XN000022-1995-06-21 — Page 21

- 3-

Sandwich Class Housing

As Members well remember, in mid-1993, the Government decided to provide housing at reasonable prices for the sandwich class, and asked the Housing Society to take on this new role, which, it readily accepted. It has indeed undertaken the Sandwich Class Housing Loan Scheme with $2 billion loan capital from the Government and also as the implementation agent of the main scheme, it is starting to build various flats for the sandwich class. In doing all these, again the Housing Society has to dip into its own reserves and even borrow from banks and financial institutions in order to finance the construction of all these flats in order to fulfil, what I would call, a public duty.

Sale prices of Sandwich class housing flats are of course subject to the approval of the Housing Branch. And given the fluctuation in property prices, it is difficult, at this juncture to forecast the type of surplus which the Housing Society may make after completing and selling all the 20,000 units over the next few years. However, as it is a non-profit-making organisation, the Housing Society will be closely monitored by the Housing Branch and we will certainly decide how it may utilised that surplus on housing development for the benefit of the community in future.

Executive Committee

I

Mr President, I have spoken at some length to outline the very positive growth and substantial contributions of the Housing Society. Let me now turn to the subject of the Executive Committee mentioned by some Honourable Members. Ever since the Housing Society's establishment in 1948, members of the Executive Committee comprise people with various types of expertise, including a few serving or retired civil servants in their personal capacity. They all serve on a voluntary basis, making useful contribution to housing development for the community. Lat month, the Housing Society, out of its own accord and having consulted the Administration, has taken the positive step of formally appointing four senior government officials, namely, myself, the Secretary for Planning. Environment and Lands, the Director of Lands and the Director of Planning, as ex-officio members of its Executive Committee. I am sure that this recent initiative to enlarge the Executive Committee demonstrates the openness with which the Housing Society has decided to handle its affairs, and underlines its recognition of the public interest. I would add also that this gives the Government a greater opportunity to monitor the activities of the Housing Society. I understand also that the Housing Society is currently studying how the general membership base of the society can be further enlarged. Again this initiative ties in well with the Honourable Fung Kin-kee's suggestion. I am sure the Housing Society will take this thought very seriously.