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Speech by Director of Housing at Housing Authority open meeting
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The following is issued on behalf of the Housing Authority:

    Following is the speech by the Director of Housing, Mr D W Pescod, at the Housing Authority open meeting today (June 25):

Madam Chairman, Members and colleagues,

Introduction

     I am speaking to you today in the Regular Open Meeting of the Housing Authority (HA) for the third time in my capacity as the Director of Housing. Doesn't time fly when you are busy! When I first took up my appointment in early May 2010, I was assured by Civil Service Bureau's colleagues that Housing was a quiet posting. My predecessor however quickly put me right when he warned me that I was in for a busy time. How right he was. Since then, I have kept a Chinese idiom in mind whenever I encounter any difficulties or challenges, "¤£¬ÈÁ}¨¯¡BªïÃø¦Ó¤W", which means to overcome difficulties with perseverance. I am very fortunate to have generous advice from Members, enormous support from my colleagues in the Housing Department (HD) and most of all over the last two and a bit years, the wisdom and guidance from our Madam Chairman. Indeed, it is fair to say that, without these, it would not be possible for the Department to face up to so many obstacles and challenges over the years, and still be able to continue delivering quality services to our community and public housing tenants.

     Since its establishment in the 1970s, the HA has been providing quality homes to low-income families in Hong Kong. Irrespective of the changes in the political, social and economical environment over the years, the key role and commitment of the HA in the provision of quality public rental housing (PRH) for low-income families has never been altered. This constant is so important to the well-being of individuals and the stability of our community. In the light of the impending change in the Government, I understand that some people may have concerns about possible changes to housing policies. Indeed, it seems like everyone has been commenting on housing or offering helpful suggestions over the last few weeks. Well my speech today will deal with the practical reality we face.

     I am not in a position to say anything today about the policies that may emerge in the new term of Government, but I want to make one thing absolutely clear: my colleagues in HD and I will faithfully serve the HA as always and work at full strength and dedication to implement the policies set by the Government of the day to serve the people of Hong Kong to the best of our ability.

     About two weeks ago at the Annual Special Open Meeting, Members shared their thoughts and views on various different aspects of housing and the work of the HA. As always, the views expressed show that Members care deeply about the HA and its work. I would like to take this opportunity to express my appreciation for your helpful comments and your unfailing support to the HA's work in the past year. I will attempt to respond to Members' views and concerns in the next few minutes.

The principal role of the HA as the provider of PRH

Managing the demand for PRH

     As you know, the major task of the HA is to develop and implement Hong Kong's public housing programme, and to provide adequate and affordable PRH for those low-income families who cannot afford private rental housing. Eligible low-income families may apply to the HA for PRH under the Waiting List (WL), which is a transparent and open system through which eligible applicants wait for their turn for allocation of PRH units in an orderly manner. Our target is to maintain the average waiting time (AWT) for the general WL applicants at around three years. Here I wish to stress that we have in place a consistent and fair mechanism to measure the AWT. Under the established methodology, the waiting time refers to the time taken between registration on the WL and the first flat offer for general applicants housed in the past 12 months. Naturally, any frozen period during which applicants are in fact not eligible for flat allocation is excluded. This long-standing methodology provides a consistent basis on which we formulate and maintain our AWT target.

     According to the HA's latest Public Housing Construction Programme (PHCP), which is rolled forward on a yearly basis, during the five-year period from 2012/13, a total of 75 000 new PRH flats will be built, averaging at about 15 000 units per year. However, as our Madam Chairman indicated at the end of the last Open Meeting, the annual PRH production of 15 000 units is not a fixed target. Many Members commented on the noticeable increase in the number of applicants on the Waiting List (WL). As at end December 2011, there were some 175 900 applicants on the WL waiting for PRH allocation. I expect that this number will continue to increase. We are closely monitoring the situation and have embarked on a review of the production requirements to allow us to seek the additional land necessary to build additional units should the rising trend persist. In such case, we will endeavour to increase our PRH production in the rolling five-year PHCP so as to maintain our target of the AWT for general WL applicants at around three years. At the risk of sounding like a broken record, I must stress that the key to the prompt delivery of additional units will be the timely provision of additional land in a suitable condition to allow us to commence building quickly. To this end, we will continue to work hard with the concerned policy bureaux and government departments to secure new land. In this regard, I adopt the philosophy "We must do our job well first".

     I think we all know how important the land supply issue is. It was good to hear the recent announcements on efforts to boost land supply in years to come. We must also do our part. Accordingly, I have agreed with the Development Bureau and Planning Department that the HD will itself undertake detailed investigations and carry out the full planning and engineering studies required on selected housing development sites. We are now exploring every possible means to enhance our capacity to support an increase in PRH production. I will cover these matters in more detail later.

PRH demand from non-elderly singletons

     At the Annual Special Open Meeting, some Members expressed concerns over the housing needs of the non-elderly one-person applicants. I can assure you that we will carefully consider your views and suggestions on how to effectively address the needs of these applicants. In doing so, of course, we must never ignore the fact that PRH resources are precious and limited. The reality is there is a need to strike a balance among the needs of various groups of WL applicants, to ensure that PRH resources are allocated rationally to those with the most pressing housing needs. It was for this reason that your predecessors implemented the Quota and Points System (QPS), which was carefully considered to help set the necessary priorities.

     Professor Anthony Cheung made the point that it is important to study the WL profile so that we can identify where the genuine demand lies, to help us determine those to whom we should accord priority. This process must be ongoing as the WL is dynamic and constantly changing as those on the list get allocated units and new applicants join. A brief overview of the profile of WL applicants shows us that some 45 per cent of applications are from non-elderly one-person applicants under the QPS with just over half aged below 30. Further analysis reveals that some 41 per cent of the non-elderly one-person applicants under 30 years old are students at the time of application. There is a lot of information available. We will continue to study and monitor the WL closely as we go forward

The rent adjustment mechanism

     After extensive and detailed discussions, Members recently endorsed the outcome of the second rent review under the existing rent adjustment mechanism. The result is a rent increase capped at 10 per cent. Some Members suggested that there is a case to review the rent adjustment mechanism. You all know that I am cautious on this point. I must point out that the current mechanism was established by the HA after lengthy deliberation and extensive consultation and has been enshrined in the Housing Ordinance. It provides an objective basis for the HA to determine when and to what extent the PRH rent should be adjusted upwards or downwards. Some of those who have criticised the mechanism say that it fails to allow for factors such as inflation to be taken into account but I feel that it is important to stand back and consider the thinking behind the mechanism.

     The mechanism is the tool by which we collect data from our tenants to determine the actual changes in income. This is then used to set the rent adjustment. All factors which impinge on tenants' affordability, including inflation (or possibly in future deflation), cost of living or economic circumstances, can already be taken into account under the existing legislation by way of mitigation measures. This provides flexibility for the HA to introduce relief measures to tenants in response to prevailing circumstances as it sees fit. I must caution that a review of the existing mechanism will be complex and require extensive consultation in the community. Depending on the outcome, any changes will very likely involve legislative amendments. Such an exercise would take time and should not be embarked upon lightly.

Opening up new sites for PRH

     On the supply side, I have already said that we have to be proactive and creative to explore various means to secure additional land for PRH production in response to the growing demand for PRH.

     Over the years, we have been liaising closely with the concerned policy bureaux, government departments, respective District Councils (DCs) and local communities to identify suitable sites for PRH development in different parts of the territory. We will consider every single site, regardless of its size or location for PRH development in accordance with the principles of optimisation of land use, maximisation of cost-effectiveness and sustainable development.  

     As I indicated earlier, we have now agreed to take up additional responsibilities in respect of full planning and engineering studies for a number of housing development sites in Yuen Long and Sheung Shui. We hope that this will help the concerned government departments while facilitating and advancing the preparation of suitable land for PRH developments in a timely manner.

     In the course of planning for new PRH projects, we will comply with all the statutory requirements and the latest practice notes; make reference to the prevailing Hong Kong Planning Standards and Guidelines; and conduct the necessary technical studies and assessments such as environmental, traffic, air ventilation and visual assessments to ascertain the feasibility and viability of PRH developments.

     Tom Peters, a renowned American writer, is reported to have said, "The dumbest mistake is viewing design as something you do at the end of the process to 'tidy up' the mess; as opposed to understanding it's a 'day one' issue and part of everything." We acknowledge the importance of planning and design in each and every PRH project.

     We will endeavour to increase flat production through optimising the development potential of each site. We will be seeking agreement from the relevant department to relax the plot ratio and building height restrictions. We will do so without compromising on environmental quality. Indeed, over the past few years, we have successfully increased the development intensity of some PRH projects resulting in additional PRH production. For example, we succeeded in increasing the plot ratio and relaxing the building height restriction of the PRH projects in Fo Tan and Hung Shui Kiu Area 13 which resulted in a substantial increase of PRH flats to be produced on these sites. In all developments, we will continue to adopt the principle of optimised utilisation of land resources for building cost-effective and sustainable public housing developments.

Redeveloping aged PRH estates

     Apart from our efforts to open up new sites for PRH production and exploring ways to appropriately increase the densities and plot ratios of PRH projects, we must, as many Members have indicated, look into our own pocket to ensure the optimal use of the development potential of existing aged PRH blocks.

     Let me just recap the current situation. In 2011, the HA refined its policy on redevelopment of aged PRH estates to further incorporate key elements when considering the clearance and redevelopment of aged PRH estates. Apart from applying the criteria of structural safety and economic repair under the Comprehensive Structural Investigation Programme, we also examine the build-back potential of aged PRH estates and the availability of suitable rehousing resources. This refined redevelopment policy struck a balance between the sustainability of existing buildings and the redevelopment potential of older estates.  Pak Tin Estate was selected under the refined policy as the first project. The Pak Tin redevelopment plan has just started and will take some time to complete. We will of course fully engage the local community in this exercise as we go forward. We know and understand that people worry about the effect of redevelopment on their social, financial and economic situation. We will work hard to address these concerns throughout the redevelopment process.

     At the Special Open Meeting, there were concerns expressed over the rehousing arrangements for tenants affected by redevelopment programmes. May I assure you that a key factor when considering the redevelopment of aged estates is whether there are suitable and adequate rehousing resources. In fact, for the Pak Tin redevelopment plan, the rehousing arrangements have been mapped out in a holistic and careful manner. We have given full regard to the tenants' aspiration for local rehousing and identified newly completed flats available in the Shek Kip Mei Estate Phases 2 and 5, both very close to Pak Tin Estate, as the primary rehousing resources for the first batch of the affected PRH tenants. When we formulate other redevelopment plans in future, I can assure Members that we will continue to adopt a "people-oriented" approach and will try our very best to identify suitable and adequate rehousing resources for the affected tenants having due regard to their aspiration for local rehousing.

     The Pak Tin redevelopment plan, being the first project under the refined policy, will be a blueprint for future projects. The HA will examine the feasibility of future redevelopment projects taking into account factors such as the redevelopment need, build-back potential and the suitable rehousing resources and this will be done on a case-by-case basis. So Ms Yeung Sin-hung please rest assured that we will carefully handle every project having due regard to all the relevant factors.

     I know that there are concerns about this programme and people are keen to know which other estates may be targeted in coming years. I have to say that we are adopting a very cautious approach. We are conducting a basket of detailed studies on aged PRH estates, which include various technical and environmental impact assessments, master planning for the district, urban design and the development density, etc. We are also discussing with concerned policy bureaux/government departments in relation to the provision of community, welfare, transport and educational facilities. Should consensus be reached, we will establish the feasibility of redevelopment of an individual estate and consult Members once we are ready. However, I do not intend to identify which aged estates are being studied as I do not wish to raise concerns or fuel speculation at this stage. I will just say that redevelopment projects are not something we will embark upon without very careful and detailed studies. Nor are such projects rapid. They take years to complete due to the need to phase the clearances and the time it takes to demolish and rebuild on the site.

Community engagement in PRH developments

     While on this subject, I would like to say that for the smooth implementation of PRH development, active participation of the local communities is essential. Quite often, local communities have worries or concerns about our proposed PRH development in their neighbourhood, such as the possible impact to the environment, traffic, etc. We fully understand such concerns. We will engage the local community, in the planning and design stage so as to understand their concerns and aspirations for the new development. For major PRH developments, we have established a system to organise community workshops led by officers at the Assistant Director level to gather views from the local residents. For example, earlier this year, we organised a community engagement workshop for the Ex-Kwai Chung Police Married Quarters project. I understand that many of you are actively engaged in district issues, in particular as members of the DCs. May I appeal to you to help spread the word and encourage local residents to express their views and support our projects. I can assure you that we do take their views seriously and will follow up positively as far as possible. On the other hand, I must also appeal for understanding: we are under considerable pressure to speed up and increase our development programme. We are also dealing with a much more diverse group of development sites, many of which will have local impact. Under this situation we will always do our best to listen to local views but at the end of the day we may have to push ahead, even in the face of opposition if need be, to build the homes that Hong Kong people need.   

Lead time for PRH development

     Before I move on, I would like to pick up on one of the points I made in my speech last year. At the Regular Open Meeting in June 2011, I commented on the normal timetable for launching a PRH project based on our considerable experience with the development of public housing units. You may recall I said on average seven years. I can say I stand by that. Surprisingly, this hits the headline in local newspapers the following day. For a civil servant, getting headlines is not a good thing! Well, I am not sure whether there will be any media coverage tomorrow on what I am going to say today but I still wish to take this chance to say a few words on this matter.

     All of us in the HD work hard to deliver new PRH units in the shortest possible time so as to meet the demand. However, it is a fact that a certain amount of lead time is required to prepare land for the development, conduct preliminary planning and design, consult the District Council and local communities, obtain planning brief approval as well as planning applications approval if necessary, acquire the land and then actually build the flats. I am pleased to say that the actual construction process has been refined over the years, so that we now have a fast three-and-a-half-year construction time, typically comprising one year for foundation works, plus two and a half years for superstructure works using system formwork and precast construction with a six-day cycle for each typical floor. I believe this is already an industry and world-class performance given the volume of production we have. As such, there is a limit as to how much further we can go to shorten this construction time. Yet I am very conscious of pressure to speed up production further. The key to speedy delivery of projects lies in being given sites which are properly zoned, resumed, cleared and formed with adequate provision of infrastructure. Beyond this, if we can secure the early support from DCs and the local communities, there is always the possibility of advancing the completion of flats for projects in the pipeline. Examples of what can be done if these conditions are met are the first six new Home Ownership Scheme (New HOS) projects that we are currently fast-tracking. We are confident that these will be delivered within a five-year time frame. Of course, I hope this approach can also be achieved for other projects in future. I do wish to sound more optimistic this year so I assure you that my colleagues in the Development and Construction Division (DCD) will continue to make every effort to expedite the development of housing units as far as possible.

HA to undertake the New HOS

Latest progress of the New HOS

     As I have already touched on the six projects, let me move on to the New HOS. Last year, the Chief Executive announced in his Policy Address the resumption of the Home Ownership Scheme in response to the aspirations of the low- and middle-income families. The HA was given the task to implement the New HOS. As always, the HA is supportive to the Government's housing policy and will take forward the tasks given to us diligently.

     I am grateful for the comments from the Honourable Alan Leong, the Honourable Wong Kwok-kin and Ms Yeung Sin-hung on the New HOS. My colleagues are working very hard to bring in the first batch of New HOS projects as soon as we can and the preparatory work concerned is in full swing. In order to launch the pre-sale of the New HOS as soon as possible, we are adopting a special exercise to complete the technical studies, public consultation, planning brief preparation and design process within a condensed period of time to fast-track the production. We have in fact compressed the works usually carried out in the first three years of a project into one year. The time required for construction will remain unchanged.

     Meanwhile, relevant HA committees have held discussions on the implementation details of the New HOS, such as price-setting and premium payment arrangements. Approval has been given to the inclusion of these projects in the Public Housing Construction Programme, plus scheme designs and project budgets for the six projects. I am most grateful for Members' prompt action and support for these projects.

     I use the excerpt of the Beatles' "A Hard Day's Night" here to explain to you that our colleagues are under huge pressure for the New HOS and existing programmes. They are putting a lot of effort in them.

Monitoring the resources implications to HD

     As many of you may be aware, we have recently succeeded in securing additional manpower resources to cope with the additional workload arising from the implementation of the New HOS. Assuming that it goes through the Finance Committee of the legislature this week, we will start moving on quickly. However, I understand that even with the additional posts created, colleagues will continue to face a heavy workload. Let me assure you and my colleagues that I am very conscious of the staffing situation. With pressure growing on both PRH and the New HOS production programmes, we will certainly seek more resources as appropriate. I want to say a big thank you to all my colleagues in the HD. We must never ignore the fact that their dedication and professionalism has built the reputation of the HA and the department and allowed us to achieve the highest standards of production and management of public housing. I know I can count on everyone in the department to perform in line with the good old HA tradition of always striving for the best results, while upholding our core values of being Caring, Customer-focused, Creative and Committed.

HA to continue to create a better living environment for tenants

Adoption of creative solutions

     Recently, I paid a visit to a couple of the HA's newest PRH developments and I was delighted to see the progress on these sites. Colleagues have been working hard to ensure that the projects are completed on time while dealing with difficult site and development constraints. To do so, creative solutions have to be adopted. As Mr Michael J Gelb, a talented writer and trainer in personal development, said, "Life is a continuous exercise in creative problem solving." One of the examples of the creative solutions we have adopted in our projects are the noise barriers installed in Yau Lai Estate Phase 5 abutting the approach road and toll plaza of the Eastern Harbour Crossing. Such features always have the potential to be both an eyesore and a constraint to the development. However, the installation has been carefully designed to make the noise barriers integrate well with the environment of the estate. Moreover, care has been taken to ensure that the noise barriers not only have provided effective noise mitigation but also have helped create a more user friendly space for tenants in the estate.

New mock-ups as test beds

     On another visit I saw the new mock-up flats in San Po Kong, which have enhanced noise abatement measures such as acoustic windows and noise-arc balconies installed to address the environmental problems affecting some of our development sites. The use of such full size mock-ups not only maximises the efficiency of our PRH flat production, but equally important they help minimise wastage. We may need to experiment dozens of times in order to arrive at the optimum solution to a problem; but when we do so, the result is a much improved product. I would like to give a thumbs-up to all colleagues who are working hard to improve, innovate and enhance our PRH production. These efforts are already impacting positively on the lives of our tenants.

Integrated environmental policy

     As you well know, the HA is committed to uphold the principles of environment protection, and has been striving to go "green" in our PRH planning, design, construction and management of our existing PRH estates through adopting measures, such as greening, recycling, energy saving, carbon reduction, water and materials saving. In the past years, we have set realistic environmental targets for both our new projects and existing PRH estates and I am proud to say that these targets have been fully met.

Greening

     To protect the natural environment and promote the good health and well-being of our tenants, we have put substantial effort to introduce greening in our estates. For larger new PRH estates of more than 2 hectares, our target is to achieve a greening ratio of 30 per cent, by providing planting at grade and on slope areas, installing grass-paving systems in areas with less traffic and providing green podium roofs or green decking to low-rise buildings and vertical greening panels on external walls. Sites of less than 2 hectares have a greening ratio set at 20 per cent.

     As for our existing PRH estates, we also endeavour to enhance the green environment for our tenants. In the past year, we have implemented landscape improvement works in 18 existing PRH estates to revamp and improve their green features and developed two thematic gardens in Choi Wan (I) and Sha Kok Estates respectively. Some 1 200 trees, 508 000 shrubs and 63 000 annuals were planted in our PRH estates, and we have a trial installation of green roofs at four existing PRH estates including Wo Lok, Fu Shan, Choi Hung and Fuk Loi Estates.

Energy saving

     We are mindful of our responsibilities to help combat global warming and climate change. To this end, the HA has been implementing a number of energy saving measures to reduce energy consumption in our existing PRH estates so as to better utilise the earth's resources. Through our continuous effort, I am proud to see that the total annual electricity consumption in the communal portions of the PRH domestic blocks has been successfully reduced.

     In fact, lighting and lifts account for 83 per cent of overall electricity consumption in communal areas of a PRH domestic block. We have adopted a number of energy-saving initiatives to cut down the energy consumption for lighting in existing PRH estates. These include modification of lighting circuits and installation of energy-efficient T5 fluorescent tubes in common areas and LED lighting for exit signs. The results are clear: saving of around 9 million kWh of electricity per year - equivalent to a reduction of around 6 350 tonnes of carbon dioxide equivalent emission.

     For the new PRH estates, we have adopted a diverse range of energy-saving initiatives to further reduce electricity consumption and our carbon footprint. These include use of the two-level lighting control system; installation of the photovoltaic panels on the roofs of domestic blocks; application of the wind-solar hybrid lighting system; and piloting the use of LED lighting in public areas, lift lobbies and corridors of some new estates. Besides, we have been providing optimised window design at domestic flats, corridors and lobbies at typical floors for better natural lighting and cross ventilation so as to allow energy saving at source. We have managed to reduce carbon emissions during construction of Kai Tak Site 1A by a total 54 000 tonnes, which is equivalent to the amount absorbed by over 2 million trees a year! We are proud of this project and have escorted numerous visitors to the site. They have been most generous in their praise for our work.

Maintenance and improvement schemes

     Efficient, innovative and practical maintenance and improvement works can help revitalise the existing PRH blocks to create a better living environment for our tenants. In previous years, we have launched various maintenance and improvement schemes, such as the Total Maintenance Scheme, the Estate Improvement Programmes and the lift addition programme, which have been very well received by our tenants.

Improving pedestrian linkages

     As you may have gathered by now, I enjoy getting out of the office to meet people and listen to their views. I regularly visit our estates to keep abreast of the latest progress of our improvement works. In my recent visits to some PRH estates, I saw for myself how important it is to provide pedestrian linkages, in particular between different levels within estates situated on hill slopes. The HA is committed to enhancing the pedestrian access in PRH estates as necessary to cater for the need of tenants requiring barrier-free access.

     In 2008, we launched a programme for the installation of additional lifts, escalators and footbridges in 29 existing PRH estates involving some 70 lifts, six escalators and 18 external footbridges. These enhancement works have been making good progress and I am optimistic that the works will be completed this year as scheduled. We will continue to improve our facilities in the estates and will plan ahead for these facilities in the new PRH projects.

Improving the barrier-free access and facilities

     The HA has always kept in mind the special needs of some of our PRH tenants, notably the elderly and disabled persons. We are committed to providing "people-oriented" housing facilities to ensure a better environment for our tenants to live and shop. We have made a great deal of effort in recent years to enhance the barrier-free facilities of our estates and shopping centres to facilitate physically impaired persons to better integrate into the community. I am very proud that our efforts have been recognised. Recently, the Yau Lai Shopping Centre was honoured in the Hong Kong Barrier Free Shopping Malls Appreciation Award organised by Hong Kong Rehabilitation Power for the wide range of barrier-free facilities in the shopping centre. This award means so much to us. We will continue to provide suitable facilities in all the HA's managed premises.

Enhancing the viability of HA's retail and commercial facilities

     Apart from the residential units, we also must have regard to the viability of our retail and commercial properties. We have formulated a five-year rolling programme to prioritise the asset enhancement of our retail facilities so as to increase their competitiveness and make them more viable. We have earmarked On Kay Court commercial centre for asset enhancement through major improvement works and the re-designation of trade mix, which will be conducted by phases for completion in 2015. Improvement proposals for other shopping centres in Pok Hong, Wah Fu, Ping Shek Estates and Lung Poon Court are also under detailed planning or at the technical study stage.

The Domain

     Before I leave this topic, I would like to say a few words on our brand new mega shopping centre in Kowloon East, the Domain. The concept agreed by Members is to provide tenants and shoppers with an integrated shopping and leisure experience, and to promote green living. I am glad to report that the construction work on this project has been progressing well and it is expected the works could be completed by the second half of this year as scheduled. I am really looking forward to the opening of the Domain and I firmly believe that it is set to become a most exciting new attraction in the region.

HA to maintain "people-oriented" approach in estate and tenancy management

     I have attempted to touch on a wide range of the works and achievements that the HA has made on the "hardware" side. In fact, the HA has also devoted much effort to the "software" side of work. We believe that quality living would not be complete without a safe, decent and harmonious environment. I would like to take the next few minutes to highlight some of our efforts made in this respect.

Implementation of Marking Scheme

     To achieve a clean, decent and tranquil living environment for all, it is important for us to adopt appropriate rules and regulations which have to be fair and objective. One of the good examples is our Marking Scheme for Estate Management Enforcement in PRH Estates implemented since 2003. The Marking Scheme aims to promote civic responsibility and to encourage tenants to rectify malpractices which may affect the environmental hygiene of their living spaces.

     Following the adoption of the Marking Scheme, it is fair to say that the environment and hygienic conditions of our PRH estates have been significantly improved. Indeed, the Marking Scheme has received wide recognition and support from a vast majority of our tenants. The Scheme is an effective measure to deter tenants from jeopardising environmental hygiene or disrupting estate management. We will closely monitor the implementation of the Marking Scheme and will review its operation from time to time taking into account the overall condition of the community and tenants' aspirations to ensure that the policy keeps abreast of time.

Protecting our PRH tenants and staff against violence

     I was very unhappy about a recent incident at our Lok Fu Customer Service Centre where a disgruntled PRH applicant threatened to kill herself with a knife. I know this incident heightened concerns among our staff about work safety. I must say that while it is possible that some people may not be pleased with some of our policies, it is totally unacceptable for them to resort to violence to themselves or others. There are numerous legitimate ways to deal with complaints. Attacking staff or threatening to harm oneself is not one of them. I wish to emphasise that we will not tolerate any case of violence and we will try every possible means to protect our staff and tenants from workplace violence and abusive behaviour. The safety of our tenants and staff is our utmost concern.  

     With a view to further enhancing our staff's safety, we have set up a working group to draw up appropriate measures and develop layout plans to enhance workplace security. I am pleased to note that the improvement works for the enquiry counters and interview rooms in our Lok Fu Customer Service Centre have been completed, and the security enhancement works in other estate offices and workplaces open to the public are making good progress. We have also strengthened our staff training so as to provide our front-line staff with the necessary techniques to avoid confrontational situations and protect themselves.

     While we may not be able to prevent entirely confrontations in the workplace, we will endeavour to ensure that our colleagues are as well equipped as possible to deal with them so as to reduce the risk of a tragic outcome.

Enhancing site safety

     Of course there are other safety issues we must deal with on a daily basis. I want to highlight, in particular, the fact that the HA is committed to safety on all our sites. We have established a comprehensive system and work culture to promote site safety and health. Recently, we launched the Housing Authority Site Safety Website which may be accessed through our HA/HD Website to provide an open and transparent channel for promoting safety messages via online web technology.

     Through our continuous efforts to enhance safety awareness on-site, the accident rate per 1 000 workers in our sites has been significantly reduced from about 55.8 in 2001 to 9.0 in 2011 for new works and from about 56.7 in 2001 to 7.3 in 2011 for maintenance works. These figures are far below those of the local construction industry. Zero incidents on HA work sites remains our goal and even one accident is too many. I urge our working partners and stakeholders to join us in providing a safe working environment, and our workforce to establish safe working habits, as site safety is a shared responsibility.

Tackling tenancy abuse

     I share Ms Tennessy Hui and Mr Winfield Wong's concerns over the need to tackle cases of tenancy abuse. In fact, we do take firm action against tenancy abuse to ensure the rational and effective use of our PRH resources. Our front-line estate management staff members will verify tenants' occupancy status through their day-to-day tenancy management work, and will carry out at least one home visit in every two year period to all 720 000 PRH tenants. Should there be any doubt about the tenants' occupancy position, we will conduct further investigations. In fact, we will also carry out in-depth investigations on all complaints as well as cases drawn by random selection and referrals from members of the public. Thanks to the concerted efforts of my colleagues, over the past five years, we have investigated an average of about 8 000 cases of suspected tenancy abuse every year. There were on average about 400 confirmed tenancy abuse cases each year that resulted in the recovery of PRH flats. I can assure Members that we will not tolerate any abuse of PRH resources and will try our very best to ensure our limited PRH resources are allocated in an equitable manner for those who have genuine housing needs.

HA to maintain effective communication with key stakeholders and tenants

     For an organisation as large and diverse as HA/HD, it is of utmost importance to establish a good rapport with our tenants, business partners and staff so as to allow for better understanding of one another's views on issues with common interests. Over the years, we have established various communication channels to keep our stakeholders duly informed and involved in our work.

New look of HA/HD's website

     To ensure the public, our sitting and prospective tenants and stakeholders have easy access to updated information and news about us, our website plays an increasingly important role. Tenants and members of the public may easily access current PRH policies and updated housing data while our WL applicants could easily check on their application status by comparing their application numbers with those under investigation as well as the highest numbers that have recently accepted PRH offers.

     With a view to providing even more user-friendly functions and features for different user groups, our website has recently been revamped. With the streamlining of the site structure and improvement in navigation, our users can locate the information they need more easily. To facilitate different ethnic groups to access necessary PRH information, selected content is also available in various languages including Hindi, Nepali, Thai, Bahasa Indonesia, English, etc. I am pleased to note that the revamped website has been very well received and has attracted an average of 7 million hits per month! We will continue to enhance our website to offer better services and a more pleasant user experience to our tenants and other stakeholders.

Director's blog

     To foster interaction with our PRH tenants and the public, I started a blog two years ago. It allows me to set out some of my thoughts and ideas over different housing matters and share my views after visiting to PRH estates. So far, I have made more than 40 postings on my blog and the overall feedback is quite positive. I want the blog to be a dialogue and not a monologue. It will be very encouraging to me if readers or tenants could leave me a message or give me some comments or suggestions. I endeavour to respond as far as possible.

HA to continue to advance and excel

     While the HA remains in a healthy financial position in the short to medium term, we are fully aware of the various challenges ahead. The rising trends of construction material costs and the volatility in financial markets are certainly a potential threat to the HA's expenditures and investment returns. The increasing demand for PRH and the associated financial implications as well as stringent planning and building requirements are just a few of the other challenges ahead. My colleagues and I will continue to keep a vigilant watch over the situation.

The 60th anniversary

     On Christmas Day in 1953, a fire in Shek Kip Mei destroyed thousands of homes of many low-income people, leaving them homeless. This tragedy directly gave birth to the public housing development programme in Hong Kong. Over the years, the public housing programme has been one of the keystones to the stability and prosperity of Hong Kong, and an anchor of our public administration for more than half a century. It provides millions of people with a safe, stable and decent shelter, which allows them to pursue their "Hong Kong dream". It is no exaggeration that our PRH is one the important cradles of many success stories. The public housing programme will celebrate its 60th anniversary in 2013, Members have agreed that we should mark this milestone. We are working on a programme which should allow tenants and the public to get involved and will consult Members in due course.

     Before I close, I have been asked to say a few words of appreciation to our Chairman on behalf of HA Members and HD's colleagues. Eva, at the Annual Special Open Meeting, many Members expressed their gratitude to you for your work in the HA. Having worked closely with you over a number of years (and not just in this post), I feel truly privileged to have been given the opportunity to do so again here. Your leadership has been exemplary. Your wise counsel has been invaluable. Your compassion and empathy for colleagues and tenants alike has been unbounded. Your sense of humour has been infectious and effective in helping us all to keep things in perspective. You leave the HA stronger, more effective and more certain of its role than ever. You have set clear directions for our work and have been diplomatic yet firm in your guidance of the HA.

     In years to come, I know you will look around Hong Kong and see examples of quality housing that you brought about during your tenure as Chairman of the Housing Authority. May I take this opportunity to thank you and to wish you every success in all your future endeavours.

Ends/Monday, June 25, 2012
Issued at HKT 20:42

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