR REGARD BEING GIVEN TO GENERAL ECONOMIC CONDITIONS.

REPLYING TO POINTS MADE BY REV. THE HON. PATRICK MCGOVERN, MR. SCOTT POINTED OUT THAT IF RENTS WERE FIXED STRICTLY ACCORDING TO THE COST OF EACH ESTATE WHEN IT WAS BUILT, A PERSON WHO WAS IN PUBLIC HOUSING NOW WOULD OVER THE YEARS ENJOY A PROGRESSIVELY GREATER BENEFIT COMPARED WITH A PERSON WHO ENTERED PUBLIC HOUSING AT A LATER DATE, IF ONLY BECAUSE OF THE CONTINUOUS INCREASE IN CONSTRUCTION COSTS.

HE SAID: +1 THINK THESE FACTS ARE WELL UNDERSTOOD BY THE MAJORITY OF PEOPLE - CERTAINLY BY THE 'MAN IN THE STREET' WHO IS NOT YET THE MAN IN PUBLIC HOUSING.'+

TURNING TO ANOTHER RECENT SUGGESTION THAT RENTS BE BASED SOLELY ON AMORTISED CONSTRUCTION COSTS AND RECURRENT COSTS ESTATE BY ESTATE, MR. SCOTT SAID THAT IF THIS WERE DONE, THE AUTHORITY COULD NOT ACHIEVE A BALANCED RENT STRUCTURE AND WOULD BE COMPELLED TO CONSIDER SUBSTANTIAL RENT INCREASES FOR 60 PER CENT OF PRESENT FLATS.

+1 MUST EMPHASISE THAT NOTHING IS FURTHER FROM THE MIND OF THE AUTHORITY, HE SAID.

ON HOME OWNERSHIP, MR. SCOTT SAID GOOD PROGRESS WAS BEING MADE ON ALL ASPECTS OF THE GOVERNMENT'S HOME OWNERSHIP SCHEME.

ON A SUGGESTION THAT THE SCHEME BE EXTENDED IN SOME WAY TO ASSIST HOUSEHOLDS EARNING BETWEEN $3,500 AND $6,000 A MONTH, HE SAID IT APPEARED THAT SUCH HOUSEHOLDS COULD ALREADY ACQUIRE HOMES ON CURRENT MARKET TERMS WITHOUT UNDUE FINANCIAL STRAIN.

THE INCOME LEVEL FOR ELIGIBILITY, AS WELL AS OTHER CRITERIA, WOULD BE REVIEWED REGULARLY, BUT FOR THE PRESENT ATTENTION SHOULD BE FOCUSED ON LESS WELL-OFF HOUSEHOLDS.

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