XN000022-1995-12-06 — Page 38

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Increase in production of Home Ownership Scheme flats

Following is a question by Dr the Hon David Li and a written reply by the Secretary for Housing, Mr Dominic S W Wong, in the Legislative Council today (Wednesday):

Question:

A significant but temporary rise in government expenditure on affordable public housing would fulfil the public's aspirations to have their own homes, stimulate the economy, and mitigate the unemployment problem. In this connection, will the Administration inform this Council whether consideration will be given to building more Home Ownership Scheme flats in the short run, whilst at the same time ensuring that the Government spending is kept within 20% of the Gross Domestic Product (GDP) in the long run?

Answer:

Mr President,

Need and affordability are the guiding principles in the provision of, and charging for, public housing. We agree that subsidised home ownership schemes play an important role in promoting home ownership, which in turn fosters a sense of belonging and contributes to social stability in Hong Kong.

Since the introduction of these schemes in 1978, we have been building an increasing proportion of such flats in relation to public rental flats, and the split is now about 50% of each.

We have already announced the target of building 175,000 flats between April 1995 and April 2001 through various subsidised home ownership schemes. We are on course to achieve this target. As a lead time of around five years is required from initial planning to physical completion of flats, it would be difficult to add significantly to this target in the short term.