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15. Mr. WONG then commented that if Government helped people in this way to possess their own homes, they would realize that Government is not just a big landlord who cares only about collecting rents and making big profits. I really must put the record right on this score; our resettlement estates are running at a loss, even on the highly subsidized basis on which amortization charges are calculated which includes land at one-third of market value and repayment of capital over 40 years at 3¼% interest. Our tenants are simply not even paying their way at present and to make income match up with outgoings on the subsidized formula mentioned would involve a monthly rental increase in many rooms of up to $8. Let there be no mistake about it—there are no profits, big or small, in this operation.
16. Mr. LOBO expressed regret that we do not exercise a greater measure of control over tenants in our resettlement estates and suggested two solutions: one being the adoption of some new form of tenancy agreement, and the second being new legislation to put more teeth into our rules. This is a very fundamental and interesting suggestion and I have given very careful thought to it. As you know, we have never required persons moving into our resettlement estates to sign any form of tenancy agreement and this is because regulations made under the Resettlement Ordinance of 1958 spell out in some detail the conditions on which such tenancies are granted. For example, the tenant must pay his rent in advance on each rent day; he must not add to or remove from his premises any fixtures or fittings or put up any structure without written consent; he must not use the premises for any trade or profession other than as a private residence without authority in writing; he must not allow any arms, ammunition, etc. to be brought into the premises; nor must he keep animals of any kind (except one cat) on his premises. There are other conditions laid down with which I need not bother, but it does seem to me that we have adequate authority for maintaining decent order in the estates if we decide to use that authority. It seems to me that we have been surprisingly reluctant in the past to use the authority vested in us in appropriate cases, and I suggest that what is needed here is a determination to exercise our existing authority fairly and firmly as the public interest requires before we go on to contemplate new tenancy agreements.
17. As regards Mr. MACKENZIE's enquiry about the recent secondment of a Housing Manager from the Housing Authority to my department, the position is that at the end of her secondment to the Resettlement Department, Miss Stewart prepared a report to my predecessor designed for departmental use and including various recommendations. I regard the report as a reference document, to which we will from time to time refer as and when subjects covered in it come up for consideration; of course, I do not necessarily agree with all the recommendations in it and to that extent, it would not be entirely appropriate to pass them on as they stand to the Select Committees. But, as I have said, they will be helpful to us when we come to reconsider organizational, management, and such issues in future, and they are probably best dealt with in this way, in context.
18. And now, Mr. Chairman, I would like to survey in general terms the problems that face us and our plans for coping with them. In the first place, what stage have we reached in our programme for providing low-rental housing for the many categories of persons who qualify for this each year under the present eligibility rules? We have come a long way since those days sixteen years ago when the first resettlement blocks were built, and today there are no less than 506 multi-storey resettlement blocks in 25 estates; but still, we have to plan for about 100,000 new spaces each year to meet our commitments. This is the basis of the approved public housing building programme of 700,000 spaces over the next six years, an output which will be very largely taken up for housing persons in the various resettlement categories; the word "resettlement" in fact no longer gives an accurate picture of what we are doing since development clearances account for no more than one-third of our total annual allocations. The others include victims of fire and natural disasters, compassionate cases recommended by the Social Welfare Department, ex-tenants of dangerous buildings, and overcrowded families already in resettlement estates. During the current year 1971-72, we expect to have housed in new estates some 90,000 persons, men, women, and children, in rooms with private toilets allocated at a more generous standard per adult than the old 24 square feet allocation. The average allocation is now 35 square feet to 38 square feet per adult, counting children under 10 as half adults. On a per head basis, the average allocation is now about 33 square feet. This is real progress, the sort of progress in which all parties concerned should take pride; and as we go along, the standards of finishes and fittings are being steadily improved, as I have already mentioned.
19. As you all know, a very important decision has been taken earlier this year, to get to grips with the problem of our sub-standard Mark I and II estates, the earliest models of resettlement blocks. I know very well that Members of this Council have repeatedly expressed concern at living conditions in these old estates, and I am sure you will feel as relieved as I was to hear that a scheme of conversion and redevelopment at the Shek Kip Mei Estate had been approved at an estimated cost of $80 million (including the cost of overflow accommodation at Pak Tin for some 20,000 Shek Kip Mei residents). This is progress of the most positive kind and we must all hope that it will be possible to go on from there to tackle the other Mark I and II blocks. But let us be under no illusions as to the scale of such an effort; there are, over and above Shek Kip Mei, some 200 of these old
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15. Mr. WONG then commented that if Government helped people in this way to possess their own homes, they would realize that Govern- ment is not just a big landlord who cares only about collecting rents and making big profits. I really must put the record right on this score; our resettlement estates are running at a loss, even on the highly subsidized basis on which amortization charges are calculated which includes land at one-third of market value and repayment of capital over 40 years at 31% interest. Our tenants are simply not even paying their way at present and to make income match up with out- goings on the subsidized formula mentioned would involve a monthly rental increase in many rooms of up to $8. Let there be no mistake about it-there are no profits, big or small, in this operation.
16. Mr. LOBO expressed regret that we do not exercise a greater measure of control over tenants in our resettlement estates and suggested two solutions: one being the adoption of some new form of tenancy agreement, and the second being new legislation to put more teeth into our rules. This is a very fundamental and interesting suggestion and I have given very careful thought to it. As you know, we have never required persons moving into our resettlement estates to sign any form of tenancy agreement and this is because regulations made under the Resettlement Ordinance of 1958 spell out in some detail the conditions on which such tenancies are granted. For example, the tenant must pay his rent in advance on each rent day; he must not add to or remove from his premises any fixtures or fittings or put up any structure without written consent; he must not use the premises for any trade or profession other than as a private residence without authority in writing; he must not allow any arms, ammunition, etc. to be brought into the premises; nor must be keep animals of any kind (except one cat) on his premises. There are other conditions laid down with which I need not bother, but is does seem to me that we have adequate authority for maintaining decent order in the estates if we decide to use that authority. It seems to me that we have been surprisingly reluctant in the past to use the authority vested in us in appropriate cases, and I suggest that what is needed here is a determination to exercise our existing authority fairly and firmly as the public interest requires before we go on to contemplate new tenancy agreements.
17. As regards Mr. MACKENZIE's enquiry about the recent secondment of a Housing Manager from the Housing Authority to my department, the position is that at the end of her secondment to the Resettlement Department, Miss Stewart prepared a report to my predecessor designed for departmental use and including various recom- mendations. I regard the report as a reference document, to which we will from time to time refer as and when subjects covered in it come up for consideration; of course I do not necessarily agree with all the recommendations in it and to that extent it would not be entirely
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appropriate to pass them on as they stand to the Select Committees. But, as I have said, they will be helpful to us when we come to reconsider organizational, management and such issues in future, and they are probably best dealt with in this way, in context.
18. And now, Mr. Chairman, I would like to survey in general terms the problems that face us and our plans for coping with them. In the first place, what stage have we reached in our programme for providing low-rental housing for the many categories of persons who qualify for this each year under the present eligibility rules? We have come a long way since those days sixteen years ago when the first resettlement blocks were built, and today there are no less than 506 multi-storey resettlement blocks in 25 estates; but still we have to plan for about 100,000 new spaces each year to meet our commitments. This is the basis of the approved public housing building programme of 700,000 spaces over the next six years, an output which will be very largely taken up for housing persons in the various resettlement categories; the word "resettlement" in fact no longer gives an accurate picture of what we are doing since development clearances account for no more than one-third of our total annual allocations. The others include victims of fire and natural disasters, compassionate cases recommended by the Social Welfare Department, ex-tenants of danger- ous buildings and overcrowded families already in resettlement estates. During the current year 1971-72, we expect to have housed in new estates some 90,000 persons, men, women and children, in rooms with private toilets allocated at a more generous standard per adult than the old 24 square feet allocation. The average allocation is now 35 square feet to 38 square feet per adult, counting children under 10 as half adults. On a per head basis, the average allocation is now about 33 square feet. This is real progress, the sort of progress in which all parties concerned should take pride; and as we go along the standards of finishes and fittings are being steadily improved, as I have already mentioned.
19. As you all know, a very important decision has been taken earlier this year, to get to grips with the problem of our sub-standard Mark I and II estates, the earliest models of resettlement blocks. I know very well that Members of this Council have repeatedly expressed concern at living conditions in these old estates, and I am sure you will feel as relieved as I was to hear that a scheme of conversion and redevelopment at the Shek Kip Mei Estate had been approved at an estimated cost of $80 million (including the cost of overflow accom- modation at Pak Tin for some 20,000 Shek Kip Mei residents). This is progress of the most positive kind and we must all hope that it will be possible to go on from there to tackle the other Mark I and II blocks. But let us be under no illusions as to the scale of such an effort; there are, over and above Shek Kip Mei, some 200 of these old
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