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Beijing's heavy hand on housing

HSBC
May Chan

A political storm is set to wreak havoc in the new-look Housing Authority with its recent revamp to enlist more China-backers and pave the way for an early transition by the statutory body.

Of the 10 newcomers given chamber seats which carry the power to decide authority policy and how to use its vast assets, three China-endorsed political heavyweights have grabbed centre stage.

The trio are Hong Kong Special Administrative Region (SAR) Government Land Fund chief executive Chung Shui-ming, senior Chinese representative of the Sino-British Land Commission Ng Leung-sing, and Democratic Alliance for the Betterment of Hong Kong secretary-general Cheng Kai-nam.

Mr Cheng, whose party was trounced in last year's Legislative Council elections, has been given a seat on the authority's management and operations committee to decide the rents for public estates.

Mr Chung will sit on the funds management sub-committee to monitor the $3.5 billion the authority has invested in the financial markets.

Mr Ng is placed on the home ownership committee - an area of increasing significance as the Government plans to boost production of home ownership flats after 2001.

The so-called home ownership-oriented approach is expected to be a main theme of a review of Hong Kong's long-term housing development to 2006, on which the Housing Branch has been ordered to submit a report by the summer.

The move seems to indicate greater control by China over the $64 billion in assets and the $10 billion operating surplus in the hands of the authority, which manages 657,000 rental units and 187,000 home ownership scheme flats.

As Hong Kong's biggest landlord and developer, the authority is financially independent. Its spending is not part of Government expenditure and general revenue; however, it still represents an important element of public sector spending and China certainly would not overlook its significance in the post-1997 administration.

With its expanded membership the pro-Beijing camp can almost be assured of being able to dictate policies in the chamber with substantial support from other sympathetic members, including Hau Shui-pui, Chan Kam-man, Chan Bing-woon, and the pro-business faction.

Preparatory Committee vice-chairman Leung Chun-ying has served on the authority for a long time. Authority Chairman Rosanna Wong Yick-ming, who is also the convenor of Governor Chris Patten's Executive Council, has initiated the overhaul to expand membership and the increased workload. She agrees some members can play a 'middle-man' role to 'enhance communications' with various interests of the community.

Veteran housing affairs analyst Ho Hei-wah, director of the grassroots group Society for Community Organisations, warned that Ms Wong risks inviting Beijing's interference within the comparatively dormant local housing arena.

Mr Ho, also a member of the Governor's think-tank Central Policy Unit, said: 'It could further shake the principle of Hong Kong people ruling Hong Kong.

'Tenants on public estates or those 150,000 families on the waiting list will become the victims if housing affairs are politicised,' Mr Ho said.

Hong Kong People's Council on Public Housing Policy chief secretary Virginia Ip Chiu-ping warned the authority's role of providing affordable units to grassroot people could be eroded due to Beijing's opposition to welfare spending.

Ms Ip also feared the pro-China elements would put Beijing's interests ahead of local people's needs.

Senior Preparatory Committee member Leung Chun-ying vented plenty of spleen at an open authority meeting in March on a proposal to democratise public housing management.

Mr Leung blasted the scheme to allow tenants seats on advisory committees on how public estates should be run, for fear the committees could become a political forum. Some analysts say the membership reform will complicate the already difficult transition because the uncompromising pro-democracy camp will likely clash with China over housing affairs.

But in some sense, the overhaul can mean a smoother transition as it enables those China-backers in the authority to be more familiar with the housing affairs in Hong Kong. And drastic changes can be avoided after the handover if the authority's policies can gain the support of the Chinese side.

Ms Wong's reform not only expands the authority membership from 25 to 32, but also offers chances for democrat legislators to serve on public bodies beyond the handover.

Democratic Party legislators Dr Anthony Cheung Bing-leung and Lee Wing-tat's appointments are sensitive. They are expected to be thrown off the legislature by Beijing after June 30 next year.

Dr Cheung said: 'It is impossible for the future chief executive to totally ignore the views by public representatives. It is important for him to hear as many different views as possible if he wants stability.' Pro-China figure Cheng Kai-nam dismissed fears of Chinese interference. 'Much of the fear erupts because of mutual mistrust,' he said.

He argued against what he called a common misconception that pro-China was anti-democracy.

Referring to the democratisation of the Housing Authority, Mr Cheng said: 'Democracy does not necessarily mean having all members elected by the public. If we changed the structure of the authority too drastically, it would result in big changes in policies, which would cause great political implications.' The so-called increasing politicisation of housing affairs has cost the authority two of its senior members this year.

Veteran member Hui Yin-fat retired in March after serving the statutory body for 10 years, citing increasing dominance of politics on the authority board. Mr Hui, also Hong Kong Council of Social Service director, quit the legislature last year on similar grounds.

The pro-business Liberal Party legislator Edward Ho Sing-tin, having served the authority for 10 years, also quit after attacks of possible conflict of interests. Mr Ho, the pro-Beijing Business and Professionals Federation chairman, drew criticism because his firm was found being awarded several big contracts for authority projects.

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