ENG-1973 — Page 192

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PUBLIC WORKS AND UTILITIES

plywood, mild steel and cement-forced overall costs up by nearly 20 per cent over the 12-month period. Labour costs rose steadily over the year by between 10-12 per cent. Due to the general world shortage of steel it appears unlikely that the present high cost of reinforcement will drop for at least six months.

The increased interest shown last year in public building contracts continued, and as the year progressed private building appeared to be gathering momentum again. Since Hong Kong relies on overseas markets for virtually all its basic building materials, worldwide shortages of raw materials and general inflationary trends will continue to be reflected in local prices. Similarly there seems little likelihood of a drop, or even a levelling-off, in labour costs in the building industry and the demand for building workers greatly exceeds the supply.

In order to control rising costs as far as possible and-in view of the vast building programme envisaged over the next 10 years-to maintain efficiency and speed with the limited trained labour force available in Hong Kong, a far greater degree of mechanised or system building will be essential.

Progress on the construction of government buildings was generally good, despite difficulties in obtaining adequate and sufficiently experienced labour. Maintenance works on buildings continued to expand although the rate of expansion was affected by the shortage of labour. Construction of buildings for the Property Services Agency of the United Kingdom Department of the Environment went ahead well. Private architects, private quantity surveyors and consultants continued to assist in the public building programme.

During the year, expenditure on resettlement estates and associated buildings amounted to about $29 million, on government low-cost housing $35 million, and on all other projects $138 million.

The two types of public housing, resettlement and government low-cost housing, have now been combined under the 10-year (1973-4-1982-3) housing programme with a view to providing 1,800,000 individual units of 35 square feet. Of this overall housing target, the Public Works Department is responsible for the production of 558,000 individual units, the balance being the responsibility of the new Housing Department.

During the year, 20 housing blocks providing accommodation for 71,500 people, one estate welfare building, six 24-classroom primary schools, and 10 kindergartens were completed in various housing estates. At the end of the year, work was continu- ing on 36 blocks which, when completed, will house about 124,500 people, while 14 24-classroom estate primary schools, 11 kindergartens and six restaurants were also under construction. The Phase I conversion work on six Mark I resettlement blocks at Shek Kip Mei estate and the construction of two flatted factories at Kowloon Bay were also in hand.

Improvements to the electrical wiring in Mark I and II resettlement blocks at Chai Wan, Wang Tau Hom and Tai Wo Hau estates were finished during the year, completing the entire five-year rewiring programme. At the end of the year, piling