XN000022-1997-03-12 — Page 43

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The Financial Secretary, Mr Donald Tsang, said that over the past five years, in partnership with the Housing Authority, spending on housing had increased by 34 per

cent in real terms.

"However, demand for housing still outstrips supply," Mr Tsang said in his annual Budget address today (Wednesday).

"The only really effective long-term solution is for the Government to produce more land for residential development.

"But I recognise we must try to do even more, so I have decided to chair a special task force to look at land supply and its impact on infrastructure and housing development.

"The relevant policy secretaries will join me in this new initiative. We will start our work shortly."

Mr Tsang said that over the next five years, 327 hectares of land would be released for public housing while another 260 hectares would be released for private housing (compared to 257 and 145 respectively over the past five years).

Mr Tsang said Hong Kong had made remarkable progress in providing adequate shelter for the community, with 47 per cent of households living in public housing.

"As standards of living have risen, more and more people aspire to owning their own home. We will step up our efforts to help them achieve this ambition," he said.

"Over the next two years, as a result of our recent injection of $1.38 billion into the Housing Society's Sandwich Class Housing Loan Scheme, we will be able to provide loans to a further 3,000 families."

Mr Tsang said that until additional land was available, there would continue to be pressure on property prices.

He said the Government was constantly reviewing market conditions and was already taking action against speculators using companies to buy flats and resell them shortly afterwards.

"The Inland Revenue Department is tackling this problem vigorously by charging Profits Tax on any gains from these trading-type transactions," he said.