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Following is a question by the Hon Frederick Fung Kin-kee and a written reply by the Acting Secretary for Transport and Housing, Mr Yau Shing-mu, in the Legislative Council today (May 26):
Question:
The Chief Executive announced earlier at the Question and Answer Session of this Council that a five-month consultation would be conducted on subsidising home ownership and an account would be given in the Policy Address to be delivered in October this year. In its press release issued subsequently, the Government further indicated that extensive consultation on a series of important subjects (including the target for assistance and the fairness of providing publicly-funded subsidies, etc.) would be conducted through various channels in the coming months. In this connection, will the Government inform this Council:
(a) of the detailed and specific format and channels for conducting the aforesaid consultation; whether they are different from the modes of consultation on other various issues conducted previously by the Government; if so, of the reasons for that;
(b) of the criteria based on which the authorities determined the consultation topics; how they ensure the consultation's objectivity and independence, as well as maintaining comprehensiveness and objectivity when analysing the pros and cons of the issues to avoid drawing up leading questions and analyses of the consultation becoming biased; whether they will consider inviting independent academic institutions to undertake the consultation work; if not, of the reasons for that; and
(c) whether the authorities will, at the same time, consider conducting an in-depth and extensive consultation on the established land and housing policies comprehensively, focusing on the deficiencies and inadequacies of the existing policies and formulating stable, fair and sustainable long-term plans for the related social policies; if they will, of the details; if not, the reasons for that?
Reply:
President,
My overall reply to the three-part question is as follows:
The Chief Executive has stated that the Government's policy regarding the residential property market is to respond to market demand through the supply of land with the Application List System as the main axle supplemented by flexible improvement measures and land auctions from time to time so as to increase the land supply. In this year's Budget, the Financial Secretary has also proposed four measures, including providing more land to increase the supply of small to medium sized domestic flats, enhancing market transparency, curbing speculative activities via tax measures, and preventing excessive borrowing. The Government's role is to ensure a regular supply of land so that the residential property market develops in a steady and healthy manner. We will be continuing efforts on these fronts.
The Government's housing policy remains that as set out in the "Statement on Housing Policy" announced by the then Secretary for Housing, Planning and Lands in November 2002. That is, the Government is fully committed to providing subsidised rental housing for families in need and this will continue to sit at the very heart of the Government's housing strategy.
In this connection, the Hong Kong Housing Authority (HA) has put in place a five-year rolling Public Housing Construction Programme (PHCP) to cater for the demand for PRH. This is a continuous process which is reviewed on an annual basis. The HA keeps in view various factors, including the projection of population growth, rates of increase in the number of households and the number of applicants on the PRH Waiting List. According to the latest PHCP, the anticipated new PRH production during the five-year period starting from 2010/11 is about 75,000 flats, averaging about 15,000 flats per year. Together with the PRH to be recovered, it is expected that this production level would meet the Government's policy target of maintaining the average waiting time for PRH at around three years.
To summarise, we have all along adopted a targeted approach, with a commitment to help those in genuine need, while recognising that the private market also plays a significant role in housing provision. This is the foundation on which our housing policy rests. Nevertheless, the Government recognises that the subject of using public resources to subsidise home ownership is being debated in the community. Fundamental issues have been raised which require in-depth consideration, such as the difference between home ownership and housing needs; whether the Government should subsidise the public to invest in or purchase residential properties; whether subsidised home ownership is sustainable in the long run or can merely address short term situations; and whether the use of public resources to subsidise home ownership is acceptable having regard to the issue of fairness among different groups in the community.
On these important issues, the Government will listen to the views of different interested parties and members of the public to see if it is possible to identify a consensus view on a way forward. An extensive consultation programme lasting up to mid-September 2010 will shortly commence to engage stakeholders and members of the public through various channels to look at issues relevant to this subject. On May 17, 2010, to begin the consultation exercise, the HA was consulted on proposals to revitalise the Home Ownership Scheme (HOS) Secondary Market. These proposals include extension of the mortgage default guarantee period by the HA; provision of premium loan guarantee by the Hong Kong Mortgage Corporation to allow payment of premium loans by instalment; and streamlining administrative arrangements and enhancing publicity of the HOS Secondary Market. The Housing Department will continue its discussions with the HA on these proposals.
Furthermore, to ensure extensive participation, the Transport and Housing Bureau will, in the coming months, engage the public and different stakeholders through a variety of channels, including consultation sessions, focus group meetings, and through an E-engagement platform.
For consultation sessions, in addition to setting up special sessions with Members of the Legislative Council, we will engage the general public and concerned groups, District Councillors, statutory/professional bodies and relevant organisations, and academics. In addition, a series of focus group meetings will be conducted targeting different groups, including home owners who purchased first-hand flats from the HA or the Hong Kong Housing Society; those who have chosen to buy from the private sector; home owners who purchased HOS flats through the Secondary Market Scheme; home owners who purchased second-hand flats from the private sector; first-time home purchasers; those who rent their homes; PRH tenants and others. Consultants/moderators may be engaged as necessary to assist us in these consultation sessions. As for the E-engagement platform, we plan to make use of the Internet to engage participation from as wide a cross-section of the population as possible.
A consultation framework will be put up shortly to facilitate a focused discussion. Views and suggestions arising from this consultation exercise will be forwarded to the Chief Executive for his consideration.
Ends/Wednesday, May 26, 2010
Issued at HKT 13:00
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