XN000022-1985-12-18 — Page 4

WEDNESDAY, DECEMBER 18, 1985

RENT NOT AFFECTED BY REDEVELOPMENT PROGRAMME

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THE ACTING SECRETARY FOR HOUSING, THE HON FRED PANG YUK-LING TODAY ASSURED PUBLIC HOUSING TENANTS THAT THE EXTENDED REDEVELOPME PROGRAMME FOR THE 26 HOUSING BLOCKS WOULD NOT ADVERSELY AFFECT RENT LEVELS.

SPEAKING AT THE ADJOURNMENT DEBATE ON THE DEVELOPMENT PROGRAMME IN THE LEGISLATIVE COUNCIL, HE SAID REDEVELOPMENT OF THE 26 BLOCKS WOULD COST ABOUT $800 MILLION TO BE SPREAD OVER A NUMBER OF YEARS.

ANOTHER $400 MILLION, HE SAID, HAD BEEN ESTIMATED FOR DEVELOPING NEW SUPPLEMENTARY SITES SUCH AS CHUK YUEN, SHUN TIN, SHAM SHUI PO AND SHEK LEI.

+THE COSTS OF THIS PROGRAMME WILL BE FUNDED UNDER THE CAPITAL EXPENDITURE BUDGET THROUGH THE DEVELOPMENT LOAN FUND, MR PANG SAI

HE ADDED THAT ANY PRODUCTION ARISING FROM THE PROGRAMME WOULD BE ADDITIONAL TO THE CURRENT PRODUCTION TARGETS AND WOULD HAVE NO ADVERSE EFFECT AT ALL ON THE CURRENT HOUSING PROGRAMME.

+ INDEED,+ HE SAID, FINANCIAL PROVISIONS OF $35 MILLION AND MILLION HAVE BEEN MADE UNDER THE CAPITAL BUDGET FOR THIS AND THE NEXT FINANCIAL YEARS,+

MR PANG EXPLAINED THAT RENTS FOR NEW PUBLIC HOUSING FLATS WERE DETERMINED BY COMPARING RENTS IN COMPARABLE EXISTING ESTATES. HAVING REGARD TO FACTORS SUCH AS ESTATE VALUE AND LOCATION, TENANTS' AFFORDABILITY AND RATES.

+REVIEW OF RENTS FOR EXISTING FLATS TAKE ACCOUNT OF GENERAL INFLATION, RUNNING COSTS, PREVAILING RATES AND TENANTS' AFFORDABILITY. THEREFORE, RENTS BEAR NO RELATION TO BUILDING COSTS, HE SAID.

HE ALSO SAID THAT LIKE ALL PUBLIC CONSTRUCTION, HOUSING WAS EXEMPT FROM THE BUILDING ORDINANCE.

PUBLIC

BUT THE REQUIREMENTS OF THE ORDINANCE WERE FOLLOWED, PARTICULARLY IN RESPECT OF CONCRETE WORK, FOR PUBLIC HOUSING CONSTRUCTION, HE SAID.

+THE HOUSING DEPARTMENT USES A CODE OF PRACTICE MORE RIGOROUS THAN THAT REQUIRED BY THE BUILDING ORDINANCE AND THIS CODE IS EMBODIED IN ITS CONTRACT SPECIFICATION, HE SAID.

MR PANG STRESSED THAT IN THE FINAL ANALYSIS, IT WAS SUPERVISION RATHER THAN REGULATION BY THE ORDINANCE THAT MATTERED AS FAR AS QUALITY CONTROL WAS CONCERNED.

/+THE BLOCK.