TNAG-0669-FCO40-818-Policy-on-housing-and-resettlement-in-Hong-Kong-1977 — Page 96

C.S. 166

10

CONFIDENTIAL

(i)

(ii)

(iii)

(iv)

- 5

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XCC(77)11

utilised loans from the Development Loan Fund (prior to 1st April 1976);

valuation of estates built by Government; cumulative interest due on Development Loan Fund borrowings after 31st March 1976; and the re-invested cumulative return on the Hong Kong Government's contribution to the end of the previous year.

Initially it is proposed that the rate of return should be in the region of 2%. This may appear to be low but since the rate is based on a purely financial return, it does not take into account social and economic returns which are difficult or impossible to quantify, but which are very real. Nevertheless a rate of this sort will provide a very useful indicator of the Housing Authority's financial performance and trends year by year.

11

It is intended that the proposals contained in this memorandum should apply to the Authority's housing estates comprising rented accom- modation, together with facilities provided as an integral part of those estates. Separate arrangements would apply in respect of any other developments, such as the Home Ownership Scheme, possibly joint development ventures (e.g. with the MTRC), development undertaken by the Authority for Government (e.g. district community facilities) and development not an integral part of housing estates.

Advice sought

12

Honourable Members will be asked to advise:

(a) whether they accept the proposals contained in this

memorandum, subject to the approval of the financial implications by the Finance Committee of the Legislative Council; and

(b) whether the proposals contained in this memorandum

should be put to the Housing Authority.

(The Secretary for Housing (Mr I. M. LIGHTBODY), the Commissioner of Rating and Valuation (Mr R. A. FRY), the Principal Assistant Financial Secretary (Mr A. T. ARMSTRONG-WRIGHT) and the Chief Treasury Accountant (MAS) (Mr T. McDONOUGH) will attend before the Council for the discussion of this item).

11th February 1977 (CR 10/736/72 III)

COUNCIL CHAMBER

CONFIDENTIAL #B

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