Leung Chun-ying, Hong Kong Leader, Pledges to Ease Housing Shortage



Hong Kong’s embattled chief executive used his first policy address on Wednesday to outline a series of populist proposals to try to alleviate the severe housing shortages and air pollution that have been bedeviling the city.


The chief executive, Leung Chun-ying, who took office in July and has already weathered one legislative vote of no confidence, one vote to start an impeachment process and a series of large street protests, pledged to help produce 100,000 units of housing over the next five years by streamlining approvals, opening up undeveloped lands for housing and even tapping rock caverns and underground spaces for development.


His address came in the wake of a steadily increasing drumbeat of criticism over his administration, centering on his perceived close ties to the Chinese leadership and his actions during his election campaign. During the race, he concealed the fact that he had expanded his $64 million home without receiving government planning permission, while at the same time criticizing his opponent for similar transgressions, prompting charges of hypocrisy.


Mr. Leung has already taken steps to curtail housing speculation by imposing steep taxes on short-term real estate purchases by anyone who is not a permanent Hong Kong resident. Despite a moderation in apartment prices, demand for housing remains intense, he said.


“Many families have to move into smaller or older flats, or even factory buildings,” he said. “Cramped living space in cage homes, cubicle apartments and subdivided flats has become the reluctant choice for tens of thousands of Hong Kong people.”


Mr. Leung also promised to reduce air pollution, notably through the retirement of diesel trucks. He said his government would offer $1.29 billion in payments to the owners of more than 80,000 old, heavily polluting trucks, who will be required to retire them or replace them with new models.


The plan will reduce roadside emissions of particulates 80 percent and emissions of smog-causing nitrogen oxides 30 percent, the government said.


While cars tend to draw more attention than trucks as pollution sources because of their greater numbers, American air pollution researchers working in Asia have found that the diesel engines in trucks and buses are a far bigger threat. They account for over 90 percent of vehicular emissions of particulates and nitrogen oxides in mainland China, studies there have found. Some studies have also found that diesel exhaust is carcinogenic, but this aspect of Chinese air pollution has been studied less.


In his speech on Wednesday, Mr. Leung tried to change the political narrative by addressing the bread-and-butter concerns of the residents of Hong Kong, where an influx of money, much of it from the Chinese mainland, has led to yawning wealth disparities.


“While Hong Kong is a generally affluent society, there are still many people who live a hand-to-mouth existence,” he said. “Public resources should be devoted to those who cannot provide for themselves.”


Large-scale developments in Hong Kong take 10 to 20 years to approve and build because they involve considerable public consultation, elaborate engineering to adapt to the challenges of building on the city’s steep slopes, and sometimes the construction of additional subway stops. Mr. Leung cautioned in his speech that his suggested measures might not bring quick relief from the city’s housing shortage.


Teenagers and people in their 20s have become increasingly active in the past year in street protests that previously had more middle-aged demonstrators, and Mr. Leung tried to seek the support of the city’s young people. They face higher unemployment than previous generations and more worries about housing affordability. But they also tend to be sympathetic to environmental concerns about encroachment on the city’s many hillside parks, which real estate developers regard as a source of delay.


“Our young people should recognize that the planning proposals and development options under discussion today are intended to address their future needs,” Mr. Leung said. “It is all too easy for the government to sidestep the problem, but it is today’s young people who will have to bear the adverse consequences in the future.”


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