1 June 1999

The Chairman / the Deputy Chairman,
LegCo Panel on Housing

Dear Chairman / Deputy Chairman,

Request for discussion on
"Affordability of tenants in public rental housing estates" and
"Cessation of tenants to pay repair services"

For the past year or so, income level of the grass root sector has been lowered dramatically amidst the aftermath of Hong Kong's financial crisis. As a result, affordability of tenants in public rental housing (PRH) estates has been declining. Recently, the market rent paid by well-off PRH tenants has been reduced while ordinary tenants only have their rent frozen. Therefore, we hope that the existing rental level of PRH estates could be reviewed thoroughly to ascertain its effect on the financial situation of PRH tenants.

Furthermore, in view of the implementation of the policy on "cessation of minor maintenance services in PRH estates" by the Housing Authority since 1 April, the LegCo Panel on Housing should discuss whether this policy is equitable. It is hoped that arrangements can be made for the discussion of these two matters in the Panel's forthcoming meeting in July. Thank you.

CHAN Yuen-han
LegCo Member