TNAG-1726-FCO40-2439-Minutes-and-Hansards-of-the-Legislative-Council-of-Hong-Kong-1988 — Page 322

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HONG KONG LEGISLATIVE COUNCIL-3 February 1988

SECRÉ Y FOR LANDS AND WORKS: Sir, I am very grateful to Mr. CHEUNG fo raising this subject now, because it is one to which the Administration has been giving considerable thought in the light of the recently revised housing strategy, and perceived changes in our patterns of employment. I will deal with the question in two parts. First, private investment in housing development and second, private investment in industrial development.

Housing development

If the new towns are to function properly as communities, there must be a mix of both public and private development and the overall planning of each new town makes provision for varying proportions of private and public housing. Historically and as a matter of policy all the new towns have been public housing led. This was a matter of necessity in the original programmes which were primarily dictated by the needs of the public housing programme, but it was also practical in private investment terms, because it was clear that private housing on any scale was more marketable against a background of a sub- stantial public housing population and the supporting services and infra- structure provided for it. In general terms, this is likely to remain the case, although it applies much more emphatically in areas more distant from or less. well connected with the urban areas. In Tuen Mun, for instance, private investment was especially slow in the early stages. In Fanling/Sheung Shui, although better served by transport in its early stages than Tuen Mun, the pattern has been similar. The present population is about 120 000 with 70 per cent living in public housing (including Home Ownership Scheme flats) and 30 per cent in private sector housing. The planned population on full development is double that figure, but the final ratio of public to private housing is expected to be about 58 to 42. The shift in balance will take place gradually, as it has in other new towns.

A substantial proportion of the land zoned for private development in Fanling and Sheung Shui is in private ownership and is expected to be redeveloped. To encourage redevelopment of the central areas zoned for commercial residential use, the maximum permissible plot ratio was recently increased. An approximate average of 4 hectares of residential and residential/ commercial land per year is programmed for sale in the next four to five years. We have every reason to believe that this land will be popular with investors. We are also considering changes of policy in respect of other residential zones to encourage earlier development by the private sector.

Industry

Investment in industrial development is closely related to both the entre- preneurial demand and also to the availability of labour. The earlier planning of new towns assumed that a high proportion of the employment of those housed would be in local industry, and the successful provision of housing was closely related to the provision of or access to employment opportunities. In Fanling/