Sir
OMELCO
DRAFT SPEECH BY DR HON HO KAM FAI, OBE, JP
LEGISLATIVE COUNCIL
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29.10.86
Adjournment Debate on the "Report of the Committee on Housing Subsidy to Tenants of Public Housing" and the "Report of the Domestic Rent Policy Review Committee"
The provision of public housing is an expression of community concern through the Government for low-income and needy families which are unable to secure proper accommodation in the private sector. The amount of housing subsidy from public funds being made available to these families should be in accordance with their means. When these families are newly established with young dependent children, it is likely that they are more in need of subsidized housing than those families with grown-ups engaged in gainful employment. However, as they gradually improve their financial circumstances over the years, their ability to take care of their housing needs increased. Government subsidies should be curtailed or even suspended, and re-directed to other families more desperate for subsidized housing. For this reason home ownership is being viewed as an acceptable alternative to subsidized rental accommodation. This principle of housing subsidy in relation to the family's means underlies the two Reports on Housing Subsidy and Domestic Rent Policy, and, as I understand it, is supported in general by the public. However, its application has provoked some
controversy.
The Committee on Domestic Rent Policy recommends a 15% median rent-income ratio guideline for new public rental housing. Personally, I consider this proposed percentage to be a fair and practicable guideline and is well within the tenants' ability to pay. By this standard, the public housing tenants only pay about one third of what their counterparts in the private sector are paying for their accommodation. addition, their counterparts may have to pay rates, management
In
OMELCO
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