The Housing Authority’s fiscal balance may register a significant decrease from $67 billion in April 2015 to $16 billion in March 2020 due to a projected increase in construction and operating costs, thereby necessitating government funding to help realise its public housing supply target.
In the financial forecast for the period 2015/16 to 2019/20 tabled at the authority’s meeting today, it is projected total construction expenditure for the five-year budget between 2015/16 to 2019/20 will be $120.5 billion, while no rent adjustment for public rental housing is assumed.
This is despite its projection of sufficient financial resources to meet its recurrent expenditure and implement its public housing construction programme and maintenance for this five-year period.
It will continue its annual rolling five-year budgeting process and assess its financial position and future funding requirements, the authority said, adding that it will keep close dialogue with the Government.
The meeting also endorsed its corporate plan for 2016/17 that covers 50 key activities and 19 key performance indicators to focus efforts on providing quality homes, promoting sustainable living, optimising and rationalising public resources use and enhancing the attractiveness of commercial properties.
The Government's latest housing supply target from 2016/17 to 2025/26 comprises 200,000 public rental housing units and 80,000 subsidised sale flats.
The authority will endeavour to work with the Government to identify suitable sites for development of these units and flats.
On the excess lead in drinking water issue, the 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.
The meeting also covered 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.
The committee's views are that the lead-tainted incident was to a large extent caused by a "lack of awareness" in the industry, within the authority and the Housing Department.
The authority and department were not aware that, although the contracts had already prohibited the use of leaded solder, the risk of the presence of lead in solder and of such presence leading to excess lead in water still existed.
The authority’s chairman Professor Anthony Cheung said he accepted the Review Committee's Final Report.
"The 'body check' conducted by authority is very useful, as it allows us to understand the inadequacies in the quality control mechanism, such that we can make improvements,” he said.
The authority will implement enhancement measures recommended in the report and comply with the Review Committee's recommendation on keeping in view the latest standards and requirements stipulated by authorities regarding 'lead in water' and other aspects.
It will also observe 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 added.
Speaking to reporters after the meeting, Professor Leung said if the conduct of public officials is called into questions by an independent commission of inquiry established by the Government, it will follow up strictly in accordance with established procedures.
