TNAG-0669-FCO40-818-Policy-on-housing-and-resettlement-in-Hong-Kong-1977 — Page 127

Copy of

Annex a to ACC (77)8

Speech by the Honourable the Financial Secretary

in Legislative Council on Wednesday, 5th January 1977

Sir,

I rise to move the motion standing in my name

in the Order Paner.

In November last the Government decided that the first phase of an initial building programme, designed to produce about 6,000 flats for sale, should be built by the Housing Authority on behalf of the Government. On 24th November last, the Finance Committee on this Council accepted the financial implications involved in building flats for sale as part of an overall scheme to promote home ownership among certain categories of persons, and specifically agreed to the introduction into this Council of a motion to establish a revolving fund to finance the construction of flats.

So this motion provides for the establishment of a fund to be known as the Home Ownership Fund. The intention is to credit the Fund with such appropriations from General Revenue as this Council may approve from time to time. When the lousing Authority has completed and costed their proposals for the initial 6,000 flats I shall invite Finance Committee to create a new expenditure subhead and appropriate the necessary funds either this year or next.

If and when made by this Council, the Resolution will authorise me to expend monies from the Fund to meet the full cost of providing flats for sale and I envisage that expenditure will cover such items as land and construction costs, as well as reimbursements to the Housing Authority for salaries, on-costs and other expenses properly attributable to the design, construction and sale of flats.

The full proceeds from the sale of flats will be credited to the Fund as income. Suitable arrangements for assisting would-be purchasers to acquire the are still being worked out, but I hope to be able to make a definitive statement as to the Government's intentions in the Budget Speech. I expect that the income accruing to the Fund will exceed total transfers into the Fund from General Revenue, as the selling price of the flats will include an element of interest on drawings on the Fund. As these excesses, if they arise, will be surplus to the requirements of the Fund there is a provision in the Resolution enabling me to transfer them from the Fund into General Revenue.

Dir, I beg to move.