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Following is the speaking note of the Secretary for Housing, Mr Dominic Wong, in the Special meeting of Finance Committee today (March 26):

Housing Expenditure

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(A) Total public expenditure:

Total public expenditure on housing in 2002-03:

* represents 10% of total public expenditure in 2002-03.

*i.e. $28,735 million

(B) Recurrent public expenditure:

Recurrent public expenditure on housing in 2002-03: -

* represents 5.6% of total recurrent public expenditure in 2002-03.

*i.e. $12,235 million.

* comprises: -

- 95% for the Housing Authority.

- 5% for Government departments

(C) Capital public expenditure:

Capital public expenditure on housing in 2002-03: -

* represents 24.5% of total public capital expenditure in 2002-03.

*i.e. $16,500 million.

*comprises: -

- 99.5% for the Housing Authority.

- 0.5% for Government departments.

Housing Bureau Manpower

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The total number of staff in the Housing Bureau in 2002-03 (establishment) will be 58, a net decrease of one against 2001-02.

* One post of Senior Engineer will be deleted.

Special tasks

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Tasks requiring special attention in 2002-03:

(A) Provision of 50,000 housing assistance opportunities annually

The Government will provide 50,000 housing assistance opportunities a year to meet long-term demand from eligible households. Out of this total, we will provide about half in the form of rental opportunities (public rental flats and rental allowances). The balance will be offered in the form of home ownership assistance, including:

(a) subsidised home ownership flats for sale; and

(b) housing loans.

* The quantum of loans and allowances to be made available each year is a matter for discussion between the Government and the Housing Authority.

* The Government pledged in the 2001 Policy Address exercise to examine in 2002 the feasibility of a pilot scheme to provide rental allowances to eligible non-elderly households.

(B) Rental subsidy for non-elderly households

- We are exploring the feasibility of providing rental allowances in lieu of public rental housing to eligible non-elderly applicants on the Waiting List when their turn comes for flat allocation.

- Rental subsidies provide an alternative choice to eligible applicants who prefer to live in private flats which they find more suitable in terms of location, design and size.

- If feasible, a pilot scheme will be introduced to provide rental allowances to eligible non-elderly households in the new financial year. We will discuss our proposals with the Housing Authority and the Legislative Council Panel on Housing.

End/Tuesday, March 26, 2002

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