XN000022-1986-10-29 — Page 31

WEDNESDAY, OCTOBER 29, 1986

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CALL FOR CONSISTENT AND REALISTIC RENT POLICY

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A CONSISTENT AND REALISTIC RENT POLICY HAS BEEN THE KEY TO THE SUCCESS OF HONG KONG'S PUBLIC HOUSING PROGRAMME, THE HON CHAN YING-LUN SAID IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

SPEAKING IN THE ADJOURNMENT DEBATE ON THE TWO HOUSING REPORTS, MR CHAN SAID IT WAS HIS SINCERE HOPE THAT THIS POLICY WOULD BE CONTINUED FOR THE BENEFIT OF PUBLIC HOUSING TENANTS.

HE SAID THAT SINCE PUBLICATION OF THE TWO REPORTS LAST MONTH THERE HAD BEEN CONCERN AMONG SOME TENANTS OVER RENT POLICY.

REVIEWING THE ACHIEVEMENTS OF PUBLIC HOUSING PROGRAMMES, HE SAID IT HAD BEEN REMARKABLE THAT ALL IMPROVEMENTS AT PUBLIC HOUSIG ESTATES WERE PROVIDED AT COSTS THAT TENANTS, MOST OF WHOM CAME FROM THE LOWER INCOME GROUP, COULD AFFORD.

HE SAID THE PRESENT RENT POLICY HAD PROVED TO BE PRACTICABLE AND ACCEPTABLE AND ITS CONTINUED APPLICATION WAS SUPPORTED BY THE DOMESTIC RENT POLICY REVIEW COMMITTEE.

HE NOTED THAT THE MEDIAN RENT-INCOME RATIO OF NOT MORE THAN 15 PER CENT FOR NEW ESTATES PROPOSED BY THE COMMITTEE HAD DRAWN OBJECTIONS FROM SOME PUBLIC HOUSING TENANTS.

AS CHAIRMAN OF THE COMMITTEE, MR CHAN TOOK THE OPPORTUNITY TO CLARIFY THE MATTER FOR TENANTS.

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+BASED ON DATA AVAILABLE, AM CONVINCED THAT RENTS SET ACCORDING TO THE 15 PER CENT GUIDELINES ARE WELL WITHIN THE AFFORDABILITY OF TENANTS, HE SAID.

FIGURES FOR THE PAST FEW YEARS SHOWED THAT THE MEDIAN RENT-INCOME RATIOS FOR NEW ESTATES WERE VERY CLOSE TO THE 15 PER CENT BENCHMARK.

HE SAID OF THOSE WHO HAD TO PAY MORE THAN 15 PER CENT, A SIGNIFICANT NUMBER WERE PUBLIC ASSISTANCE RECIPIENTS WHOSE RENTS WERE PAID BY THE SOCIAL WELFARE DEPARTMENT AND THERE WERE ALSO TENANTS WHO OPTED FOR LARGER ACCOMMODATION THAN THEY WERE BASICALLY ENTITLED TO.

HE ADDED THAT CHEAPER ACCOMMODATION IN OLDER ESTATES WAS AVAILABLE FOR THOSE WHO COULD NOT AFFORD THE RENTS CHARGED IN NEW ESTATES.

REFERRING TO PUBLIC COMMENT THAT THE 15 PER CENT GUIDELINE WAS TOO CLOSE TO THE LEVEL IN THE PRIVATE SECTOR, WHERE RENTS TOOK UP ABOUT 15 TO 18 PER CENT OF TENANTS INCOME, MR CHAN STRESSED THAT THE GUIDELINE ONLY REFERRED TO THE RENTS OF NEW ESTATES AT THE TIME THE TENANTS MOVED IN.

/HE SAID ...........