XN000022-1980-01-24 — Page 15

developments.

with the necessary and longed-for new roads and other important capital

It is therefore up to all of us to ensure that the inflation

we can help to control is kept down. Runaway inflation in any sector is not

good for anybody in the long run.

What is clearly imperative is to ensure a continuing high rate of land-

production both for private and public development. The past three financial

years have seen an average annual production of about 370 hectares of serviced

land in both the urban areas and the New Territories, of which about 23 per cent was

for industrial use and 9 per cent for private commercial and residential development.

Our present target is to bring up production to at least 400 hectares of

serviced land each year for all purposes by 1982/3, and it is hoped to be able

to maintain at least this rate of production thereafter, We envisage that

there will be a marked increase in the amount made available to the private

sector for private commercial and residential development, in addition to a

good percentage for private industrial development.

I said "at least" 400 hectares a year. This, remember, refers to

present plans: we are clearly going to need new areas to maintain this rate,

so in parallel we are proceeding with engineering design work for further.

development areas in Junk Bay and Tide Cove, and further investigation of

Tuen Mun Eastern Extension and North Lantau with a view to ensuring that

sufficient land will be made available to meet demand. In saying this, I am

well aware, very well aware, of the increased and increasing demand for

housing. Rent-increase controls cannot of themselves be the answer: the

only answer to a shortage of housing is the building of more housing. He

recognise, and accept, that what is needed is a package - a package to include

not just action in respect of the property market, but also an increase in

the production of formed land, a continuing high rate of production of

housing for rent and additional emphasis on home-ownership.

/I make