XN000022-1997-04-08 — Page 5

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Government statement on land supply for housing

In response to press enquiries relating to Hong Kong Government information contained in two reports produced by the Research and Library Services Division of the Legislative Council Secretariat, namely, "Land Supply in Hong Kong" and "Supply of Flats" both dated 3 April 1997, a Government spokesman today (Tuesday) said, "We would like to clarify that the information was supplied by the Government to the Legislative Council Secretariat to facilitate its research. The information should be read in context. We are afraid that the information has been quoted out of context and given incorrect interpretation in the press reports."

Referring to Appendix 20 of the report "Land Supply in Hong Kong" entitled "New Residential Land Supply from 1996 to 2005 (Net Area in Hectares)" (note), the spokesman said, "The information in the table is based on the draft 1996 Territory Development Department (TDD) Development Programmes which show new residential land to be formed by TDD in the forecast period on the basis of the secured funding situation in the department in September 1995.

"Under the Government's Resource Allocation System, the department's funding is secured for five years, to be rolled forward on an annual basis. This explains why the department's land formation target in 1996-97 to 1999-00 is considerably higher than in the following years. The land to be formed in 2000-01 to 2004-05 refers to the residual amounts to be formed under projects already funded. Land to be formed under new projects will be added into the Development Programmes once funding is secured."

"Moreover, the information does not include the supply of land through other means such as redevelopment, rezoning and intensification of development density," the spokesman added.

"The press reports have made the incorrect assumption that the information in the table represents the Government's Land Disposal Programme, which of course is different from the land formation programme. It would be incorrect to assume that the information in the table represents the full picture in the supply of land for housing. It follows that any interpretation and conclusion drawn from this incorrect assumption would be erroneous," the spokesman said.

"We would like to make it clear that as the Financial Secretary has said in the 1997 Budget Speech, the Government plan to release 327 hectares of land for public and 260 hectares for private housing over the next five years, which is an increase of 46 per cent over the previous five years.