XN000022-1983-05-13 — Page 2

FRIDAY, MAY 13, 1983

LAND PRODUCTION LEVELS MORE THAN ADEQUATE REPORT

****

THE EXISTING AND PLANNED LEVELS OF LAND PRODUCTION OVER THE NEXT FIVE YEARS ARE MORE THAN ADEQUATE TO MEET HONG KONG'S GROWING SOCIAL AND ECONOMIC NEEDS.

THIS WAS REVEALED BY THE SPECIAL COMMITTEE ON LAND SUPPLY IN ITS REPORT TO THE GOVERNOR FOR 1982. THE REPORT, WHICH IS PUBLISHED TODAY, IS ON SALE AT THE GOVERNMENT PUBLICATIONS CENTRE AT $20.

THE COMMITTEE, UNDER THE CHAIRMANSHIP OF THE HON LYDIA DUNN, HAS RECOMMENDED TARGETS FOR THE PRODUCTION AND SALE OF LAND AND HAS ASSESSED THE ADEQUACY OF GOVERNMENT PROJECTS IN RELATION TO THESE TARGETS.

AS IN LAST YEAR'S REPORT, THE COMMITTEE HAS CONCENTRATED ON THE PROVISION OF LAND FOR HOUSING, MANUFACTURING INDUSTRY AND GOVERNMENT AND COMMERCIAL OFFICES OVER THE NEXT FIVE YEARS.

POLICY OBJECTIVES HAVE BEEN TRANSLATED INTO REQUIREMENTS FOR NEW LAND, AND THESE HAVE BEEN COMPARED WITH CURRENT LAND PRODUCTION FORECASTS TO ASSESS HOW WELL LAND SUPPLY WILL MATCH LAND REQUIREMENT ARISING FROM POLICY OBJECTIVES.

IN ITS ASSESSMENT OF LAND REQUIREMENTS FOR VARIOUS LAND USES, A LONG TERM VIEW OF THE MARKET POTENTIAL HAS BEEN TAKEN AND THE IMPORTANCE OF DEVELOPMENT PLANS NOT BEING INFLUENCED BY SHORT TERM MARKET CONDITIONS HAS BEEN STRESSED.

THE COMMITTEE'S MAIN CONCLUSIONS ARE:

* FORECAST LAND SUPPLY SHOULD BE SUFFICIENT TO

SUSTAIN PRODUCTION OF PUBLIC RENTAL HOUSING AT 30 000 FLATS A YEAR UP TO 1988/89. EFFORTS ARE BEING MADE TO IDENTIFY ADDITIONAL SUPPLEMENTARY SITES BOTH IN THE URBAN AREAS AND IN THE NEW TOWNS TO ENSURE THAT THIS LEVEL OF PRODUCTION CAN BE AT LEAST MAINTAINED IN SUBSEQUENT YEARS. IT IS ALSO ANTICIPATED THAT THE VARIOUS ON-GOING SUB-REGIONAL STUDIES WILL IDENTIFY OTHER SUITABLE AREAS FOR LONG-TERM LARGE SCALE DEVELOPMENT.

* FORECAST LAND SUPPLY SHOULD BE SUFFICIENT TO

SUSTAIN PRODUCTION AT 10 000 FLATS A YEAR FOR BOTH HOME OWNERSHIP SCHEME AND PRIVATE SECTOR PARTICIPATION SCHEME DEVELOPMENT FROM 1984/85

* THERE SHOULD BE MORE THAN ADEQUATE LAND

SUPPLY FOR THE PRIVATE SECTOR TO CONTRIBUTE AN AVERAGE 25 000 FLATS A YEAR FOR THE NEXT FIVE YEARS WITH SUFFICIENT CAPACITY TO

INCREASE TO A MAXIMUM LEVEL OF 35 000 FLATS A YEAR SHOULD MARKET CONDITIONS IMPROVE.

/* FORECAST LAND