I now turn to housing. There is no field in which Hong Kong’s pressure of people has produced acuter problems or one in which the government’s response has been so vigorous or received such international acclaim; 1.6 million people have been housed at low rents in government housing estates. Many of the later estates provide good examples of a solution to Hong Kong’s particular problem of living at densities higher than anywhere else in the world. Most of the larger squatter colonies have disappeared. Much of the aging and dilapidated pre-war tenement property has been replaced in the process of private development. There has been some thinning out of over- crowding in old properties, and the rise in population in Kowloon and Hong Kong Island has been halted and slightly reversed. But in spite of this effort the problem still remains; 300,000 people still live in squatter huts or temporary housing. Many units in resettlement estates are badly overcrowded, or have no separate wash places or lavatories. It is estimated that a further 310,000 people would need rehousing if all of those in shared private flats and tenements were to have a self-contained home, and few of these can afford the rents asked by private landlords. It is my conclusion that the inadequacy and scarcity of housing and all that this implies, and the harsh situations that result from it is one of the major and most constant sources of friction and unhappiness between the government and the population. It offends alike our humanity, our civic pride and our political good sense. Honourable members might agree that in this city of rising standards and rising expectations it is not a situation we can accept indefinitely. Nevertheless it exists and will continue to exist unless we are prepared to take determined action over a considerable period.

The Housing Board and the government departments concerned have therefore drawn up a plan. For planning purposes a target time is necessary, if only because any such plan must also provide for the annual natural growth of population. The target taken, which I repeat is as a basis for calculation, is 10 years and has as its objective to build on such a scale that, with the contribution of the private sector, there will be sufficient permanent self -contained accommodation in a reasonable environment for every inhabitant of Hong Kong. Such a target, if achieved, would lead to the virtual disappearance of squatter areas, eliminate overcrowding and sharing in both private and public housing, and in addition provide accommodation for those who have to be rehoused in consequence of development schemes and other situations where housing is offered to the homeless or unfortunate, and would also keep pace with the natural expansion of the population. Such a target could be achieved, even in a planned period of 10 years, if we were to build steadily at about the rate of completion in the best years hitherto; that is to say at the rate of about 180,000 personal units a year; the total requirement for public housing, in addit ion to the contribution of the private sector in the same period – which would be vital – is to house 1.8 million people. The rate of building would of course have to be kept flexible to take account of the resources available as year succeeded year.

The total cost of developing sites and building housing for this number of people, even allowing only 35 sq. ft. per person at present day prices, would amount to the formidable sum of $3,340 million. While the search for new sites in the urban areas will continue, obviously if environmental standards are to improve, the bulk of the new housing must be provided in the new towns in the New Territories – the complex of Tsuen Wan, Tsing I and Kwai Chung, Sha Tin and Castle Peak.

For such a programme to succeed and to be acceptable to the potential inhabitants, three things seem to me essential. First, good communication with the old urban areas. For Sha Tin this means a four -lane highway and tunnel and double tracking the railway to provide a 10-minute service. For Castle Peak it means a completely new motor road from Tsuen Wan.

Secondly, the housing in the new towns must be accompanied by a full ration of what is essential to modern life: medical, and secondary as well as primary educational facilities, parks and play- grounds, police stations, markets, fire and ambulance stations, community centres and much else. Thirdly, there must be work, and so sites for private commercial and residential development. These towns in fact must be built as a whole. We have taken the first steps in this direction in the Lek Yuen estate at Sha Tin and in the third stage of the Lei Muk Shue estate at Kwai Chung. Quite apart from the expansion of the main new towns in the New Territories, housing is also required for the rural areas and smaller New Territories townships, and also for boat squatter areas and for those who wish to live ashore. Plans are therefore in hand to provide a number of estates in these more remote areas. Although the number to be housed is only 30,000, it is a significant step that public housing is to be provided in places such at Tai O where nothing has ever been done in this respect before.

It will be clear to honourable members that, quite apart from the financial aspects of such a programme, a massive administrative and professional effort will be required and that a high degree of efficiency and co-ordination will be essential in the planning, management and construction of housing under the new programme. While the different authorities, boards, organizations and departments, operating in this field have all done sterling work, and for which Hong Kong has good reasons to be grateful, I believe that they would be the first to agree that this fragmentation of effort does not make for the most efficient use of our resources. Indeed it is apparent that in the past the housing programme as a whole has suffered from the absence of unified control and administration. To give the new programme the support and thrust which it deserves we therefore propose to make a fresh start. What we propose is to vest in a single body the powers and functions that are at present fragmented, that is to say those of the Housing Board; those of the Urban Council and the Commissioner for Resettlement under the Resettlement Ordinance; and those of the Housing Authority under the Housing Ordinance. We propose to associate with this single body a unified Housing Department. This will be responsible for planning, administration and construction - in co-operation of course with the PWD - of all public housing in Hong Kong and also for all the duties hitherto carried out by the Resettlement Department and the staff of the Housing Authority.

We have given much thought to what the new single body should be and we have concluded that it should be the Housing Authority. Under the proposed new arrangements the authority will assume responsibilities which are quite new, colony-wide and of vastly greater financial significance than hitherto. There will have to be some adjustment and widening of unofficial membership to reflect this new situation. Room will also need to be made for officials to be members in order to achieve the necessary degree of interdepartmental co- ordination. On the other hand there is obviously a limit to the size of a body that will be capable of giving the necessary direction with the necessary speed. Urban councilors have done fine work as members of the Housing Authority, of which they and indeed all of us in Hong Kong have every right to be proud. But in the new situation I do not think that it will be practical, or even appropriate, that all 24 councillors should have places on the new authority. Though I am sure that because of their experience and interest Urban Councillors ought to be the biggest single group on it.

We will be introducing legislation which will spell out the details, and give effect to the other proposals I have outlined, so that they may come into force at the start of the next financial year. Your government is determined that this group of measures and the action that will follow, shall give new impetus to the solution of this 20-years-old problem.