XCC (87) 32
Economic implications
15
and
it
is
In terms of the pressure of demand on the building construction industry and
and on the economy as a whole, makes little difference whether a given number of flats financed and developed by the public or the private sector, except to the extent that either sector tends to build larger flats than the other. However, given that private developers are motivated by the opportunity for profits, they may make more efficient use of the resources they use than the public sector in order to keep down costs.
16
The provision of low interest home purchase loans would make it possible for more persons to purchase privately-developed flats at current prices. Unless there was a simultaneous increase in the supply of such flats, the provision of home purchase loans would tend to drive up flat prices, at least in the short-run. However, to the extent that private developers reacted to the rise in prices by increasing their output, which seems likely, some of the price increase would be reversed.
B
Recommendations on Public Consultation
17
Wide public and media interest in the findings of the strategy review is expected. It is
is therefore proposed that there be wide public consultation.
18
Consultation would comprise publication of a consultative document summarising the review findings in both English and Chinese. A copy of the document in English is at Annex B. Press conferences and briefing sessions will be arranged for interested organisations and district boards, using a video presentation. Written representations will also be invited.
19
Publicity would emphasize:
(a) the aims of the strategy review;
(b)
(c)
the objectives of the housing policy;
the three new policy initiatives, viz.
(i)
(ii)
redevelopment of all Mark I FGLCH estates
promotion of home purchase
(iii) maximisation
of private through
the HPLS.
contribution
-
VI and
sector
introduction of
CONFIDENTIAL
No comments yet.
Private notes are available after approval.