TNAG-0270-FCO40-306-Policy-on-housing-and-resettlement-in-Hong-Kong-1971 — Page 58

2600224

C.5. 84

RESTRICTED

· 13 -

XCR(70)303

K.

45

A Management Experiment at Fak Tin Resettlement Estate (Annex D)

Since the proposed management experiment depends upon the use of an improved design standard for the 14 blocks at Fak Tin Estate still to be constructed and this in turn depends upon the Board's recommendation discussed at paragraphs 33 and 34 above, the Urban Council and the Housing Authority have not yet been consulted on this recommendation. It is expected, however, that they will raise no objections to the experiment going ahead, not least because the Unofficial Members of the Urban Council, when discussing the Board's Report, have already recorded their support for the unification of all housing management in one department.

46

Apart from a small increase in the overall construction costs of the new blocks (see paragraph 34) the main financial effect of this recom- mendation will be an increase, as estimated by the Board, of some $130,000 - 170,000 in annual recurrent management costs, which would be covered by the rents payable by the tenants. Since, in any case, the Resettlement Department is already endeavouring, on the advice of a seconded Housing Manager, to improve management standards on the lines of Government Low-cost Housing estates, it may be expected that this additional recurrent cost will be incurred sooner or later, regardless of this suggested experiment.

47

One of the main problems associated with this management experiment was thought to be the security implications of entrusting the management of Resettlement accommodation to the Housing Authority out- side the ambit of the Resettlement Ordinance. Hitherto the stringent manage- ment provisions of this Crdinance have been judged necessary in coping with settlers who regard their tenancies as permanent and granted as of right. However, with new accommodation and new management, it is possible that this original approach may no longer be valid. The Commissioner for Housing himself lays very great stress on the importance of the new approach based on the normal tenancy agreements administered by the Housing Authority.

48

In all these circumstances it is suggested that the Management Experiment as proposed by the Board, should be endorsed assuming that the new design standards recommended at paragraph 35 are also approved, particularly since it offers every hope of improvement in the standard of management and environmental control. Further progress on the transfer of management will depend on the Board's assessment of the experiment but, meantime, it is recommended that, both as regards the future of Resettle- ment itself and as regards the relationship of the Housing Authority to this policy, there should be no further changes of policy whether in this context or the context of local Government reform.

Composition of the Housing Board

49

This concludes the review of the Housing Board's own proposals. However, Honourable Members may also wish to be aware in this context of a further comment by the Unofficial Members of the Urban Council on the Housing Board's report, namely that the Housing Board should include Un- official Members of the Urban Council.

RESTRICTED