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The following is issued on behalf of the Hong Kong Housing Authority:
At the Housing Authority (HA) meeting today (January 18), Members endorsed the Corporate Plan for 2016/17, the 2015/16 Revised Budget and the 2016/17 Proposed Budget, and also noted the Financial Forecasts for 2017/18 to 2019/20.
In 2016/17, the HA will continue to focus its efforts on providing quality homes, promoting sustainable living, optimising and rationalising the use of public resources and enhancing the attractiveness of its commercial properties. Based on the above four main themes, the Corporate Plan covers a total of 50 key activities and 19 key performance indicators of the Authorityˇ¦s work in the year.
"The 2016/17 Corporate Plan is the platform through which the HA will direct its work and concentrate its efforts in the face of multiple challenges. The Government's latest housing supply target for the 10-year period from 2016/17 to 2025/26 comprises 200 000 public rental housing (PRH) units and 80 000 subsidised sale flats. To support the Government's housing supply target, the HA will endeavour to work with the Government to identify suitable sites for development of both PRH units and subsidised sale flats," a spokesman for HA said.
"In response to the incident of excess lead found in drinking water, the 2016/17 Corporate Plan has incorporated a new Key Activity to explore and implement measures to assure proper use of materials on site to safeguard fresh water quality. Site inspection procedures will also be enhanced for new works projects under the capital works category to ensure proper use of materials for all critical site works and installations," the spokesman added.
"We will also focus on enhancing safety in PRH estates and at HA workplaces, and making cost-effective use of resources," he continued.
The HA has projected in its budget and forecast exercise for the period 2015/16 to 2019/20 that it will have sufficient financial resources to meet its recurrent expenditure and implement its public housing construction programme and maintenance programme covered in the five-year period. Nevertheless, depleting at around $10 billion per annum, the HAˇ¦s cash and investment balance is projected to decrease significantly from about $67 billion in April 2015 to about $16 billion at the end of the forecast period in March 2020, mainly due to the projected increase in construction and operating costs. The total construction expenditure during the five-year budget and forecast period is projected to be $120.5 billion, while no rent adjustment for public rental housing is assumed. To achieve the public housing supply target, the HA will come under increasing fiscal pressure in the longer term and the Government's funding support to the HA will become necessary. The Government has set aside about $45 billion for further injection into the Housing Reserve last year. Together with the initial injection and interest accrued, the Housing Reserve measures a total of about $74 billion, which fully demonstrates the Government's commitment to financially supporting the HA to meet the public housing supply target.
"The HA will continue to conduct the annual rolling five-year budgeting process and assess its financial position and future funding requirements. The HA will keep close dialogue with the Government. When the two sides have reached consensus on the quantum and timing of funding injection, the Government will, at an appropriate time, seek the approval of the Finance Committee of the Legislative Council for funding to be drawn from the Housing Reserve to support the public housing development," said the spokesman.
At today's meeting, HA Members also expressed their views on the Final Report submitted by the Review Committee on Quality Assurance Issues Relating to Fresh Water Supply of Public Housing Estates (Review Committee) on January 8 this year.
Members noted the Review Committee's views that the incident of excess lead found in drinking water was, to a large extent, caused by a "lack of awareness" in the industry, as well as within the HA and the Housing Department (HD). Such a "lack of awareness" within the HA and HD refers to them not being aware that, although the contracts had already prohibited the use of leaded solder, the risks of presence of lead in solder and of such presence leading to excess lead in water still existed. The HD has the expertise and experience in devising and using quality assurance tools or measures for public housing construction in aspects where high risks have been identified. However, as the HD had not been conscious of the risks of presence of lead in solder and of such presence leading to excess lead in water, it had not applied to such risks its quality assurance tools suited to high risks.
Members noted that the Review Committee already recommended measures in its Report on Interim Findings, including requiring the main contractors to properly manage their plumbing sub-contractors. The Review Committee has made additional recommendations in its Final Report, including requiring the HD to verify soldering materials upon delivery to site, and to also check soldering materials when inspecting pipe joints. Members noted that the Review Committee identified, in the course of its review, certain inadequacies at the regulatory industry-wide levels, and that it made some recommendations in relation to these aspects.
The Chairman of the HA, Professor Anthony Cheung Bing-leung, said that he accepted the Review Committee's Final Report.
"The 'body check' conducted by HA is very useful, as it allows us to understand the inadequacies in the quality control mechanism, such that we can make improvements. The HD will actively follow-up and implement the enhancement measures recommended in the Final Report, and comply with the Review Committee's recommendation on keeping in view the latest standards and requirements stipulated by the relevant authorities in relation to 'lead in water' and other aspects, the latest industry-wide developments on the understanding of risks, and the future findings and recommendations of the independent Commission of Inquiry established by the Government," he said.
Ends/Monday, January 18, 2016
Issued at HKT 18:40
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