XN000022-1979-10-10 — Page 11

WEDNESDAY, OCTOBER 10, 1979

9.

GOVERNMENT DECIDES ON LOWER

PUBLIC HOUSING PRODUCTION TARGET

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THE GOVERNMENT HAS DECIDED ON A LOWER PUBLIC HOUSING PRODUCTION TARGET OF 35 000 UNITS A YEAR BUT THIS IS STILL ABOUT DOUBLE LAST YEAR'S FIGURE, THE GOVERNOR, SIR MURRAY MACLEHOSE SAID TODAY (WEDNESDAY).

IN HIS ADDRESS TO THE LEGISLATIVE COUNCIL, SIR MURRAY SAID THAT TO ATTEMPT EVEN TO APPROACH THE ORIGINAL TARGET OF 45 000 UNITS A YEAR WOULD ONLY BE AT THE EXPENSE OF INTOLERABLE STRAIN ON THE WHOLE CONSTRUCTION INDUSTRY, WHICH WAS EXPECTED TO PRODUCE ADDITIONALLY 30 000 FLATS FOR THE PRIVATE SECTOR AS WELL AS CATERING FOR A WHOLE RANGE OF MASSIVE PUBLIC AND PRIVATE WORKS.

+AGAINST THIS BACKGROUND, AND THE REVIEW OF PUBLIC SECTOR EXPENDITURE GENERALLY, THE GOVERNMENT DECIDED ON A LOWER TARGET OF 35 000 UNITS A YEAR FOR RENTED AND HOME OWNERSHIP ACCOMMODATION.

+THIS IS STILL ABOUT DOUBLE LAST YEAR (FIGURE) AND AN EXTRAORDINARILY HIGH LEVEL OF PRODUCTION, AND WHEN COUPLED WITH THE 30 000 UNITS IN THE PRIVATE SECTOR, SHOULD MAKE STEADY IN-ROADS INTO THIS CHRONIC PROBLEM OF HOUSING SHORTAGE, HE SAID.

SIR MURRAY NOTED IT IS ENCOURAGING THAT 70 PER CENT OF NEW FLATS PURCHASED IN THE PRIVATE SECTOR ARE FOR OWNER-OCCUPIERS.

+NEVERTHELESS GIVEN THE DIMENSIONS OF THE NEED FOR HOUSING, ITS AGGRAVATION BY IMMIGRATION, AND THE ACUTE PERSONAL, ECONOMIC AND ADMINISTRATIVE PROBLEMS THAT WILL EXIST UNTIL IT IS MET, I WOULD BE RELUCTANT TO ACCEPT THE PRESENT BALANCE BETWEEN PRIVATE AND PUBLIC SECTOR BUILDING AS PERMANENT, AT ANY RATE AT PRESENT PRICES.

+ IN THE SHORT TERM IT MAY BE ACCEPTABLE - WE ARE IN A SITUATION IN WHICH VIRTUALLY ALL NEW HOUSING IS BENEFICIAL BUT WE SHOULD PONDER THE SOCIAL AND ECONOMIC IMPLICATIONS OF HIGHER PRICES CHARGED FOR THE PRIVATE SECTOR HOUSING BEING BUILT INTO THE BUDGETS OF AN EVER WIDENING SECTION OF OUR POPULATION.

+SIMILARLY WE MUST WEIGH THE PUBLIC ADVANTAGE OF THE DEMANDS ON THE CONSTRUCTION INDUSTRY GENERALLY OF PUBLIC WORKS ON THE ONE HAND AND PRIVATE CONSTRUCTION ON THE OTHER, HE SAID.

SIR MURRAY SAID THERE WAS NOTHING IMMUTABLE ABOUT THE FIGURE OF 35 000, IN DIFFERENT ECONOMIC CIRCUMSTANCES IT SHOULD BE POSSIBLE TO IMPROVE ON IT. BUT SHORT OF THE MOST IMPERATIVE OF ECONOMIC SITUATIONS WE MUST NOW ALLOW OURSELVES TO DROP BELOW IT.+

BE POINTED