XN000022-1983-09-27 — Page 6

TUESDAY, SEPTEMBER 27, 1983

5

$BILLIONS IN HOUSING PROJECTS INTO 1990'S

****

A SENIOR HOUSING OFFICIAL TODAY GAVE AN ASSURANCE THAT THE GOVERNMENT STILL ACCORDED VERY HIGH PRIORITY TO PUBLIC HOUSING EVEN AT THE PRESENT STAGE OF FINANCIAL STRINGENCY.

+FOR NEW PROJECTS, NUMEROUS SUITABLE SITES HAVE BEEN IDENTIFIED AND AGREED WHICH WILL TAKE THE PUBLIC HOUSING PROGRAMME WELL INTO THE 1990S,+ SAID MR DAVID LAN, DEPUTY DIRECTOR (ADMINISTRATION AND PLANNING).

HE TOLD A LUNCHEON MEETING OF THE ROTARY CLUB OF HONG KONG NORTH WEST THAT STARTING FROM 1985-86, ANNUAL PRODUCTION WOULD BE INCREASED TO A MINIMUM OF 40 000 FLATS.

+IN THE YEARS AHEAD, WELL OVER 150 000 PEOPLE WILL BENEFIT ANNUALLY FROM THE PUBLIC HOUSING PROGRAMME.

→THE CURRENT LEVEL OF CAPITAL EXPENDITURE ON PUBLIC HOUSING IS EXPECTED TO CONTINUE IN THE FORESEEABLE FUTURE.

+ IN 1983-84, THIS AMOUNTS TO $3.7 BILLION OR ONE-THIRD OF THE TOTAL GOVERNMENT CAPITAL PROGRAMME FEW GOVERNMENTS INVEST SO MUCH TO HOUSE THEIR PEOPLE.

+ IN THE LAST THREE MONTHS ALONE, BUILDING AND ENGINEER ING CONTRACTS TOTALLING $1 363 MILLION HAVE BEEN LET BY THE HOUSING AUTHORITY.

+AND ABOUT 130 000 FLATS ARE CONSTANTLY KEPT UNDER VARIOUS STAGES OF CONSTRUCTION AT A TOTAL CONTRACT VALUE OF WELL OVER $10 BILLION,+

ON PUBLIC HOUSING RENTS, MR LAN SAID THESE HAD BEEN MAINTAINED AT VERY LOW LEVELS BECAUSE OF HEAVY GOVERNMENT SUBSIDIES IN THE FORMS OF FREE LAND GRANTS AND LOANS ON CONCESSIONARY TERMS TO FINANCE CONSTRUCTION.

+ALTHOUGH SURPLUS IS GENERATED FROM THE AUTHORITY'S COMMERCIAL PROPERTIES AS THEY RECEIVE THE SAME GOVERNMENT SUBSIDIES AND ARE LET AT MARKET VALUES, THIS SURPLUS IS USED TO CROSS-SUBSIDISE DOMESTIC TENANTS.

+FOR SUCCESSIVE YEARS, THE DEFICIT INCURRED ON DOMESTIC FLATS HAS BEEN COVERED BY SUCH SURPLUS; FOR EXAMPLE IN THE LAST TWO FINANCIAL YEARS, $180 MILLION OF DEFICIT HAVE BEEN SO COVERED.+

ON THE PILOT SCHEME TO TRANSFER 4 880 RENTAL TRIDENT I FLATS TO THE HOME OWNERSHIP SCHEME IN 1984-85, MR LAN SAID THIS WAS A POSITIVE CHANGE IN LINE WITH THE PROMOTION OF HOME OWNERSHIP IN ALL ADVANCED COMMUNITIES.

+AS USUAL, THESE ADDITIONAL 4 880 FLATS WILL BE SOLD AT A SUBSIDY TO THE PUBLIC BY EXCLUDING LAND VALUE FROM THE FLAT PRICES.

/+ABOUT $750