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The following is a response by a Government spokesman today (May 6) to media enquiries on the public consultation to be initiated by the Transport and Housing Bureau on issues relating to subsidising home ownership:
As expressed by the Chief Executive at a Question and Answer Session in the Legislative Council today, the Government's policy regarding property market is to respond to market demand through the supply of land, of which the Application Lists System is the principal mechanism and is supplemented by flexible improvement measures and land auctions not on a regular basis to increase land supply. Notwithstanding this, the Government appreciates that issue of subsidising home ownership would require the consensus of the public. In the light of this, the Government will, in the coming five months, consult stakeholders and members of the public, and listen to their views on this issue.
First of all, the Government will consult the Housing Authority (HA) on revitalisation of the Home Ownership Scheme (HOS) Secondary Market on May 17. Under the framework of "two markets and three levels", the Housing Department (HD) has been looking into objectives of the HOS Secondary Market and the relevant proposals' effectiveness and implications on the HA. Areas being explored include premium payment, administrative procedures for HOS transaction and mortgage default guarantee.
Apart from revitalisation of the HOS Secondary Market, if the Government was to subsidise home ownership, some important topics have to be addressed, including -
* Who should be the target for subsidised home ownership? How should that be achieved? What are the reasons for using public funds to subsidise them?
* Will the use of public funds to subsidise a group of people be fair to other taxpayers?
* If land allocated for public rental housing development is to be used for the construction of HOS, will that affect the supply of and waiting time for public rental housing?
* If land allocated for private residential development is to be used for the construction of HOS, will that affect the supply and the price level of private residential flats?
These series of subjects are of great importance to the community. The Bureau will, in the coming months, engage the public and different stakeholders. Preparation for the consultation work is now underway.
Ends/Thursday, May 6, 2010
Issued at HKT 19:08
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