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11 September 2001
News Stories:August Headlines

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1. Chief says sorry for mainland homes plan

2. When a borderline home plan falls down

3. Legco panel blasts officials on flats freeze

4. Housing meeting crumbles into chaos

1. Chief says sorry for mainland homes plan

The head of the Housing Society said yesterday a controversial proposal to build subsidised homes in Guangdong had been shelved, and apologised for causing "unnecessary" confusion. Chairman Timothy Chung Shui-ming, who is also an Executive Council member, said he regretted the controversy, but insisted the idea to build homes for Hong Kong people on the mainland had not been dropped because of government pressure. Mr Chung was speaking after the decision was made during an emergency meeting of the society's executive committee. He had earlier cut short a mainland trip after the proposal was attacked by government officials. "I'm regretful for causing some unnecessary misunderstanding over the Government's housing policy," said Mr Chung, who unveiled the idea on Wednesday. "The Government has taken a clear stance on this, that we should not proceed with the study as it is not advantageous to do so." But he added: "I personally have not felt any pressure from the Government. Listening to the Government's opinions does not mean we have lost our independence or autonomy." Mr Chung said the matter would not harm his, or the society's, relationship with the administration. The proposal could be revived in five years if circumstances changed. The Government welcomed the decision, saying it "reflects the Housing Society's full understanding of the community's concern over the issue".

[Source: SCMP, 11 September 2001]

2. When a borderline home plan falls down

"It is the most spectacular farce a government can produce," said housing affairs critic Ho Hei-wah, referring to the clash between the quasi-governmental Housing Society and the Government over the society's now-aborted proposal to enter the mainland property market. Some analysts say this episode, which has seen unprecedented high-profile criticism by the Tung administration of a plan put forward by one of its own Executive Councillors, has also indicated the diminishing political relevance of the quasi-cabinet. Property stocks were put in the firing line - the Hang Seng properties sub-index shed 3.69 per cent last Thursday, prompting the Government to hastily release a statement that night expressing disapproval of the plan. Political analyst Professor Lau Siu-kai, associate director of Chinese University's Institute of Asia-Pacific Studies, said the saga showed that Executive Council members had become more "politically irrelevant" in the Tung era. "Either the councillors' advice has not been listened to or they have simply been kept in the dark about government policies," said Professor Lau. "As the close advisers of Mr Tung, they do not seem to fully understand what Mr Tung is thinking. Professor Lau also said senior housing officials seem to have been sidelined in the high-level decision-making process on such issues, which he believed had now been centralised in the hands of Mr Tung, Mr Tsang and Financial Secretary Antony Leung Kam-chung. Dr Li said: "It seems the Government's housing policies are in a mess. We have too many different organisations responsible for housing. It is not always clear who is responsible for what." The Housing Authority's main responsibility is for public housing. It builds low-rental flats for needy families and runs the now suspended Home Ownership Scheme to build flats to sell to middle-income families. Evolving from the former Resettlement Department in the 1950s, the authority is a statutory body, with the Housing Department as its executive arm. By contrast, the Housing Society is a non-profit-making organisation. It was established in 1948 to help meet the needs of grassroot groups at a time when public housing was not a high priority for the then-colonial government. In 1951, it was given legal status as a corporation and has the power to develop and invest in property in Hong Kong. Like the Housing Authority, the society is also granted cheap land by the Government to build low-rental flats for lower-income groups. Modelling itself on the Housing Authority's Home Ownership Scheme, the society also runs a scheme to sell flats to middle-income families. Since the late 1960s, it has expanded its remit to help the Government with urban-renewal projects. The society took a bigger role in housing amid the overheated property market of the 1990s, when it was appointed by the Government to manage two schemes to build upmarket flats and offer housing loans to so-called sandwich-class families - the higher-income group who were too rich to apply for public housing but not rich enough to buy private flats. Both schemes have since been scrapped, following the collapse in property prices which made private flats more affordable. The society is now managing another government-housing loan scheme - the home-starter scheme - for first-time home buyers. But Mr Chung yesterday denied that the society's role was diminishing and said it still needed to cater to the housing needs of the elderly. He added the society would study entering the mainland market at a later stage. Co-ordinating the public and private housing sectors and formulating overall housing policies for Hong Kong should be the job of yet another body - the Government's Housing Bureau. Mr Tung's now-scrapped target of building 85,000 flats a year was set after a study by Executive Council convenor Leung Chun-ying. Mr Leung was appointed by Mr Tung in 1997 to spearhead a new direction in housing policy. Dr Ivan Choy Chi-keung, of City University's division of social studies, said the housing-policy formulation process was so confusing that people could not easily follow what the Government was doing. He called for urgent reform. It is against this background that a review is being conducted by the Government. Headed by the Chief Secretary, the review is looking into the roles of the Housing Authority, Housing Society, and Housing Bureau in the formulation of housing policies and the relationships between these different bodies. It was ordered by Mr Tung last year at the height of the piling scandals and was supposed to be completed by April this year. But the work was disrupted by the resignation of Anson Chan Fang On-sang as chief secretary.

[Source: SCMP, 11 September 2001]

3. Legco panel blasts officials on flats freeze

Legislators yesterday passed a resolution condemning the Government for not consulting Legco and the Housing Authority before announcing a decision to freeze sales of subsidised flats for 10 months. At a stormy special housing panel meeting, one lawmaker walked out after demanding the resignation of Secretary for Housing Dominic Wong Shing-wah. It also emerged at the meeting that Housing Authority members could block the plan at a meeting next month after Mr Wong pointed out that Chief Executive Tung Chee-hwa had not used his legal powers to impose the moratorium. He said at the meeting that Mr Tung had not used Section 9 of the Housing Ordinance, which allows him to give direction to the authority "as he thinks fit, either generally or in any particular case". Ip Kwok-him, of the Democratic Alliance for the Betterment of Hong Kong, said the Government had "disrespected" the authority. "I would not be so angry if Tung had used his power under Section 9 because he could have done whatever he wanted and we would have to accept it. But why are they not using it? I definitely will follow up on this matter," he said. It is understood most authority members back the freeze. The authority's home ownership committee will have a brain-storming session on the issue on Thursday and a full council meeting is due on October 22.

[Source: SCMP, 11 September 2001]

4. Housing meeting crumbles into chaos

The government's housing policy deteriorated from shambles into a farce yesterday with calls for the Secretary for Housing to resign, a walk-out during a meeting of the Legislative Council's Housing Panel and a backdown by the Housing Society over plans to build flats in the mainland. The Secretary for Housing Dominic Wong Shing-wah bore the brunt of the legislators' fury as he tried to explain why the government had failed to consult the Housing Authority and lawmakers over the decision to freeze the sale of Home Ownership Scheme (HOS) flats. Frederick Fung Kin-kee, chairman for the Association for Democracy and People's Livelihood, urged Mr Wong to resign if the property market did not improve after the 10-month freeze. He later walked out in disgust, in the middle of the meeting, arguing that the authority's autonomy had been undermined and in protest at Mr Wong's failure to accept his 10-month deadline. ``The government wants to teach the authority a lesson for not surrendering to property developers,'' he said. Democrat Szeto Wah mocked the government by quoting Premier Zhu Rongji's remark on Hong Kong last week, when Mr Zhu said: ``We can't always remain at discussion without decision, decision without execution.'' Mr Szeto sneered: ``This is in complete contrast to what Premier Zhu said about Hong Kong being been keen on `discussion without decision'.The government now made a decision without discussion.'' Frontier legislator and unionist Lee Cheuk-yan also waded into the debate, saying the government lacked the power to intervene in the Housing Authority, which enjoyed autonomy under the Housing Ordinance. But Mr Wong denied the government had adopted a ``high-handed'' attitude. ``The housing policies have always been decided by the government. The Housing Authority is only the executive organisation ... therefore the Housing Authority should not overrule any government policy,'' he said. Vice-chairman of the Democratic Alliance for the Betterment of Hong Kong (DAB) and Housing Authority member Ip Kwok-him agreed that the government had shown no respect for the authority in making its decision. ``I am worried that the suspension might serve as a stepping stone for its total scrapping,'' he said. Mr Wong responded by saying the Housing Authority members had other formal channels to express their opinions, including the authority's meetings, which were attended by officials from the Housing Bureau. However, he still failed to sway the majority of the legislators who later passed a resolution, by six to five, condemning the freeze and the lack of consultation. DAB's Chan Yuen-han, who had severely criticised the government, did not vote. In a separate development, the Housing Society caved in to pressure from the government and announced yesterday it was abandoning plans to build flats on the mainland. The announcement by chairman Chung Shui-ming at the end of a two-hour emergency meeting of the society's executive committee, came just five days after the plan was made public. Mr Chung said the plan was scrapped because of strong opposition from the public and the government, not because it violated the society's constitution. Despite insisting the plan was part of normal business expansion, Mr Chung expressed deep regret over the ``misunderstandings it has caused over the housing policy''. Asked whether the backdown was a surrender to government pressure, Mr Chung replied: ``I personally did not feel any pressure at all. ``As the society has made its opinion very clear, there is no point in pursuing the plan in this stage. It will not benefit anyone to continue ... because it does not meet the public's expectations of the Housing Society.'' He rejected a warning by Chief Secretary for Administration Donald Tsang Yam-kuen that the plan violated the society's constitution, which requires it to serve only the Hong Kong public. ``I don't see the society restricted from serving the local community with services outside Hong Kong,'' he said, adding the plan might be resurrected in a few years' time. Mr Chung admitted the government's strong response may have been prompted by a lack of communication, adding that he was unable to explain the idea to officials because he began a mainland tour a day after he revealed the plan to the media last Wednesday. But the incident did not hamper the close working relationship between the society and the government, he said. A government spokesman welcomed the decision, saying it reflected the society's understanding of the community's concern. Ho Hei-wah, director of the Society for Community Organisation, said the pressure group was not opposed to the proposal of ``going north''. ``What we oppose is the society's intention to be a cross-border property developer,'' said Mr Ho, adding that he supported building subsidised housing for elderly and low-income families on the mainland. Yesterday's decision was endorsed by 12 members of the Housing Society's executive committee, one of which was the Secretary for Housing. A Chinese University of Hong Kong survey in June this year found that about 23.5 per cent of the 1,009 respondents expressed a desire to buy a flat on the mainland in two years. A further 12.6 per cent already owned a mainland flat. Meanwhile, Chinese University Professor Lau Siu-kai warned the halt to HOS sales, which by-passed the legislature and the Chief Executive's think-tank, illustrated there was a process of disintegration in Tung Chee-hwa's ruling alliance. He said the incident revealed chaotic government policies. ``Our government has left out the legislature, the land and housing committees and its top aides in deciding to put a halt to the HOS. There is serious damage [here] resulting from such a concentration of power, which has eroded people's confidence very much,'' Professor Lau said, adding that Mr Tung had dealt an embarrassing blow to Mr Chung and Mr Cheng. Professor Lau said while the long-term benefits of halting sale of the HOS had yet to be seen, the shortcomings were already being seen. ``We can't see the property price has been improved or people's confidence been restored. But [this] has damaged the position of some statutory bodies and people.

[Source: HK-iMail, 11 September 2001]




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