TNAG-0669-FCO40-818-Policy-on-housing-and-resettlement-in-Hong-Kong-1977 — Page 104

AL

CONFIDENTIAL

XCC(76)85

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機密

(a) for the purpose of determining the capital employed

the Government's investment in terms of land should be excluded, partly because the Authority has no say: over grants or the valuation of land, and partly because the minimum rate of return in the context of this memorandum is intended to require the Authority to follow prudent financial policies. It has no meaning in an accounting sense. The rate of return, therefore, should be expressed as a percentage of that element of capital over which... the Authority can exercise control, that is to say, the value of buildings;

(b)

(c)

(d)

(e)

the minimum rate of return must not frustrate the basic objective of providing housing for lower- income groups in the community;

so as to allow for annual fluctuations the minimum rate of return would be fixed for a period of five „ years and would be judged against actual average performance within that period;

the minimum rate of return would be reviewed towards the end of each period and re-determined, if necessary, for the ensuing period; and

the Governor would determine the rate of return after consultation with the Housing Authority. This may require an amendment to the Housing Ordinance.

Implementation

21

Subject to Honourable Members' acceptance of the foregoing proposals it is proposed that the following course of action be taken:

(a)

(b)

the Financial Secretary will put the proposals to the Housing Authority on behalf of the Government;

subject to the Housing Authority's acceptance, and as soon as they have been developed in arithmetic terms, these proposals will be put to the Finance Committee of the Legislative Council.

C.S. 166

CONFIDENTIAL

機密