XN000022-1994-03-02 — Page 23

11

WEDNESDAY, MARCH 2, 1994

IN PRACTICE THEIR VALUE IN REAL TERMS HAD BEEN INCREASED.

"AS MY COLLEAGUE, THE SECRETARY FOR HEALTH AND WELFARE, POINTED OUT IN THIS CHAMBER ON 2 FEBRUARY THIS YEAR, THE STANDARD SOCIAL SECURITY RATE HAS INCREASED BY 14 TIMES OVER THE LAST TWO DECADES WHEREAS INFLATION, AS MEASURED BY THE CPIA), HAS INCREASED BY A SIX TIMES OVER THE SAME PERIOD."

MERE

HAD

THE MOST WORRYING FEATURES OF INFLATION, AND THE AREA THAT FOCUSED BEEN

ON FOR POSSIBLE SOLUTIONS, RESULT FROM HONG KONG'S SPECIAL ECONOMIC CONSTRAINTS:

PROPERTY PRICES ARE RISING TO INCREASINGLY UNCOMFORTABLE LEVELS BECAUSE OF ACUTE SHORTAGE OF LAND COMBINED WITH GROWING PROSPERITY AND THE UNDERSTANDABLE AMBITION OF FAMILIES TO OWN THEIR OWN HOMES.

HONG KONG'S WORKFORCE IS QUITE SIMPLY, TOO SMALL. FOR AN ECONOMY EXPANDING AT HONG KONG'S RATE INTO NEW MARKETS AND INDUSTRIES, THE SHORTAGE OF LABOUR INEVITABLY AGGRAVATES INFLATION PRESSURES.

SIR HAMISH ALSO OUTLINED THE PARTICULAR AFFECT HONG KONG'S SUPPLY OF LAND:

*

CIRCUMSTANCES WHICH

FIRST AND FOREMOST, THE SUPPLY OF SUITABLE BUILDING SITES WELL ALWAYS BE LIMITED BECAUSE OF HONG KONG'S SIZE AND ITS

GEOGRAPHY.

MAJOR SUPPLY

SECONDLY, BUILDINGS CANNOT BE ERECTED OVERNIGHT, CONSTRUCTION PROJECTS HAVE LONG LEAD TIMES, AND THUS CANNOT RESPOND QUICKLY, EVEN TO SHARP INCREASES IN DEMAND.

*

THIRDLY, CYCLES.

THE

PROPERTY MARKET IS SUBJECT ΤΟ MARKET CONDITIONS CAN CHANGE ABRUPTLY,

QUITE

*

AFTER

1997, IT WILL NO LONGER

SHARP

ΤΟ

FOURTHLY,

BE NECESSARY DISCUSS AND AGREE AN ANNUAL LAND PROGRAMME WITH THE LAND COMMISSION.

FOR

OF

THE

FINALLY, HONG KONG WILL OBTAIN 62 HECTARES OF NEW LAND RESIDENTIAL AND COMMERCIAL DEVELOPMENT AS A RESULT AIRPORT RAILWAY ALONE.

"SO EARLY AGREEMENT ON THE AIRPORT RAILWAY LAND AND FINANCING IS VITAL TO ENABLE US TO MAKE THESE NEW SITES AVAILABLE AS SPEEDILY AS POSSIBLE."

SIR HAMISH SAID LAND SUPPLY IN TERMS OF DIFFERENT THE PROPERTY MARKET WAS ALSO NEEDFD TO BE LOOKED AT.

SECTORS OF

OVER THE LAST 10 YEARS, COMMERCIAL RENTS HAVE RISEN BY 230%.

"IF HONG KONG IS TO MAINTAIN ITS POSITION AS THE REGION'S LEADING BUSINESS CENTRE, WE MUST BE ABLE TO OFFER THE NEW OFFICE SPACE

TO NEEDED

CORPORATIONS WISHING EITHER PRESENCE HERE OR TO EXPAND THEIR EXISTING OPERATIONS."

ACCOMMODATE

TO

ESTABLISH

A

/HE SAID