TNAG-0579-FCO40-712-Discussions-with-Sir-Murray-MacLehose--Governor-of-Hong-Kong-1976 — Page 119

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Housing "within the means of all" is a question of

standards, costs and rents on the one hand and incomes on the other.

The rents charged in the newest estates are not more than half of private sector rents and usually less, and I should add that to ensure this housing fulfils its social purpose this

degree of subsidisation will be maintained. These rents are within the means of most of those

eligible, but they are beyond the means of a minority. This is not the

case in the old estates whose rents are very much lower as also are

standards. I am sure we should not drop standards in the new estates and in fact should rather seek to raise them without of course reducing the numbers to be rehoused, I am equally convinced that housing must continue to be available within the means of all,

or a significant element in the social cohesion of Hong Kong will be lost. The course being followed by the Authority is to facilitate the movement from old to new estates of those able to pay the higher rents and thus

make room for those who are not. The slow raising of the exceptionally low rents

in the old estates which were static for so long, and still are only between a quarter and a seventh of comparable private rents is in line with the general aim of providing housing within the means of all. I say this because I believe the justice of slowly raising them is generally accepted, though it is certainly our intention that they should remain very low in comparison with private rents. As for new estates which will be occupied in the next few years, we hope that more stable contract prices will allow their initial rents to be stabilised at the present levels. Given that the Housing Authority caters for families with a wide range of incomes it seems sensible to fix rents for new estates at a level which avoids excessive subsidy for the majority of eligible families, since they can afford these levels. This means that special arrangements must be made for the minority who

cannot afford them but whose housing problem must be solved. The Authority's policy is framed to meet this problem, and the Authority will keep a close watch on it and do everything possible to house everybody within their means. The Government stands ready to play its part if necessary.

Home Ownership

Hon. Members may recall that in this year's budget speech the Financial Secretary announced the Government's intention of boosting

production by building an additional 30,000 flats for sale at an average

rate of 5,000 flats a year to provide additional accommodation for some 180,000 people. The additional sites have been found and the first instalment of 5,000 flats will be ready for sale in '79/80 and further

instalments will then follow each year. These flats are included in the

figures I have already given.