XN000022-1980-03-26 — Page 9

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WEDNESDAY, MARCH 26, 1980

MR LI CONTINUED: +LAND AND ITS PROPER UTILISATION IS

AT PRESENT SUBJECT TO A MULTIPLICITY OF CONTROL WITHIN THE ADMINISTRATION. THIS MUST INEVITABLY HAVE AN EFFECT ON THE RATE AT WHICH LAND CAN BE PRODUCED, AND THUS ON ITS AVAILABILITY FOR THE MANY ESSENTIAL PURPOSES FOR WHICH THERE IS SUCH A HEAVY AND COMPETING DEMAND.

→WITH THE EXISTING GOVERNMENT MACHINERY THERE CAN BE ONLY MINOR IMPROVEMENTS IN THE SPEED OF LAND PRODUCTION.

+ WOULD THEREFORE URGE GOVERNMENT TO CONSIDER THE EARLY INTRODUCTION OF A SYSTEM OF UNIFIED CONTROL, WHICH COULD EITHER BE IN THE FORM OF A SEPARATE BRANCH OR DEPARTMENT,+ MR LI SAID.

HE ALSO NOTED THAT ALTHOUGH THE INFLATION NOW SUFFERED BY HONG KONG WAS TO A SIGNIFICANT EXTENT IMPORTED, IT IS CLEAR FROM THE NEED TO IMPOSE EXTENSIVE RENT CONTROL THAT THE IMBALANCE BETWEEN THE DEMAND FOR AND SUPPLY OF PROPERTY AND LAND HAS BEEN A CONTRIBUTING FACTOR TO THE DOUBLE-DIGIT INFLATION SUSTAINED BY HONG KONG IN 1978 AND 1979.

+IT IS EQUALLY OBVIOUS THAT ANY INCREASES IN CONSUMER PRICES OF THIS ORDER WILL MORE SEVERELY AFFECT THE MIDDLE-INCOME GROUPS, MANY OF WHOM ARE NOT ELIGIBLE FOR PUBLIC HOUSING ACCOMMODATION. WITH THE PRESENT STATE OF THE PROPERTY MARKET, FEW ARE FINANCIALLY ABLE TO PURCHASE THEIR OWN HOMES UNLESS THEY ARE FORTUNATE ENOUGH TO HAVE BEEN SELECTED FOR PARTICIPATION IN THE HOME OWNERSHIP SCHEME, HE SAID.

REFERRING TO THE AMOUNT OF LAND WHICH WILL BECOME AVAILABLE IN 1980-81 AND IN THE FOLLOWING THREE YEARS FORECAST PERIOD, MR LI SAID: THESE FIGURES ARE UP-TO-DATE FORECASTS, BUT WILL THE LAND MADE AVAILABLE BE ABLE TO MEET WITH LEGITIMATE DEMAND IN BOTH THE PUBLIC AND PRIVATE SECTORS?

+ IF NOT, ARE WE LIKELY TO SEE A CONTINUING ESCALATION IN THE PRICE OF LAND AND ALL THAT IT PORTENDS FOR THIS COMMUNITY, MR LI ASKED.

ON THE FOUR CONCESSIONS IN PERSONAL TAXATION, MR LI SAID THEY WERE +TIMELY AND APPRECIATED BY MANY BREADWINNERS+.

MR LI POINTED OUT THAT THE INCREASES IN PERSONAL ALLOWANCES, CHILD ALLOWANCES AND DEPENDENT PARENT ALLOWANCES WERE NOT UNGENEROUS IN MONEY TERMS, BUT THEY WOULD BARELY MATCH THE EROSION IN PURCHASING POWER IN REAL TERMS.

+HOWEVER, TAKING INTO CONSIDERATION THAT THE COST OF THESE TAX CONCESSIONS TO THE REVENUE IS ALREADY SUBSTANTIAL, WE AGREE TO SUPPORT THE PROPOSAL THOUGH NOT WITHOUT SOME RELUCTANCE, MR LI SAID.

+WE WOULD ACCORDINGLY REQUEST THAT THE ALLOWANCES AND ASSESSMENT PROVISIONS SHOULD BE REVISED PERIODICALLY IN THE LIGHT OF REVENUE RETURNS, HE ADDED.

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