XN000022-1979-11-14 — Page 3

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WEDNESDAY, NOVEMBER 14, 1979

MR. SCOTT REPEATED THAT THE PROGRAMME HAD BEEN LEAST AFFECTED BY THE CUTS IN PUBLIC SPENDING ANNOUNCED IN THE BUDGET, AND THAT WHEN ECONOMIC CIRCUMSTANCES AND THE CAPACITY OF THE CONSTRUCTION INDUSTRY PERMITTED, THE HOUSING AUTHORITY HOPED TO INCREASE OUTPUT.

HOWEVER HE WARNED THAT ABOUT 250 000 PEOPLE HAD ENTERED HONG KONG LEGALLY OR ILLEGALLY SINCE JANUARY LAST YEAR, THAT MANY WOULD BRING RELATIVES FROM CHINA OR MARRY HERE, AND THAT BY THE MIDDLE OR LATE 1980'S THE REAL IMPACT MIGHT BE AROUND HALF A MILLION PEOPLE, MOST OF THEM ELIGIBLE FOR PUBLIC HOUSING UNDER PRESENT POLICIES.

ON THE SUBJECT OF BETTER-OFF PUBLIC HOUSING TENANTS CONTINUING TO ENJOY SUBSIDISED HOUSING, MR. SCOTT REVEALED THAT THE HOUSING AUTHORITY RECENTLY DECIDED THAT TENANTS OF MARK 1 AND MARK I RESETTLEMENT UNITS WOULD NO LONGER BE ELIGIBLE TO TRANSFER VOLUNTARILY TO BETTER FLATS IN OTHER ESTATES IF THEIR INCOME WAS DOUBLE THE CURRENT INCOME LIMIT FOR PUBLIC HOUSING.

HOME OWNERSHIP SCHEME (HOS):

ON A SUGGESTION THAT THE PROPORTION OF HOS FLATS TO RENTAL FLATS BE RAISED TO 50 OR 70 PER CENT, MR. SCOTT SAID HE AGREED THAT THE PROPORTION SHOULD BE RAISED, BUT NOT BY SUCH A GREAT AMOUNT. SINCE THE BULK OF OUR EFFORT MUST CONTINUE TO GO TOWARDS THE LOWEST INCOME GROUP, WHO ARE THE MAJORITY OF THE POPULATION.+

HOWEVER, HE ADDED, PLANS ARE NOW WELL ADVANCED TO TRANSFER TO THE HOME OWNERSHIP SCHEME A NUMBER OF FLATS IN RENTAL ESTATES WHICH ARE UP TO HOS STANDARDS.

PRIVATE-SECTOR RENTS.

AT THE END OF SEPTEMBER, HE SAID, THERE WERE ABOUT 863 000 DOMESTIC PREMISES IN HONG KONG, ́422 000 ́EN" THE PUBLIC SECTOR AND 441 000 IN THE PRIVATE SECTOR.

OF THE 441 000 +PRIVATE+ PREMISES, ONLY 43 000 ARE NOT OWNER-OCCUPIED OR UNDER RENT CONTROL THAT IS, LESS THAN 10 PER CENT OF THE TOTAL.

A GROUP UNDER MR. SCOTT RECENTLY HAD LOOKED AGAIN AT THE COMPLICATED QUESTION OF AN EXTENSION OF RENT CONTROL -- AND LOOKED SYMPATHETICALLY AND THOROUGHLY AT IT - BUT CONCLUDED THAT WHAT MIGHT BE DONE WOULD NOT HAVE SUFFICIENT BENEFICIAL EFFECT TO OUTWEIGH THE DAMAGE THAT IT MIGHT DO.

ELABORATING, MR. SCOTT SAID: THE GOVERNMENT MUST BE RESPONSIVE AND SYMPATHETIC, BUT IT MUST ALSO BE SURE THAT ANY PROPOSED IMMEDIATE PALLIATIVE IS EFFECTIVE AND OPERATES EQUITABLY, AND THAT THE MEDIUM AND LONG-TERM EFFECTS WILL NOT OUTWEIGH ITS SHORT-TERM VALUE.+

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