TNAG-0912-FCO40-1122-Policy-on-housing-and-resettlement-in-Hong-Kong-1979 — Page 128

1

2

Para 4: As stated above there has been no deliberate "cut back" on the programme either subtle or otherwise. The housing for 1.5 million mentioned in HE's 1972 speech included new accommodation for those already living in overcrowded public housing; it was not simply "additional". Miss Lee's mathematics are not understood, as production up to the end 1978/79 totalled 63,413 flats with a further 206,773 flats programmed up to the end of 1984/85. The target of 300,000 flats will be met in 1985/86.

Para 5: The figures in the FS's budget speech are

entirely accurate and reflect the agreed Government programme outlined above. Miss Lee is apparently confused by the inclusion of the Home Ownership Scheme within the Public Housing Programme. It has always been a part of that programme and has always been included within the 10 year target; this was stated in the original ExCo memorandum on the Home Ownership Scheme and HE has mentioned it in each of his opening addresses to LegCo since 1976.

Para 6: The FS devoted much of his four hours' budget

speech to explaining the reasons behind

Government's reluctant but necessary decision to slow down public sector spending. It is extraordinary that as a writer for an economic journal, Miss Lee either did not listen, or heard but did not understand. I also explained things in a FOCUS programme (TVB) after the publication of Miss Lee's article.

Para 7: "Sudden change of pace" is inaccurate, the

restriction on the rate of increase of public sector spending on housing only prevents us reaching a rate of production never before achieved; and even at the new rate at 35,000 flats a year production will be more than twice as high as in 1978/9. The importance placed on housing by Government is shewn by the fact that housing is much less affected than on the rest of the public works programme by the restraint as increasing public sector expenditure:

Revised Estimate Estimates

1979/80

1978/79

Rate of Growth

Public Works other

than New Towns &

Housing

$1,150

$1,299

+13%

New Towns &

Housing

$1,695

$2,300

+36%

The quotation from my Review (Chapter 1) in the Housing Authority Annual Report refers "some 44000" and is at the upper end of the range of 40,000 45,000 flats a year regularly quoted elsewhere (e.g. HE'S October 1978 address to Legco) - the previous target.

/Para 8