TNAG-2977-FCO40-1469-Economic-policy-in-Hong-Kong-1982 — Page 43

wages in real terms and relatively stable prices of building

materials such as cement and steel bars, the increase in

building and construction (including civil engineering) costs

(5). was moderate

The Labour and Materials Cost Index rose

by 9% in the second quarter compared with the same quarter a

year earlier. The Tender Price Indices for public building and for public housing estate projects, presumably affected by variations in profit margins, actually declined by 6% and 13% respectively in the same period.

Land

5.9

In the third quarter the Government sold, at Crown land auctions and by tenders (including Letter A/B tenders), a

total of 108 280 square metres of land, comprising 7 628

square metres for industrial use and 100 652 square metres for

non-industrial use. Taking the first nine months as a whole,

there was a

reduction of 15% in the total area of land sold

compared with the same period last year. Given that the

Government has maintained a continuing land sales programme,

this reduction was largely due to a slower take-up rate So far

this year.

Electricity and gas

5.10

At 3 837 million

kilowatt

hours, electricity

was 9% more than that in the

amount of electricity consumed by

consumption in the third quarter

same period of 1981. The

/ domestic

(5) It is not appropriate to use the Labour and Materials Cost Index and the Tender Price Index, both of which refer to building projects exclusively, as reliable indicators of building and construction (including civil engineering) costs in general. Work is, therefore, being undertaken to construct a separate price/cost index for highways and, if possible, to construct indexes for other civil engineering projects.

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