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HONG KONG URBAN COUNCIL

(3) MISS CECILIA L. Y. YEUNG asked the following question:

Can we receive an assurance, Mr. Chairman, that the increase of water charges will not be passed onto the tenants living in Urban Council housing such as resettlement estates in view of their comparative poverty?

THE COMMISSIONER FOR RESETTLEMENT replied as follows:-

Over half of the households living in resettlement housing pay for their water through individual meters. They will therefore be affected by the change in water charges in the same way as other households in Hong Kong.

(Mr. Henry WONG arrived at this point).

As the Financial Secretary mentioned in his speech during the budget debate on the 24th March, the average quarterly consumption of a resettlement household is only 4.6 units a quarter. Since it has been decided that the first 2,000 gallons consumed a quarter will now be supplied free, the average family bill will in fact be reduced by about a dollar. Only the top 10% of con- sumers in resettlement estates, i.e. those who use more than 70 gallons of water per day will pay increased charges.

Residents of Mark I and II blocks where a fixed charge for water is included in the rent irrespective of consumption will not be affected.

MRS. ELLIOTT:-Mr. Chairman, if the other resettlement tenant is going to have his water charges reduced by $1, will Mark I and II not qualify as well?

COMMISSIONER for ResettlemENT:-Mr. Chairman, according to the record for 1969-70, the average consumption for each person is 15 gallons per day. In fact, according to the old charges, if we were to impose the new charges, then they would have to pay more than they are paying at the moment.

MR. BERNACCHI:-I would draw attention to the way that the question is framed. It asks for an assurance that the water charges will not be passed on to tenants living in Urban Council housing such as resettlement estates. Can we have an assurance, therefore, that where the rent includes a charge for water the rent will not be increased?

COMMISSIONER FOR RESETTLEMENT: —I am unable to assure the Council on this point. I have stated that the present position is that

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these changes do not affect the Mark I and II residents. So I will go on the file.

MR. PETER C. K. CHAN:-Mr. Chairman, does the Department have to pay more for the water supplied to Mark I and Mark II to the Government? If that is so, eventually they may have to add the burden to those residents in Mark I and Mark II, if that is the case.

COMMISSIONER FOR RESETTLEMENT:-In fact, we have worked out a costing of which Members were informed. At the moment we are subsidizing to a degree of approximately $9 per room per month.

MR. C. K. CHAN:-In water charges?

COMMISSIONER FOR RESETTLEMENT:-The whole housing cost inclusive of water charges.

MR. C. K. CHAN:-What I am asking, you know, that in view of this increase in water charges we subsidize more than $9 if $9 is before the rise in the cost of water charges. Have you worked it out or we have to wait to work it out?

COMMISSIONER FOR RESETTLEMENT:-May I have your question again, please?

MR. C. K. CHAN:-You have just told Council that for the time being we are subsidizing about $9. That including subsidizing some of the water charges?

COMMISSIONER FOR RESETTLEMENT:

-That's right, yes.

MR. C. K. CHAN:-Now the water charges are higher it will cost the Department more. What this question implies you see is whether the Department pay more for the water. Would that more money be added to the rent in future?

COMMISSIONER FOR RESETTLEMENT:-I am not in a position to commit the Government to the future. I am just stating that, at the moment, we are charging them less than what they should have paid.

MR. KENNETH T. C. Lo:-Mr. Chairman, may I ask the Com- missioner for Resettlement, through you, if he refers to the top 10% of consumers? Is that residential consumers only or does it include restaurants and non-residential undertakings?

COMMISSIONER FOR RESETTLEMENT:-This excludes restaurants; they are separate categories. We have an analysis of the whole situation. If any Member wishes to know the details we can in due course provide a paper on the subject.