XN000022-1981-07-13 — Page 4

MONDAY, JULY 13, 1981

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THE CIVIL SERVICE BRANCH HAS SET UP A SPECIAL TEAM TO IMPLEMENT THE ARRANGEMENTS, AND A COMPUTER PROGRAMME WILL BE DEVELOPED TO EFFECT PAYMENTS AND REPAYMENTS. APPLICATIONS FOR THE HPA AND THE LOANS WOULD BE CONSIDERED EVERY QUARTER AND IT IS EXPECTED THAT THE FIRST OF THESE WILL BE INVITED AS SOON AS DETAILED PROCEDURES ARE FINALISED BUT IT WILL NOT BE LATER THAN OCTOBER.

THE GOVERNMENT SPOKESMAN SAID THAT THE CURRENT ARRANGEMENTS WHEREBY A QUOTA OF PUBLIC HOUSING UNITS ARE SET ASIDE EACH YEAR FOR JUNIOR CIVIL SERVANTS WOULD CONTINUE. CURRENTLY, THIS QUOTA IS 1 100 UNITS PER ANNUM, BUT IT WAS INTENDED THAT THE SIZE OF THIS QUOTA WOULD BE KEPT UNDER REGULAR REVIEW.

WITH REGARD TO CO-OPERATIVE HOUSING SCHEMES FOR LOCAL OFFICERS, IT HAS BEEN DECIDED TO DISCONTINUE SUCH SCHEMES IN THE PRESENT FORM. HOWEVER, AN EXAMINATION WAS UNDERWAY TO CONSIDER WHETHER NEW WAYS COULD BE FOUND TO FACILITATE THE CONSTRUCTION OF FLATS FOR PURCHASE BY LOCAL OFFICERS. THIS EXAMINATION WAS BEING CONDUCTED INDEPENDENTLY OF THE INTRODUCTION OF THE NEW HOUSING ASSISTANCE SCHEMES, AND WOULD TAKE SOME MONTHS TO COMPLETE.

GOVERNMENT BUYS $2 500M MORE EQUITY IN MTR

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THE GOVERNMENT HAS AGREED TO PURCHASE FOR CASH A FURTHER $2 500 MILLION EQUITY IN THE MASS TRANS IT RAILWAY CORPORATION.

FOLLOWING AN EQUITY INJECTION OF $1 000 MILLION EARLIER IN THE YEAR, ITS ISSUED CAPITAL IS NOW $2 190 MILLION AND THE ADDITIONAL $2 500 MILLION WILL THEREFORE RAISE THE ISSUED CAPITAL TO $4 690 MILLION.

THE AUTHORISED CAPITAL OF THE CORPORATION IS $5 500 MILLION.

THE AUTHORISED CAPITAL OF THE CORPORATION WAS INCREASED FROM 000 MILLION TO $5 500 MILLION ON FEBRUARY 27, 1981.

THE MAIN PURPOSE OF INCREASING THE AUTHORISED CAPITAL WAS TO ENABLE THE GOVERNMENT TO MAKE A FURTHER EQUITY INVESTMENT IN THE CORPORATION AS A CAPITAL CONTRIBUTION TOWARDS THE COSTS OF CONSTRUCTION OF THE ISLAND LINE. THE CORPORATION WOULD NOT HAVE NEEDED TO DRAW ON THIS APPROPRIATION FOR SOME TIME, BUT IN VIEW OF THE FACT THAT THE CORPORATION'S INTEREST COSTS ARE VERY SUBSTANTIALLY HIGHER THAN WAS ANTICIPATED WHEN THE CORPORATION WAS FORMED IN 1975, THE GOVERNMENT HAS AGREED, SO AS TO ALLEVIATE THESE COSTS, TO BRING FORWARD THE ISLAND LINE EQUITY INVESTMENT.

AS A RESULT OF THIS LATEST INJECTION, THE CORPORATION WILL HAVE DRAWN ALL OF THE MONEY WHICH GOVERNMENT SET ASIDE IN THE MASS TRANSIT FUND FOR THE ISLAND LINE.

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