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if not adjusted for school-leavers) to 3.8% last September (or 4,34

unadjusted), and I hav. no doubt this trend has cortirued, It is still

comparativ ly low, but the trend is disturbing, and as the Financial Secretary

said yesterday, it may well continue until changes in Hong Kong costs or

increased external demand for Hong Kong products have revived demand

for labour.

There is no way in which the Goverment could intervene in this read-

justment process, but we have a safety net of social welfare payments to sustain

incomes at a defined point. And we have labour legisl¬tion. We are of

course r viewing both, particularly the first, to ensure that the basis of

payments is fair and up to date.

The drop in the growth rate of rol incomes and rise in unemployment

should be temporary as world conmic activity revives and our labour

supply becomes more stable. But the and which extra pouletion will

make on goods and services is permanent and because of the generally

low age group likely to expand. I therefor

entirely agree with wint you,

Sir, said about the importance cousing. Moreover, though the private

sector is building a very large number of housing units

+

perhaps 27 000 or

more last year their price has become so high that they are either

unobtainable to a 1-rge section of the population or are building into too

many family busts an element for rent or mortgage that is much higher

than they can comfortably bear. The Government's housing production has

at last reached fairly satisfactory levels around the 35 000 mark which will

be sustained, but clearly the target needs to be reviewed and the original

Home Ownership Scheme Committee will soon be reconvened to advise on the

continuation, expansion, and van widening the scope of the Hone wership

Prograre. While of course there must be no reduction of planned production.

cf government rented accommodation, I think that in expanding the possibility

of home

/mmership tr