Estimates-1963 — Page 253

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PART III - EXPLANATORY NOTES ON APPENDICES I— III

APPENDICES I AND II — DEVELOPMENT LOAN FUND

This year, there are two Appendices relating to the Development Loan Fund as follows:

Appendix I

This Appendix comprises a financial statement of approved loans and projects, including estimated issues and repayments during 1962-63.

Under housing loans, the Housing Authority's revolving fund allocation remains as in the previous year at $156,000,000.

No new projects are included in respect of the Hong Kong Housing Society. Adjustments in allocations for certain projects have been made, however, following revised estimates of cost, which have resulted in a net increase of $7,184,600 in the overall allocation to the Society which now totals $96,236,451.

The Local Government Officers Co-operative Schemes continue to progress well. 112 schemes comprising 2,442 flats should be completed by 31st March, 1962, and a further 33 schemes (495 flats) during 1962-63. Loans for schemes for which sites were ear-marked after 12th August, 1960, bear interest at 5% per annum.

The loan of $10 millions to the Hong Kong Settlers Corporation is designed to enable the Corporation to rehouse its tenants who were previously living in cottage areas which have had to be cleared for development, and to provide low cost housing generally.

Educational loans are granted to incorporated non-profit making bodies for the construction of schools or extensions to existing schools. The general rule is that the loan plus any Government capital subsidy should not exceed 80% of the total cost of a project. These loans are either interest-free and repayable over 11 years, or bear interest at 34% and are repayable over 21 years.

Fisheries loans are intended for owners of suitable mid and distant waters fishing junks for the purpose of mechanization or improvement of existing vessels, for the construction or purchase of new vessels, and for the purchase and installation of navigational and fishing aids. This scheme was started in early 1960 with an initial allocation of $2,000,000 and, in view of successful experience of its operation, the alloca- tion was increased during 1961-62 to $5,000,000.

Appendix II

This is a new Appendix and shows the estimated financial position of the Fund together with

a summary of estimated receipts and payments for 1961-62 and 1962-63.

APPENDIX III - PUBLIC WORKS PROGRAMME

The Appendix to the Report of the Public Works Sub-Committee of Finance Committee is reproduced at Appendix III with the addition of items subsequently approved.