XN000022-1995-06-21 — Page 20

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Rents and prices

At present, most of the rent collected from the Housing Society's stock of rental units goes towards the payment of rates, management cost, maintenance and repair, and cross-subsidisation of flats for elderly persons and in rural areas. In most estates, the Housing Society also provides space for voluntary agencies at concessionary rents.

As regards flats for sale, I must point out that prices have regard to the affordability of eligible households and are subject to the approval of the Housing Branch. Normally they are fixed at about 60% of market price.

The Administration is of the opinion that the Housing Society's rental units and flats for sale are generally satisfactory in terms of rent, price and quality.

Regarding the soiled pipe problem of Kwun Tong Garden; mentioned by the Hon Szeto Wah, I understand that the Housing Society is putting out tender to replace all the soiled pipes concerned. Like every organisation there must be individual cases which take time to resolve and we should not nail an organisation on this basis.

Redevelopment

Contrary to some misconceptions, the Housing Society has also made a substantial contribution towards urban renewal. Here, I thank the Honourable Edward Ho and Mr James To, for reaffirming this point. The Housing Society initiated the Urban Improvement Scheme as early as 1974 in order to speed up the redevelopment of urban slums. This is a mammoth task. Not only has the Housing Society to pay full market premium on land to the Government, but it also has to rehouse and compensate affected clearees. In certain cases, it is required to provide open space and community facilities. I am glad to report, so far, it has successfully completed 26 urban improvement projects. This is a very good record, Mr President, despite the obstacles faced. The Housing Society is now proceeding with the Ma Tau Kok Comprehensive Development Area project, on which it expects to spend $3.2 billion of its own funds to produce 890 residential units for sale and other commercial premises.

We must not forget that as a result of substantial changes in both the social and economic environment of Hong Kong in recent years, such as higher land costs, lower development density, and the demand for better rehousing and higher compensation by clearees, the task of urban renewal is becoming increasingly difficult. The Housing Society is now reviewing the situation with the Government so as to determine how the two Comprehensive Development Areas in Tsuen Wan and Kennedy Town can best be taken forward. My colleague, the Secretary for Planning, Environment and Lands, is now working out the overall strategies to facilitate and expedite urban renewal, taking into account all the problems associated with it before proceeding with public consultation in the near future on the way ahead. Meanwhile, I would stress that the Housing Society will carry on its urban improvement activities.

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