CONFIDENTIAL
Hong Kong to an even greater degree. The majority of the population is under 25 years of age and their attitudes could well contribute to the breakdown of the extended family system by the time they reach retire- ment age. This is an additional reason for proceeding with the early establishment of a compulsory and contributory social security scheme providing for retirement benefits. The arguments for including a non- means tested unemployment benefit in the scheme should take into account not only concepts of social justice but also the contribution that an entitlement to unemployment benefit, without the enquiries and delays inherent in the Public Assistance Scheme, would make to political and social stability in the event of another general recession akin to that of 1973-75. (As I understand the rules of the Public Assistance Scheme, if an able-bodied unemployed male fails to obtain work for one month after the date of his application, his monthly entitlement will start from the first day of the following month with payment to be made in arrears, ie. if a man registers on 1 January, his first payment would be made on 1 March and would be the allowance for February).
HOUSING
36. The Housing Programme is impressive. From 14,000 flats in 1977, completions in 1978 will rise to 20,000 and to over 40,000 in 1979/80 with capacity for about 250,000 people. This level. should be maintained at least until 1984/85 and will make a major impact on one of Hong Kong's pressing social needs. The Housing Authority has stated its obligation to provide decent housing for low income groups at rents they can afford and this policy is being followed in the New Towns where public housing estates consist almost entirely of new improved types.
-
37. The figures for housing completions given in the preceding para- graph include those for the Home Ownership Scheme. It is proposed to build 42,000 flats for sale over the next 9 years, beginning with the completion of 8,500 in 1979/80 and between 5,000 and 6,000 in each year until 1985/86. The Government will also be inviting tenders from private real estate developers initially for two sites, for the construction of flats for sale to people within the eligible income range, which may open up an alternative way in which Government can promote home ownership. Houses under the Home Ownership Scheme will be sold to eligible buyers at prices below those prevailing in the open market. On the strength of a Government partial guarantee against default, special mortgage arrangements have been completed with leading banks which will provide for a standard repayment period of 15 years, interest rates of between 71% and 9% and a minimum down payment of 10% of the sale price. These arrangements compare very favourably with open market terms. Initially, eligible households will be those earning up to HK$ 3,500 per month and public housing tenants who are willing to surrender their existing tenancies irrespective of income.
38. Judging by the queues I saw at one of the Housing Authority's offices, the Home Ownership Scheme seems certain to enjoy great popularity and I understand that it would be possible to increase the number of units available by diverting flats built for renting to those available for purchase. At the same time, care is clearly necessary in allocating financial and land resources to guarantee that the large part of the population, especially the lower income groups who need cheap rented accommodation, will be adequately catered for.
13
CONFIDENTIAL
/INDUSTRIAL SAFETY
No comments yet.
Private notes are available after approval.