XN000022-1984-04-25 — Page 16

WEDNESDAY, APRIL 25, 1984

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+HOWEVER, SINCE RENTS FOR THE OLDER ESTATES ARE STILL AT A VERY LOW LEVEL, WE CONTINUE TO OPERATE AT A DEFICIT. MOREOVER, THE INFLATION RATE IN RECENT YEARS HAS MADE IT DIFFICULT FOR THE AUTHORITY TO KEEP PACE WITH RISING RECURRENT COSTS AND A SUBSTANTIAL REDUCTION TO THIS DEFICIT HAS NOT BEEN POSSIBLE.

+A MAJOR PROBLEM REMAINS THE HEAVY LEVEL OF SUBSIDY FOR THE OLDEST HOUSING BLOCKS, AS RENT INCREASES MUST BE A GRADUAL PROCESS AND WE NEED TO HAVE REGARD TO GENERAL ECONOMIC CIRCUMSTANCES AS WELL AS TENANTS' ABILITY TO PAY.

+THE REDEVELOPMENT PROGRAMME OF THESE MARK 1-1 BLOCKS, WHICH IS GATHERING MORE TIME, WILL NOT ONLY SUBSTANTIALLY IMPROVE THE LIVING CONDITIONS FOR THE 200 000 TENANTS IN THE REMAINING BLOCKS. BUT WILL ALSO SERVE TO REDUCE THE NUMBER OF OLD DEFICIT- INCURRING ESTATES AND INCREASE THE NUMBER OF NEW ESTATES WHICH ARE ABLE TO PAY THEIR WAY.+

QUOTA TRANSFER SUBJECT TO MORE RULES

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A SUGGESTION THAT SOME QUOTA HOLDERS WERE WHOLLY ENGAGED IN +QUOTA FARMING+ WAS REFUTED TODAY BY THE SECRETARY FOR TRADE AND INDUSTRY, THE HON JOHN YAXLEY.

HE DID NOT BELIEVE THIS WAS POSSIBLE, SINCE THERE WAS AN ALLOCATION RULE WHICH PENALISED PERSISTENT TEMPORARY TRANSFERORS WHO TRANSFERRED OUT 50 PER CENT OR MORE OF THEIR TOTAL ALLOCATION IN TWO CONSECUTIVE YEARS AND THE RULE HAD BEEN IN FORCE FOR SOME TIME, MR YAXLEY SAID IN THE LEGISLATIVE COUNCIL TODAY.

MR YAXLEY WAS REPLYING TO A CALL BY THE HON PETER C. WONG FOR +A FRESH LOOK+ AT THE TEXTILE QUOTA ALLOCATION SYSTEM.

+EVEN SO, MR YAXLEY SAID, I WOULD POINT OUT THAT OF THE 14 CHANGES TO THE TEXTILES EXPORT CONTROL SYSTEM INTRODUCED AFTER THE 1983 REVIEW, FOUR CHANGES APPLY SPECIFICALLY TO THE TRANSFER RULES WHILE ANOTHER FOUR INDIRECTLY AFFECT THOSE WHO HAVE TRANSFERRED QUOTAS.

+FURTHERMORE, THESE CHANGES ONLY TAKE EFFECT FROM THE CURRENT YEAR, AND ONLY TIME WILL SHOW THEIR EFFECTIVENESS. NEVERTHELESS, THESE CHANGES CLEARLY INDICATE THAT THERE

IS NO COMPLACENCY IN THIS REGARD, BUT WE MUST TAKE CARE NOT TO THROW THE BABY OUT WITH THE BATH WATER.+

MR YAXLEY SAID THAT THE NEED FOR TEXTILE EXPORT QUOTAS WAS NOT OF HONG KONG'S CHOOSING.

/+TE LUCH