XN000022-1982-03-25 — Page 16

THURSDAY, MARCH 25, 1982

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MR WONG ALSO DREW MEMBERS' ATTENTION TO THE HEALTHY AND GROWING ECONOMIC RELATIONSHIP BETWEEN HONG KONG AND CHINA.

HE SAID TRADE STATISTICS FOR 1981 REVEALED THAT CHINA RANKED SECOND AS HONG KONG'S MAJOR SUPPLIER AND THE FIFTH BUYER, ADDING THAT THE POTENTIAL FOR FURTHER EXPANSION IS ENORMOUS.

AS THERE IS A DISTURBING ABSENCE OF AGGRESSIVE PROMOTIONAL ACTIVITIES IN CHINA, MR WONG SAID A PLANNED AND SYSTEMATIC POLICY OF PROMOTING OUR PRODUCTS, OUR SERVICE AND OUR EXPERTISE IN CHINA IS URGENTLY NEEDED.

IN FORMULATING THIS POLICY, WE SHOULD CONCENTRATE OUR EFFORTS ON INDUSTRIAL DEVELOPMENTS IN THE SPECIAL ECONOMIC ZONES.

+AS REGARDS TRADE AND COMMERCE, WE SHOULD REACH OUT TO THE DEVELOPING INDUSTRIAL CENTRES AND CITIES IN THE NORTHEAST, THE LIGHT INDUSTRIAL ZONES IN THE SOUTHWEST AND NORTHWEST, AND THE COASTAL PROVINCES, HE ADDED.

TURNING TO HOUSING, MR WONG WAS CONCERNED THAT DESPITE A SERIES OF MEASURES IMPLEMENTED LAST YEAR TO ACCELERATE THE PUBLIC HOUSING PROGRAMMES, THE HOUSING AUTHORITY'S WAITING LIST HAS REMAINED DISAPPOINTINGLY STATIC.

HOWEVER, THE NUMBER OF PRIVATE DOMESTIC UNITS FOUND VACANT IN 1981 STOOD AT 29 700.

+THIS GIVES RISE TO THE HIGHLY UNSATISFACTORY SITUATION WHERE COMPLETED FLATS, INTO WHICH LABOUR, MATERIAL AND OTHER VALUABLE RESOURCES HAVE BEEN PUT TO USE, STAND VACANT WHILE THE PRESSURE ON HOUSING CONTINUES TO SURGE, HE REMARKED.

TO RECTIFY THIS SITUATION, HE SUGGESTED THAT INTEREST PAYABLE ON THE PURCHASE OF SMALL DOMESTIC PREMISES BY THE SANDWICHED CLASS SHOULD BE EXEMPTED FROM TAXATION.

AND TO QUALIFY FOR SUCH DEDUCTION OR ALLOWANCE, A POTENTIAL PURCHASER MUST BE THE INTENDED OWNER-OCCUPIER OF HIS FIRST PURCHASED FLAT DIRECT FROM THE REAL ESTATE DEVELOPER.

THE SIZE OF THE FLAT SHOULD NOT EXCEED A CERTAIN LIMIT, SAY 90 SQUARE METRES, AND THE DEDUCTIBLE SUM COULD BE RESTRICTED TO A CERTAIN CEILING OF THE OWNER-OCCUPIER'S FAMILY INCOME IN ORDER TO LIMIT THE FINANCIAL IMPLICATIONS AND COST, HE SAID.

+GRANTED THAT THE IMPLEMENTATION OF THIS PROPOSAL WOULD ENTAIL AN INTENSIVE IRONING OUT OF ADMINISTRATIVE PROBLEMS, IT COULD SERVE TO SOLVE, WITHIN A RELATIVELY SHORT PERIOD OF TIME, THE PRESSING TWIN PROBLEMS OF ENABLING THE SANDWICHED CLASS, WHO ARE NOT ELIGIBLE FOR GOVERNMENT HOUSING OR SUBSIDIES, TO PURCHASE THE IR OWN HOMES AND, AT THE SAME TIME, OF REDUCING THE ACCUMULATED STOCK OF SMALL FLATS IN A SLUGGISH PROPERTY MARKET TO ENCOURAGE NEW DEVELOPMENTS, MR WONG SAID.

ON TRANSPORT, MR WONG URGED THE GOVERNMENT TO ACCORD TOP PRIORITY TO THE EXAMINATION AND CONSTRUCTION OF A SECOND VEHICULAR CROSS HARBOUR LINK, BE IT ANOTHER TUNNEL OR A BRIDGE.

/HE SAID THE