TNAG-1575-FCO40-2148-Housing-in-Hong-Kong-1986 — Page 38

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A more considerate rent policy has wide

implications, since old and new housing estates with the same value will eventually be put on equal footing in future rent reviews. Existing public housing tenants are gravely concerned about the factors constituting housing estate value; the methodology of calculating the 15% rent-income ratio; and the criteria for effecting a rent increase. Since 1980, residents have been left in quandary about the bi-annual rent increases which ranged from 15 to 48 per cent, being over and above wage increase and inflation rates. The prognostic, culmulative effects of rent increase would, in due course, bring rent beyond the affordability of the majority of public housing tenants. In this respect, figures put forward by the Committee, combining pre-1977 and post-1977 rent-income ratios, are grossly misleading. The Committee would do well to stop playing the numbers game and release accurate rent information and data for public discussion before formulating a new rent policy.

With regard to the housing subsidy proposal, the social work field supports the principle that those who can afford higher rents should get less subsidy.

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However, we do not agree with the general definition of "well-off" families which is based on the amount of total income of all income-earning members. Under this proposed arrangement, a family of four, each earning an average of HK$2,550 per month is considered well-off and is penalized by having their rent doubled; while another four-member family with the only bread-winner earning HK$10,100 a month is off the hook. again, the Committee, being too pre-occupied with the family income figure, has not only neglected the greater expenditures required by working members of the family, but has also ignored the fact that working children nowadays do not take home the full share of their monthly earnings. The proposal would therefore discourage young people from living with their families. It would also give rise to the formation of nuclear families and consequently an increase in the number of waiting