XN000022-1983-04-13 — Page 6

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WEDNESDAY, APRIL 13, 1983

SALE OF PUBLIC HOUSING FLATS

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THERE WERE SOME FINANCIAL BENEFITS IN SELLING PUBLIC HOUSING FLATS TO SITTING TENANTS BUT ITS FEASIBILITY HAD TO BE EVALUATED AGAINST A PUBLIC HOUSING POLICY OF EXTREMELY LOW RENTAL AND ALMOST COMPLETE SECURITY OF TENURE.

THIS WAS STATED TODAY BY THE SECRETARY FOR HOUSING, THE HON DONALD LIAO, IN THE LEGISLATIVE COUNCIL IN REPLY TO DR THE HON HARRY FANG AND THE HON ANDREW SO WHO HAD MADE THE PROPOSAL.

MR LIAO SAID THAT IF THE PURCHASE TERMS WERE TO BE MADE SUFFICIENTLY ATTRACTIVE, FLATS EVEN IN THE NEWER ESTATES WOULD HAVE TO BE PRICED AT A LEVEL FAR LOWER THAN THAT SUGGESTED BY DR FANG.

+THEREFORE, EVEN ON THE ASSUMPTION THAT SEVEN PER CENT OF EXISTING TENANTS WOULD BUY THEIR FLATS, THE REVENUE LIKELY TO BE GENERATED WOULD BE MUCH LESS THAN $3.5 BILLION OVER SEVERAL YEARS.

+ANOTHER IMPORTANT CONSIDERATION WOULD BE THE MANY SOCIAL PROBLEMS ASSOCIATED WITH MANAGING BLOCKS WITH A MIXED POPULATION OF PRIVATE OWNERS AND PUBLIC TENANTS.

+ALTHOUGH THIS COULD THEORETICALLY BE OVERCOME BY EARMARKING COMPLETE BLOCKS FOR SALE, THIS WOULD INVOLVE MOVING OUT FAMILIES UNABLE OR UNWILLING TO BUY, LEADING TO MUCH DISRUPTION AND RESENTMENT.

+THE EXPERIENCE WITH THOSE RELUCTANT TO MOVE IN THE COURSE OF REDEVELOPMENT OF OLD ESTATES DURING THE PAST 10 YEARS HAS AMPLY ILLUSTRATED THE SORT OF PROBLEMS THAT WOULD ARISE.+

HOWEVER, MR LIAO ENTIRELY AGREED THAT WELL-OFF PUBLIC HOUSING TENANTS SHOULD BE ACTIVELY ENCOURAGED TO BUY THEIR OWN HOMES, AND SAID THIS WAS ONE OF THE MAIN REASONS FOR THE HOME OWNERSHIP SCHEME.

+THE PRESENT PRACTICE IS TO SET ASIDE 50 PER CENT OF HOS FLATS FOR SALE TO PUBLIC HOUSING TENANTS, AND TO DATE SOME 10 000 NEW FLATS HAVE BEEN SOLD TO THIS GROUP.+

HE ALSO AGREED THAT IN THE CONTEXT OF HOUSING PRIORITIES, THE BALANCE BETWEEN HOS AND RENTAL FLATS NEEDED TO BE REVIEWED.

+WHILE THERE IS A CONTINUING HIGH DEMAND FOR PUBLIC RENTAL HOUSING, THERE IS ALSO A STRONG UNDERLYING DEMAND FOR HOME OWNERSHIP.

+THE FACT THAT THE NUMBER OF APPLICATIONS FOR HOS FLATS HAS CONSISTENTLY EXCEEDED BY MANY TIMES THE NUMBER OF FLATS AVAILABLE CLEARLY DEMONSTRATES THIS TREND, AND WE ARE EXAMINING WAYS AND MEANS BY WHICH MORE FLATS CAN BE PROVIDED TO MEET THE ASPIRA IONS OF THOSE THE SCHEME IS DESIGNED TO BENEFIT.+

/IN PUBLIC