January 17, 2013

Chief Executive CY Leung hopes to expedite the construction of flats without compromising their quality, to ease the housing problem.
 
Speaking on a radio phone-in programme today to discuss his maiden Policy Address, Mr Leung said the Government will take measures to increase land supply, like changing the use of government land to meet the target of keeping the waiting time for public rental housing to three years.
 
A caller asked Mr Leung to impose rent control due to the increasing cost of renting a flat. However, he said rent control might make it more difficult for tenants to rent a flat. He did not rule out introducing new measures to ensure the healthy development of the rental market.
 
Another caller wished the Government could reduce the daily quota of 150 one-way permits for Mainlanders; however, he said there is little room to reduce the quota.
 
Mr Leung said he noted the pressure caused by babies born to non-local parents on the community’s facilities, like hospitals, maternal and child health centres, and primary schools, saying he has implemented the zero-quota policy for expectant Mainland mothers whose husbands are not Hong Kong residents, to ease the problem.
 
Mr Leung said he is concerned about "imported inflation"; however, the situation is a difficult one to resolve due to the appreciation of the renminbi affecting Hong Kong and other places doing business and trade with the Mainland.
 
While reiterating the importance of the US-dollar peg to Hong Kong’s financial stability, he cautioned that any change to this policy should be carefully considered.
 
Mr Leung said the Financial Secretary will take into account inflation pressure on low-income families, and will consider measures to ease their burden in next month's Budget.