THE Housing Authority is expected to be at the centre of heated discussion tomorrow when legislators debate whether the interest and dividend it pays to the Government should be waived. The motion, proposed by Mr Frederick Fung Kin-kee, will hinge on a handful of independent legislators. Mr Fung said the Government should also reduce land development charges in order to allow the authority more spare cash. He argued that this would enable the authority to introduce environment improvement measures in public housing estates and to build more public housing flats. Under the present financial arrangement, the authority has to pay the Government an annual interest of five per cent on the permanent capital it injected into the housing body - a policy not applied to other government departments. It is also required to pay a dividend plus a more than required 35 per cent of the construction cost as land production cost to the Government. Mr Fung, who is also the chairman of the Association for Democracy and People's Livelihood, estimated that the authority would end up paying more than the $26 billion capital injection from the Government. Those who have thrown their weight behind the motion included the 13 United Democrats, four Meeting Point legislators and Mr Gilbert Leung Kam-ho.