ENG-1996 — Page 518

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HISTORY

To keep pace with the development, the government places strong emphasis on improving and expanding infrastructure. As a result, the territory has been transformed into a modern city with efficient road and rail links, tunnels and flyovers. New highways have opened up previously remote areas.

The development of Hong Kong's economic base has enabled the public sector to increase spending on housing, education, social welfare and health over the years from $21.32 billion in 1986-87 to an estimated $110.37 billion in 1996–97.

Hong Kong's public housing programme started with an emergency measure to rehouse some 53 000 people made homeless overnight in a squatter fire in 1953. It now encompasses a wide range of rental and home ownership schemes with comprehensive facilities, and houses about half the population.

The programme is in line with a long-term strategy to produce new housing and to redevelop the older rental estates to meet outstanding demand and rising expectations. The Hong Kong Housing Authority, with primary responsibility for this programme, plans to build some 113 000 new flats in the next three years.

Expenditure on education facilities and improvements has always been a major budget consideration. There are now free and compulsory primary and junior secondary school places for every student up to the age of 15 years. In 1996, the government subsidised Secondary 4 places for about 84.5 per cent of the 15-year-olds in a continuing programme.

Major social welfare advances have been made by the government and non- governmental organisations in the past decade, with expenditure increasing from $2.57 billion in 1986–87 to $15.67 billion during 1996–97.

Medical and health services are also undergoing vigorous development programmes which will provide five more major public hospitals and some 10 additional clinics and polyclinics over the next decade.

A comprehensive system of labour legislation has been developed to provide for employees' benefits and protection, work injury compensation, work safety and occupational health. Due to the restructuring of the local economy, the services. industry has replaced manufacturing as the largest employer in Hong Kong. To help workers displaced in the economic restructuring, the Employees Retraining Board has been established to equip them with new skills for alternative employment.