XN000022-1994-06-09 — Page 8

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THURSDAY, JUNE 9, 1994

GOVERNOR:

I DON'T KNOW WHETHER I AM A BULL OR NOT BUT I CERTAINLY DON'T THINK THAT IN DEALING WITH PROPERTY PRICES THAT IS THE MOST SENSIBLE OR EFFECTIVE ANIMAL TO LET LOOSE IN A CHINA SHOP. I THINK ONE HAS TO BEHAVE A LITTLE MORE ADROITLY AND SENSITIVELY THAN THAT INDEED, A GOOD DEAL MORE ADROITLY AND SENSITIVELY THAN THAT.

I WANT TO EMPHASISE AT THE OUTSET OF MY RESPONSE WHAT I SAID EARLIER, THAT I DO THINK WE NEED TO TAKE ACCOUNT, IN FRAMING OUR PROPOSALS, OF SOME OF THE GENERAL FACTORS WHICH THE SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS MENTIONED YESTERDAY, INCLUDING THE IMPACT ON OUR MARKET AND THE IMPACT ON OUR PROPERTY

MARKET OF POSSIBLE DEVELOPMENTS IN THE REGIONAL ECONOMY. NOBODY IS GOING TO THANK THE GOVERNMENT OF HONG KONG IF WE APPEARED TO BE TAKING MEASURES WHICH IN COMBINATION WITH OTHER THINGS HAPPENING BEYOND OUR CONTROL, PRODUCE A REAL AND SUBSTANTIAL SLIDE IN PROPERTY PRICES. ALL THOSE WHO ARE BUYING THEIR PROPERTY, INCLUDING MANY OF THE HONOURABLE MEMBER'S CONSTITUENTS, WOULD NOT THANK HIM OR US FOR THAT. SO WE HAVE ΤΟ BEHAVE, IN MY VIEW, EXTREMELY SENSITIVELY WHILE DOING THINGS THAT ARE EFFECTIVE. AND IF THE PROPOSALS THAT WE HAVE PUT FORWARD ARE NOT EFFECTIVE, THEN WE WILL HAVE TO DO MORE, AND MORE INCLUDE LOOKING AT OPTIONS LIKE PUNITIVE RATING OF VACANT PROPERTY AND OTHER TIGHT MEASURES AS WELL, INCLUDING THE USE OF STAMP DUTY. WE HAVE TO BE PREPARED TO DO THOSE THINGS IF THIS SET OF PROPOSALS DOES NOT WORK.

TAX

AT THE OUTSET, PEOPLE SAID THAT WR SHOULD

ADDRESS TWO ISSUES. THEY SAID WE SHOULD ADDRESS THE QUESTION OF SPECULATION AND I THINK WE HAVE DONE THAT IN A REASONABLY SENSIBLE WAY IN THIS SET OF PROPOSALS WITH WHAT WE HAVE SUGGESTED ON THE CONSENT SCHEME. AND I HOPE, AS Ι SAID EARLIER, THAT PROPERTY DEVELOPERS WILL TAKE OUR ADVICE AND FOLLOW WHAT WE HAVE SUGGESTED WHERE THE CONSENT SCHEME ISN'T INVOLVED.

SECONDLY,

BY BRINGING ON-STREAM MORE LAND SUPPLY AND OF COURSE WE WILL BE TALKING TO THE LAND COMMISSION ABOUT THAT AND I HOPE THAT WE WILL BE ABLE TO PROCEED WITH THE SAME DEGREE OF CO-OPERATION WHICH WE HAVE MANAGED IN THE LAND COMMISSION IN PAST YEARS. WE HAVE ALSO GOT TO TAKE ACCOUNT OF THE ADDITIONAL FAVOURABLE IMPACT ON THE HOUSING SCENE IF WE CAN GO MUCH FASTER IN REDEVELOPMENT AND MORE SENSIBLY IN REDEVELOPMENT. SO THERE IS A GREAT DEAL WHICH WILL MAKE AN IMPACT ON THE PROBLEM BUT AT THE END OF THE DAY, I THINK WE WOULD BE UNWISE TO SET OURSELVES PRECISE TARGETS IN TERMS OF PRICES. THAT'S NOT FEEBLE, I THINK THAT IS SENSIBLE. WE WANT TO ENSURE THAT WE CAN MAKE HOUSING OR HOME OWNERSHIP

AS AVAILABLE TO MANY AS POSSIBLE IN HONG KONG, WHILE ALSO GIVING OUR EXCELLENT HOUSING AUTHORITY THE RESOURCES TO DO ITS IMPORTANT JOB TOO.

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MR ALBERT CHAN:

MR GOVERNOR, YOU ARE THE LEADER, YOU ARE THE HEAD OF THE EXECUTIVE

HONG KONG, NOW, THE TOP 10% TO 20% HOUSEHOLDS IN TERMS OF INCOME, AND YET THEY ARE UNABLE TO AFFORD A

WOULD YOU FEEL ASHAMED OF THAT? BECAUSE EVEN THOSE PROPLE ENJOYING THE TOP 10% TO 20% OF INCOME, THEY STILL ARE UNABLE TO AFFORD A 500 SQ FT. WOULD YOU FEEL SHAMEFUL ABOUT THAT?

FLAT.

/GOVERNOR: