XN000022-1978-08-16 — Page 16

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WEDNESDAY, AUGUST 16, 1978

7,000 SMALL FACTORY UNITS IN THREE YEARS

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THE HOUSING AUTHORITY WILL BUILD 7,000 SMALL FACTORY UNITS IN THE NEXT THREE YEARS, THE SECRETARY FOR HOUSING, THE HON. ALAN SCOTT, TOLD LEGISLATIVE COUNCIL TODAY IN REPLY THE HON. HILTON CHEONG-LEEN.

MR. SCOTT ADDED INFORMATION ON THE RANGE OF SIZES OF FACTORY UNITS TO BE COMPLETED BY THE PRIVATE SECTOR WAS NOT COMPILED BY THE GOVERNMENT BECAUSE DEVELOPERS HAD A DEGREE OF DISCRETION TO CHANGE THE INTERNAL LAYOUT OF THEIR BUILDINGS.

BUT HE REVEALED THAT THE HIGH LEVEL OF SUPPLY OF FLATTED FACTORY UNITS OF ALL SIZES COMPLETED IN 1977, TOTALLING 8.9 MILLION SQUARE FEET, WOULD CONTINUE AND GROW WITH FORECAST COMPLETIONS AT 9.9 MILLION SQUARE FEET IN 1978 AND 13 MILLION SQUARE FEET IN 1979.

REFERRING TO MR. CHEONG-LEEN'S SECOND QUESTION OF WHETHER SUCH FACTORY UNITS WOULD FALL SHORT OF DEMAND, MR. SCOTT SAID IT WAS DIFFICULT TO ASSESS THE ACTUAL DEMAND IN THE PUBLIC OR PRIVATE SECTOR.

HOWEVER, RECENT EXPERIENCE OF CLEARANCES INDICATED THAT THE AUTHORITY'S STOCK OF FACTORY UNITS WOULD NOT BE SUFFICIENT TO MEET DEMAND IN THE FIRST PART OF THE THREE-YEAR PERIOD FROM 1977 TO 1979.

FOR THE PRIVATE SECTOR, MR. SCOTT SAID IT WAS NOT POSSIBLE TO FORECAST ACCURATELY THE DEMAND BECAUSE IT DEPENDED ON SEVERAL FACTORS INCLUDING THE GENERAL STATE OF THE ECONOMY AND THE STATE OF SMALL INDUSTRIES, IN PARTICULAR, RENT LEVELS, LOCATIONS, ACCESS AND PROXIMITY TO ESSENTIAL FACILITIES AND SO ON.

+HOWEVER, WITH THE CONTINUING LARGE SUPPLY OF ALL TYPES OF FLATTED FACTORIES, IT IS THOUGHT THAT THE SPACE COMING ON STREAM WILL ADEQUATELY MEET LIKELY REQUIREMENT, HE SAID.

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