Lawmakers focus aid measures on easing loan payments for those most in need

A contentious motion urging the Government and banks to help home-buyers with negative assets was endorsed last night.

While none of the speakers agreed that public money should be used to help beleaguered buyers, most said the administration should not rule out giving further relief to those in genuine need.

Members said banks should also narrow the gap in the interest rates for second-hand and new properties, as well as allowing buyers to repay interest but not loans for the time being.

But Secretary for Housing Dominic Wong Shing-wah said negative assets had been prompted by the recession rather than by housing policy. 'As it's our policy not to interfere with the market, we will not set up any fund or provide loans for buyers with negative assets,' he said.

Secretary for Financial Services Stephen Ip Shu-kwan said the percentage of delayed mortgage repayment was only 1.26, and added that banks should not be forced to help a particular group of investors.

Moving the non-binding motion, Howard Young, of the Liberal Party, agreed that taxpayers' money should not be used to help. He called for a review on whether the Home Ownership Scheme - subsidised government housing for less well-off home-buyers - should be retained.

But Legco banking representative David Li Kwok-po said the motion was deeply flawed and ill-considered.