HK Govt sets up Housing Reserve to meet public housing needs

    The Financial Secretary, John C Tsang, said today that the Government has established a Housing Reserve to meet the 10-year public housing supply target.
  The Financial Secretary has instructed the Chief Executive of the Hong Kong Monetary Authority (HKMA) to set aside the investment return on the Government's fiscal reserves (about HK$27 billion) for the Housing Reserve. The HKMA is also responsible for the investment of the Housing Reserve. The Housing Reserve and the cumulative investment return will be used to support the public housing development programme and related infrastructure.  
  The Government and the Housing Authority  will continue discussions on the long-term financial planning of the HA. The HA has to assess its medium to long-term financial requirements based on its five-year rolling budgeting process and adopt every possible measure to ensure the cost effectiveness of the public housing development programme. When the two sides have reached agreement on quantum and timetable of funding injection from the Government, the Government will seek the approval of the Finance Committee of the Legislative Council for funding to be drawn from the Housing Reserve to support public housing development.