The directorate support in the Housing Branch (HB) is inadequatedirectorate support to cope with the increase in the complexity and volume of work arising from the implementation of the recommendations of the Long Term Housing Strategy (LTHS) Review.

PROPOSAL

2. We propose to strengthen the directorate structure of HB by the creation of -

(a) one permanent post of Administrative Officer Staff Grade C (D2)(AOSGC)(D2) to head a new Housing Strategy Division; and

(b) one permanent post of Chief Planning Officer (D1)(CPO)(D1) in the Housing Strategy Division to provide professional planning support on strategic planning issues.

JUSTIFICATION

New responsibilities

3. We have recently 1996 we completed a review of the LTHS published in 1987. The review has identified a number of changes in policies and priorities necessary to achieve our housing goals for the period up to March 2006. Upon the expiry of the public consultation exercise now under way, we will reach final decisions on the recommendations and formulate a new LTHS for implementation. Government released a consultative document setting out its proposed LTHS for the period up to March 2006. The Government will review its recommendations in the light of public views expressed in the consultation exercise now underway. In the meantime, it is necessary for the Housing Branch to prepare for the detailed planning and implementation of the new LTHS, once final decisions have been reached and promulgated.

4. The success of the new LTHS will depend much upon the careful planning of housing delivery programmes, the continuation of adequate supply of land for housing development, the close monitoring of progress of housing projects, and the regular review of performance duringin the course of the implementation process. As the policy branch with overall responsibility for housing matters, HB will assume a central and strategic role in the new LTHS. This calls for the provision of adequate management and staff resources aton both the directorate and non-directorate level for HB to carry out the new initiatives. At the present, the branch ispermanent Divisions of the Housing Branch are fully committed to carrying out their its on-going responsibilities for the day to day formulation, supervision and delivery of relevant housing policies and programmes and will not be able to take on the additional duties without strengthening its management structure and staff resources. Furthermore, whilst HB is currently supplemented by supernumerary resources, these resources are for the purpose of the LTHS will lapse soon after the completion of the review. Without the benefit of additional permanent resources, the branch will not be able to accomplish its tasks under the new LTHS.face important new challenges arising out of the recommendations of the LTHS Review -

(a) the Private Housing Division must seek to encourage greater private sector investment in housing. This will require both close dialogue with developers and careful analysis of the constraints upon investment and supply;

(b) the Public Housing Division must seek to ensure greater equity in the allocation of public resources. This will require close liaison with the Housing Department on measures to ensure that those who are allocated public rental housing are in genuine need of subsidy, and to encourage better off tenants to move out of public rental housing; and

(c) the Project Management Division must seek to speed up the supply of housing to meet forecast demand. This will require close cooperation with the Planning Department and Lands Department, in particular, to ensure the efficient processing of housing projects and related land transactions in the public and private sectors.

Role of the new Division

5. While. To provide the necessary directorate support and staff resources for implementing the new LTHS, we propose to establish a new Housing Strategy Division in HB. Following this, the three existing divisions, viz. the Private Housing Division, the Public Housing Division, and the Project Management Division, will continue to deal with the daily operation of existing programmes and policy responsibilitiesy of the branch, and the new division will focus on strategic issues critical to the success of the new LTHS. The existing and the proposed organisation charts and distribution of responsibilities are at are at Enclosures 1 to 4.

6. The main responsibilities of the Housing Strategy Division are detailed in the following paragraphs.

to ensure an adequate supply of land to meet forecast housing demand; and

(e) to service the proposed new LTHS Advisory Committee.

Copies of the current and proposed distribution of business are at Enclosure 3 and 4 respectively.

Co-ordinating implementation

7. The Housing Strategy Division will assume the central and strategic role in planning, programming, and co-ordinating functions and activities within HB and of the Government departments and other housing delivery agents new LTHS will require careful planning and coordination between the Housing Branch and the various government departments involved (in particular Housing Department, Planning Department and Lands Department) to ensure to ensure that the agreed new initiatives are introduced and followed through efficiently and effectively.

Reviewing performance

8. review of performance. The Housing Strategy Division will be responsible for measuring and reviewing performance against specific targets and underlying aims of the strategy from time to time during the implementation process. In the light of findings and assessments made in the review, the division will propose adjustments to policy that are necessary to meet the changing needs of the community.

9. In addition, the Housing Strategy Division will be responsible for undertaking a comprehensive interim mid-term review on the new LTHS to prepare for the rolling forward of the planning period beyond 2006. We expect to commence this exercise in 1999 for completion in 2001.

Monitoring changes in demand

10. In consultation with the Planning Department, the Housing Strategy Division will be responsible for the projection of projecting the overall and sectoral demand for housing. These projections will form an important part in the implementation process and will be critical to the success of the new LTHS which calls for regular review and adjustment in the light of changing circumstances. However, it is essential that the Housing Branch should be closely involved in this important exercise because the Branch has ultimate responsibility for achieving the goals of the new LTHS. In addition, the sectoral demand for housing is particularly sensitive and critical the formulation of the eligibility for assistance).

Ensuring an adequate supply of land

11. The Housing Strategy Division will play athe central role in the co-ordinating and monitoring of actions of the various Government departments, and in particular those for in their efforts to increasing the supply of land increase and speed up for housing development worked through the advancement of the supply delivery programmes of new land and supporting infra-structure, for housing and to the increasee of the permitted density of selected sites for housing development where appropriate.

Servicing the Advisory Committee

12. The Housing Strategy Division will be responsible for the preparation of submissions to a new LTHS Advisory Committee implementation of the earlier LTHS is that there is a need to adopt a comprehensive approach towards meeting the housing needs of the community. In 1994, the Housing Branch was established to coordinate government policy between the public and private sectors. The Secretary for Housing which is now in its inception stage. This new LTHS Advisory Committee, with both official and non-official participation, will oversee the implementation of the new LTHS, and will in particular -

(a) monitor and, where necessary, advise on adjustments to the new LTHS, and keep track of any changes to forecast housing demand and land requirements.

Additional Directorate Staff Resources

13. In view of the significant role and functions of tThe proposed Housing Strategy Division, we consider that its head will need to be headed by an officer of the appropriate seniority and authority in order to establish rapport and work effectivelycoherently with the directorate level staff of other Government departments. He shall be one possessing the managerial and administrative abilities necessary to meet the responsibilities for planning, co-ordinating and monitoring the progress of activities under a programme of works covering a wide range of issues. He will have to be well versed in the Government and committee functions, and be able to ensure the highest quality of submissions to the future LTHS Advisory Committee. Cognisant of the qualities and stature required of the incumbent, wWe therefore propose to create one permanent post of AOSGC (D2), departmentally designated as Principal Assistant Secretary (Housing Strategy) to head the new division and report to the Deputy Secretary of Housing. The job description of the post is at Enclosure 5.

14. In addition, we propose to create one permanent post of Chief Planning Officer (D1), departmentally designated as Chief Assistant Secretary (Housing Strategy) and to report to the Principal Assistant Secretary (Housing Strategy), to be responsible for the planning functions of the Housing Strategy Division in the professional context. Charged with duties to provide planning advice and support for the division. Reporting to the Principal Assistant Secretary (Hhousing Strategy),, the incumbent will need to work closely with the directorate and professional officers in other Government departments as well as establishing dialogue with developers and other non-Government housing delivery agents and analysts in the private sector. In the context of his professional planning input, he will have to lead analyses and research projects on housing supply and demand, and in particular the projection of overall and sectoral demand for housing, and provide planning support in technical submissions to the LTHS Committee. The job description of the post is at Enclosure 6.

FINANCIAL IMPLICATIONS

15. The additional notional annual salary taff cost at mid-point of this proposal at mid-point is-

	$	No. of Posts
Administrative Officer Staff Grade C (D2)	1,273,200	1
Chief Planning Officer (D1)	1,070,400	1
	2,343,600	2

The annual average staff cost of the proposal, including salaries and on-costs, is $4,436,172.

16. In addition, this proposal will necessitate the creation of three additional non-directorate posts of Administrative Officer, Personal Secretary I and Personal Secretary II at a notional annual mid-point salary cost of $1,001,520 and a full annual average staff cost of $1,373,220. We will create these posts through the normal Departmental Establishment Committee machinery.

17. We have included sufficient provision in the draft 1997-98 Estimates to meet the cost of this proposal and the non-directorate posts.

The Housing Strategy Division will consist initially of five staff - 19.The Secretary for Housing proposes that the new Housing Strategy Division should be created with effect from 1 April 1997. Sufficient provision has been included in the 1997-98 draft Estimates for the above posts. The creation of the non-directorate posts of the new Division will be processed in the normal manner for consideration by the Departmental Establishment Committee of the Housing Branch.

BACKGROUND INFORMATION

18. The Secretary for Housing has overall responsibility for public and private housing matters in Hong Kong. He is assisted in the exercise of his duties by one Deputy Secretary and four Principal Assistant Secretaries. Set up in November 1994, the Housing Branch is responsible, Gprovision of housing in the public and private sectors. It oversees the public housing programmes, monitors the operation of the private housing market, and facilitates the provision of sufficient land and infrastructure to meet forecast housing demand.

The key goals of the Governments housing policy are -

(a) to help all households gain access to adequate and affordable housing; and

(b) to encourage home ownership in the community.

In January 1997, the Government published a consultative document setting out the conclusions and recommendations of its review of the LTHS published in 1987. The review identified four priorities to help achieve the Governments key housing goals over the period up to March 2006 -

(a) to increase the supply of flats to meet forecast demand for public and private housing through the provision of land, and the monitoring and, where necessary, relief of other supply constraints;

(b) to maximise the contribution of the private sector to meeting our private and public housing targets;

(d) to ensure that public rental housing is provided to those in genuine need.

The public consultation period will end on 31 May 1997. Thereafter, the Government will review its recommendations in the light of public views expressed before reaching final decisions on the way forward.

18. In January 1997, the Government published a consultative document setting out the conclusions and recommendations of its review of the LTHS published in 1987. The review has identified four priorities to help achieve the Governments key housing goals over the period up to March 2006 -

(a) to increase the supply of flats to meet forecast demand for public and private housing through the provision of land, and the monitoring and, where necessary, relief of other supply constraints;

(b) to maximise the contribution of the private sector in meeting our private and public housing targets;

(d) to ensure the provision of public rental housing to those in genuine need.

19. The public consultation period will end on 31 May 1997. Thereafter, the Government will review its recommendations in the light of public views received with a view to implementing the new LTHS.

CIVIL SERVICE BRANCH COMMENTS

20. The Civil Service Branch supports the proposal to create an additional AOSGC post and an additional Chief Planning Officer post. The ranking and grading of the proposed posts are appropriate having regard to their duties and responsibilities.

ADVICE OF THE STANDING COMMITTEE ON DIRECTORATE SALARIES AND CONDITIONS OF SERVICE

21. The Standing Committee on Directorate Salaries and Conditions of Service has advised that the grading proposal for the posts would be appropriate if the posts were to be created.

Housing Branch
February 1997
(E5634/WIN99)

Enclosure 5 to EC(96-97)67 43
Duty List of PAS(HS)
AOSGC (D2)

(1) To co-ordinate the implementation of the policies and programmes contained in the Governments Long Term Housing Strategy (LTHS) between different delivery agents including the Hong Kong Housing Authority, Hong Kong Housing Society and relevant government departments;

(2) To review the performance of the LTHS by setting and monitoring performance measures for discussion and review by the Secretary for Housing, with the advice of the LTHS Advisory Committee.

(3) To review and revise the forecast of housing demand in consultation with Planning Department.

(4) To monitor the supply of public and private housing in consultation with Housing Department and Rating and Valuation Department.

(5) To ensure an adequate supply of land to meet forecast housing demand in consultation with Planning Department and Lands Department.

Enclosure 6 to EC(96-97)6754
Duty List of AS(HS)1
CPO (D1)

(1) To assist in reviewing housing demand in the light of changing circumstances, in conjunction with Planning Department and Housing Department.

(2) To assist in monitoring the production of public and private housing, in conjunction with Housing Department and Rating & Valuation Department.

(3) To assist in ensuring an adequate supply of land to meet forecast housing demand, in conjunction with Planning Department and Lands Department.

(4) To assist in considering strategic planning issues relating to housing supply and demand.

(5) To assist in preparing Long Term Housing Strategy Advisory Committee papers, including research, analysis and production of necessary supporting statistics.

(E5634/WIN99)

Last Updated on 12 August 1999