XN000022-1985-08-05 — Page 2

MONDAY, AUGUST 5, 1985

COMMENTS SOUGHT ON HOUSING SUBSIDY GREEN PAPER

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THE HOUSING AUTHORITY TODAY (MONDAY) PUBLISHED A GREEN PAPER WHICH SETS OUT FOR PUBLIC DISCUSSION PROPOSALS ON THE ISSUE OF HOUSING SUBSIDY TO TENANTS OF PUBLIC HOUSING.

A SPECIAL COMMITTEE, THE COMMITTEE ON HOUSING SUBSIDY TO TENANTS OF PUBLIC HOUSING, WAS SET UP IN LAST OCTOBER. CHAIRED BY MR F.K. HU, THE COMMITTEE CONSISTS MAINLY OF UNOFFICIAL MEMBERS OF THE HOUSING AUTHORITY. IT MET SIX TIMES AND HAS SUBMITTED AN INTERIM REPORT TO THE AUTHORITY AS A RESULT OF ITS DELIBERATIONS.

THE HOUSING AUTHORITY GENERALLY ENDORSED THE APPROACH OF THE COMMITTEE BUT HAS NOT YET ADOPTED AS POLICY THE SUGGESTIONS CONTAINED IN THE GREEN PAPER.

A SPOKESMAN OF THE AUTHORITY SAID THAT THE AUTHORITY WELCOMES THE PUBLIC TO EXPRESS THEIR VIEWS ON THE SUGGESTIONS MADE BY THE COMMITTEE, AND A DECISION WILL BE MADE IN THE LIGHT OF COMMENTS MADE BY THE PUBLIC.

THE PERIOD OF CONSULTATION IS TENTATIVELY SET FOR THREE MONTHS ENDING OCTOBER 31. HOWEVER, THE SPOKESMAN SAYS THAT THE CONSULTATION PERIOD CAN BE EXTENDED IF NECESSARY.

PUBLIC HOUSING RENTS ARE SUBSTANTIALLY BELOW MARKET LEVELS AND THIS HAS BEEN MADE POSSIBLE WITH VERY HEAVY GOVERNMENT SUBSIDIES. THE GOVERNMENT PROVIDES LAND FREE OF CHARGE AND LENDS MONEY ON SPECIAL CONCESSIONARY TERMS TO THE HOUSING AUTHORITY FOR THE DEVELOPMENT OF PUBLIC RENTAL ESTATES.

OVER THE YEARS, THE GOVERNMENT HAS MADE AVAILABLE OVER $22 000 MILLION TO THE HOUSING AUTHORITY TO PROVIDE PUBLIC HOUSING FOR 2.4 MILLION HONG KONG PEOPLE.

ON THE OTHER HAND, STATISTICS SHOW THAT A CONSIDERABLE NUMBER OF LONG-TIME PUBLIC HOUSING TENANTS HAVE INCOME WELL ABOVE THE WAITING LIST INCOME LIMIT. PUBLIC HOUSING RENT LEVELS HAVE NEITHER KEPT PACE WITH INFLATION NOR HAVE THEY BEEN KEPT IN LINE WITH THE REAL INCOME GROWTH OF PUBLIC HOUSING TENANTS.

WHILE PROPOSING THAT TENANTS WHO HAVE IMPROVED THEIR FINANCIAL SITUATION OVER THE YEARS SHOULD NOT BE EVICTED, THE COMMITTEE RECOGNISED IT WOULD BE DIFFICULT TO DEFINE THE TERM +WELL-OFF TENANTS+.

IT CONCLUDES THAT PUBLIC HOUSING SUBSIDY SHOULD BE REDUCED FOR THOSE TENANTS WHO ARE NO LONGER IN NEED OF IT, AND THOSE WHO CAN AFFORD TO PAY A HIGHER RENT SHOULD BE EXPECTED TO DO SO, SO THAT HEAVY HOUSING SUBSIDY SHOULD ONLY BE GIVEN TO THOSE MOST

IN NEED.

/THE COMMITTE