XN000022-1979-02-28 — Page 22

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WEDNESDAY, FEBRUARY 28, 1979

35 PER CENT MORE FUNDS EARMARKED FOR HOUSING

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THE GOVERNMENT WILL PROVIDE A FURTHER 142,220 PUBLIC HOUSING FLATS OVER THE NEXT FOUR FISCAL YEARS FROM 1979-80 TO 1982-83, INCLUDING 25,400 FLATS TO BE BUILT UNDER THE HOME OWNERSHIP SCHEME.

PRESENTING THE ANNUAL BUDGET IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY), THE FINANCIAL SECRETARY

THE FINANCIAL SECRETARY, THE HON. PHILIP HADDON-CAVE, SAID THE DRAFT ESTIMATES FOR 1979-80 PROVIDED FOR EXPENDITURE OF $1,100 MILLION ON PUBLIC HOUSING FOR RENTING AND RELATED FACILITIES.

BUT HE ADDED THAT IF DRAWINGS FROM THE HOME OWNERSHIP FUND WERE ALSO TAKEN INTO ACCOUNT, TOTAL DISBURSEMENTS WOULD BE OF THE ORDER OF $1,450 MILLION, AN INCREASE OF 35 PER CENT OR $373 MILLION OVER THE REVISED ESTIMATE FOR 1978-79.

+NO LESS THAN $932 MILLION, REPRESENTING AN INCREASE OF $417 MILLION OR 81 PER CENT OVER THE REVISED ESTIMATE FOR 1978-79 OF $515 MILLION, IS TO BE TRANSFERRED TO THE DEVELOPMENT LOAN FUND FOR ON-LENDING TO THE HOUSING AUTHORITY FOR THE RENTED HOUSING PROGRAMME,+ THE FINANCIAL SECRETARY SAID.

+THIS SUBSTANTIAL INCREASE IS NECESSARY FOR THE FIRST YEAR OF A FOUR-YEAR CONSTRUCTION PROGRAMME AIMED AT ACHIEVING A LEVEL OF PRODUCTION OF PUBLIC HOUSING OF ABOUT 35,000 FLATS A YEAR, FOR WHICH TOTAL DRAWINGS FROM THE DEVELOPMENT LOAN FUND OF $3,260 MILLION AT MID-1978 PRICES WILL BE REQUIRED, HE ADDED.

ON THE HOME OWNERSHIP SCHEME, THE FINANCIAL SECRETARY SAID THE REVISED ESTIMATE FOR 1978-79 OF PAYMENTS FROM THE HOME OWNERSHIP FUND ON THE PRODUCTION OF THE 12,733 FLATS IN PHASES 1 AND OF THE CONSTRUCTION PROGRAMME WAS NEARLY $298 MILLION AND THE ESTIMATE FOR 1979-80 WAS $349 MILLION.

+THE REVISED ESTIMATE FOR 1978-79 OF DRAWINGS FROM THE DEVELOPMENT LOAN FUND FOR FINANCING THE COMMERCIAL FACILITIES IN PHASE I AND II IS NEARLY $66 MILLION. THE ESTIMATE FOR 1979-80 IS $28 MILLION,+ HE SAID.

THE FINANCIAL SECRETARY ALSO NOTED THAT THE INCOME LIMIT FOR ELIGIBILITY FOR HOME OWNERSHIP IN THE PUBLIC SECTOR OF $3,500 A MONTH WAS SET UP IN FEBRUARY 1977.

+AS INCOMES HAVE INCREASED IN BOTH REAL AND MONEY TERMS OVER THE LAST TWO YEARS, THE INCOME CRITERION OF ELIGIBILITY NEEDS TO BE REVISED, THE FINANCIAL SECRETARY SAID.

+OTHERWISE, THE SCHEME WILL BE CATERING FOR A LOWER INCOME GROUP THAN IT WAS ORIGINALLY MEANT TO ASSIST, HE ADDED.

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