Estimates-1960 — Page 216

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General

PART III - EXPLANATORY NOTES ON APPENDICES I & II

APPENDIX I — DEVELOPMENT LOAN FUND

Appendix I contains all the Projects previously shown under the Development Fund and Local Loans Fund, respectively.

Housing Loans

Housing Authority:

The Housing Authority's second scheme, Sai Wan Chuen (Cadogan Street Scheme) containing 636 flats to accommodate about 4,200 people has been completed and is now being occupied. Site formation for the third scheme at So Uk is continuing.

To simplify the accounting arrangements between Government and the Housing Authority, all previous loan allocations have been consolidated into one account on an overdraft basis up to a maximum balance of $91.5 millions.

Hong Kong Housing Society:

The Hong Kong Housing Society completed the Hung Hom, Sheung Li Uk Extension, and Tsuen Wan Schemes during 1958/59; the Healthy Village and Kwun Tong Schemes should be completed during 1959/60. Appendix I now also includes allocations approved for the Kai Tak and Shau Kei Wan Schemes both of which break new ground for the Society. The Kai Tak project is a pilot scheme to provide accommodation for families with incomes below $300 per month. This is an attempt to provide something on the lines of Resettlement accommodation, but providing 35 square feet per person, glazed windows, individual doors and communal cooking, washing and toilet arrangements of a better type. The Shau Kei Wan Scheme will contain a proportion of flats allocated to the staff of particular employers who bear the entire cost of construction of those flats by way of interest-free loans to the Society. As Government will be participating in this scheme as an employer to provide 1,000 flats for the Society to let to non- pensionable officers not entitled to take part in the Local Government Officers' Co-operative Building Schemes, two distinct loans have been approved for the Shau Kei Wan project.

Local Government Officers' Housing Co-operatives:

At the end of 1952 Government commenced to make funds available to local officers on the pensionable establishment for financing the construction of blocks of flats. Land is made available by private treaty at half the upset price to officers who are prepared to form themselves into housing co-operatives. Building costs are then advanced. Interest commences to be payable at 34% per annum on completion of the building and the repayment of principal is spread over twenty years.

By the end of March 1959 11 schemes will have been completed, including 6 in 1958/59. Some 113 co-operatives have been formed and loans totalling $69 millions have been allocated to them. It is hoped that during 1959/60 about 70 schemes will be completed.

Educational Loans

Interest-free loans to non-profit making organizations for the construction of schools have been granted by Government for some time. Loans granted prior to 1957/58 are mainly repayable over 10 years. From 1957/58 the repayment period was extended to 11 years. That the loan plus any Government subsidy must not exceed 80% of the total cost of the project and that the borrower is an incorporated non-profit making body are two general rules which are applied in the consideration of any application for a school loan.

Reclamations

During 1958/59 an additional seven acres were formed, bringing the area reclaimed in Kwun Tong Reclamation, Stages I & II to a total of 70 acres. The slower rate of progress is partly accounted for by the reclamation having reached deeper water.

APPENDIX II –– PUBLIC WORKS PROGRAMME

The Appendix to the Report of the Public Works Subcommittee of Finance Committee is reproduced with the addition of items subsequently approved by Finance Committee.