TNAG-1603-FCO40-2210-Future-of-Hong-Kong-annual-reports-to-Parliament-on-Hong-Kon-1987 — Page 65

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of the

On the basis of present trends a significant improvement in the

surplus is likely at the close of the current financial year.

Nevertheless, the Hong Kong Government will continue to keep public

expenditure firmly under control and to contain the size

public sector, presently equivalent to about 16% 17% of the gross domestic product. This will be achieved through prudent management

resources and by continued efforts increase the efficiency of

the public service, the total size of which has increased by only

of

2% in 1986

to

IX.

SOCIAL PROGRAMMES

(a)

55.

Housing

For the seventh consecutive year the Hong Kong Housing

Authority has exceeded its annual target for

for the production of new

flats, with 43,000 flats being added to the public housing stock.

_rivate sector production was estimated to be

a record 38,000 flats

in 1986 and a similar level of production is expected in 1987.

56

On

the basis of present rates of production, the Housing

Authority should be in a

position to meet the demand for rental

housing by the mid-1990s. At the same time there is a growing

demand from families wishing to own their own home s and this will

take longer to satisfy. The Hong Kong Government is considering how

private sector output can best be encouraged and how public

resources can best complement the private sector in meeting the

long-term demand for housing in the 1990s and beyond.

57

in

As part of the comprehensive programme to clear and re-house

families living in urban squatter areas, rehousing has started

preparation for a major clearance of squatters in the

Shau Kei Wan

area of Hong Kong Island in 1987. The Housing Authority also

continued to improve the environment of many squatter areas,

particulary those which cannot be cleared in the near future.

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