XN000022-1986-10-29 — Page 35

WEDNESDAY, OCTOBER 29, 1986

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MR HUI SAID HE FELT THAT THE COMMITTEE ON HOUSING SUBSIDY HAD NOT ONLY NEGLECTED THE GREATER EXPENDITURE REQUIRED BY WORKING MEMBERS OF THE FAMILY, BUT ALSO IGNORED THE FACT THAT WORKING CHILDREN DID NOT TAKE HOME THE FULL SHARE OF THEIR MONTHLY EARNINGS.

THE HOUSING SUBSIDY PROPOSAL WOULD THEREFORE DISCOURAGE YOUNG PEOPLE FROM LIVING WITH THEIR FAMILIES, AND WOULD LEAD TO THE FORMATION OF NUCLEAR FAMILIES AS WELL AS AN INCREASE IN THE NUMBER OF WAITING LIST APPLICANTS FOR PUBLIC HOUSING.

IT WOULD ALSO DO INJUSTICE TO THE BULK OF LOW-INCOME TENANTS WHO WERE THE FIRST TO BE HIT DURING ECONOMIC RECESSIONS, HE ADDED.

HE RECOMMENDED THAT 60 PER CENT OF THE INCOME OF OTHER FAMILY MEMBERS BE INCLUDED IN THE CALCULATION OF HOUSING SUBSIDY, AS THIS WOULD SPARE THE MAJORITY OF TENANTS THE TROUBLE OF DECLARING THEIR INCOME ONCE EVERY TWO YEARS.

MR HUI ALSO STRESSED THAT HONG KONG'S SPECTACULAR ACHIEVEMENT IN PROVIDING LOW-COST HOUSING TO ALMOST HALF THE POPULATION DURING THE PAST 33 YEARS SHOULD BE MAINTAINED, IF ONLY AT THE EXPENSE OF A SLIGHTLY REDUCED REVENUE FOR THE HOUSING AUTHORITY.

+THE HOUSING AUTHORITY SHOULD EXPLORE INCOME GENERATING AVENUES SUCH AS CUTTING COST THROUGH IMPROVED MANAGEMENT PRODUCING MORE HOME OWNERSHIP UNITS, EVICTING ABSENTEE TENANTS AND SELLING FLATS TO EXISTING OCCUPANTS, HE URGED.

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MR HUI NOTED THAT PUBLIC HOUSING TENANTS WERE CONCERNED ABOUT THE FACTORS CONSTITUTING HOUSING ESTATE, VALUE, THE METHODOLOGY OF CALCULATING THE 15 PER CENT RENT-INCOME RATIO AND THE CRITERIA FOR EFFECTING A RENT INCREASE.

HE CALLED ON THE DOMESTIC RENT POLICY REVIEW COMMITTEE TO REVIEW AND RESHUFFLE ITS STATISTICS BY PITCHING THE RENT-INCOME RATIO AT THE MAXIMUM POINT OF 15 PER CENT OF THE MEDIAN INCOME ALLOWING TENANTS WHOSE RENT-INCOME RATIO EXCEEDING 15 PER CENT TO APPLY FOR RENT REDUCTION.

+THE SUGGESTION MEASURES WOULD PROVE MORE PRACTICABLE THAN TO EXERCISE RIGID FORMULAE IN DOMESTIC RENT AND HOUSING SUBSIDY REVIEWS,+ HE SAID.

+ THE TWO REPORTS IN QUESTION ALSO SERVE AS A WARNING SIGNAL THAT A COMPREHENSIVE REVIEW ON GOVERNMENT'S OVERALL HOUSING POLICY IS LONG OVERDUE, + HE ADDED.

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