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Main obstacles in increasing house supply

Updated: 2013-01-24 05:51

By Eddy Li(HK Edition)

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In the first Policy Address delivered by CE Leung Chun-ying last week, he devoted a lot of attention to the supply of housing and lands. Using more than 6,500 words and 42 paragraphs on related issues, the policy address listed all the new government's policies, notions and objectives with regard to housing, emphasizing that "the top priority of the current government is to tackle the housing problem".

Many short-term, medium-term and long-term plans were put forward in the policy address. It is quite evident that the HKSAR government is making every effort to find dwelling places for the people of the city, to fulfill the policy objectives for housing: 1) assist grassroots families to secure public housing, meeting their basic needs; 2) assist the public to make choices concerning accommodation according to their affordability and personal circumstances, and to encourage those who possess their resources to buy their own homes; 3) provide subsidized home ownership flats on top of PRH so as to build a progressive housing ladder; and 4) maintain the healthy and steady development of the private property market, with priority to be given to the needs of Hong Kong permanent residents.

Main obstacles in increasing house supply

The goal always seems appealing, but whether the objectives are capable of being realized remains in question. As far as I'm concerned, to implement the plans, the government will have to encounter two major obstacles - the popular will and bureaucracy. The crux of the problem is just as mentioned in the policy address, that "we have adequate funding, sophisticated technology and feasible plans for increasing land supply. The only question is whether we can stand united with one vision".

To "stand united with one vision" depends mainly on the popular will, which involves the opinions of 18 district councils, of environmental organizations and of some other social groups. In the past, too many different voices bewildered the government leadership, so that administration became impeded. From my view, however, the unity also required the cooperation among legal operation departments or official organizations, for the reason that the beneficial policies would be smoothly and successfully implemented if the bureaucracy in some departments or organizations had been brought under rein.

Let's take a look at a real case. Because my company owns property in the Yau Tong area, I have a general understanding of the place. To my knowledge, there is a piece of land of more than a million square feet, which, as early as 1993, was approved by the government for comprehensive development. If ever it were successfully established, the area would include residences, shopping malls and hotels, providing more than 5,000 residential units.

The truth is, the plan has been lain aside for two decades and that piece of land has stood empty all these years. The Town Planning Board has not yet given a final approval or done anything to it. Without impediment from the public at large, with positive expectations of more than 90 percent of stakeholders, it's hard to imagine how a plan in the public interest such as this could be delayed for decades. If this anecdote suggests a case of waste of resource, then who is to blame?

Therefore, if the HKSAR government truly wants to create harmony between the public and the bureaucracy, the coordination and cooperation among different departments is crucial. Instead of behaving in a sluggish manner, government departments should be willing to play a supporting role in carrying out government policies and address the needs of the people.

The author is vice-president of the Chinese Manufacturers' Association of Hong Kong.

(HK Edition 01/24/2013 page3)

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