************************************************************
The following is issued on behalf of the Hong Kong Housing Authority:
From January 1, 2016, tenants in 11 public rental housing (PRH) developments in which excess lead in drinking water has been found, will receive subsides for offsetting part of the water charges and sewage charges payable.
The cost for implementing this subsidy scheme, involving some $20 million, will be provided by the four contractors concerned, namely China State Construction Engineering (Hong Kong) Limited, Paul Y General Contractors Limited, Shui On Building Contractors Limited and Yau Lee Construction Company Limited. The subsidy scheme is implemented in light of the situation that the incident of excess lead in drinking water has brought about some inconvenience to the tenants in the affected estates, and that permanent rectification works take time to complete. We also note that there are demands for providing certain relief measures to the tenants in the community.
Under the scheme, each domestic household, and each non-domestic tenant in a domestic block, in the 11 affected PRH developments will receive a subsidy amount of $660. This amount, which represents the average sum of water charges and sewage charges payable by each household in a year, is calculated based on the average sum of actual water charges and sewage charges payable by all domestic households (under their most recent bills) of these 11 affected developments.
From January 1, 2016, the subsidy will be allocated to a subsidy reserve for each of the tenants on a daily basis, throughout the 366 days in 2016, for paying the tenant's water bills. If the subsidy amount is less than the sum of water charges and sewage charges payable, any excess amount will have to be paid by the tenants themselves. If the subsidy amount is larger than the sum of charges payable, the unutilised amount will remain in the subsidy reserve, for paying the tenant's water bills incurred in three years' time. The arrangement of adopting a daily subsidy amount is to allow a more equal distribution of the subsidy to tenants of the relevant PRH unit in that year, as there may be tenants moving in and out of the same unit.
Given the water consumption pattern vary from tenant to tenant in the 11 affected estates, and that the water charges payable by some of them may be less than the subsidy amount, the subsidy scheme concerned will last for three years, such that the subsidy could be more fully utilised. In cases where existing tenants move out of any of these affected estates during the above-mentioned three-year period, any unutilised subsidy will apply to the new tenants moving in.
Based on the data of the most recent water bills, the subsidy amount of $660 is equal to or more than the sum of water charges and sewage charges payable by each of the some 21,000 (70 per cent) domestic households in a year. However, among these some 21,000 domestic households, around 5,100 did not need to pay any water charges at all.
According to the concerned contractors, the subsidy is provided as a matter of good faith, good will and civic mindedness, without any admission or acceptance of any liability on their part and without prejudice to their legal rights and position.
The Water Supplies Department is now carrying out some necessary adjustments to its computer billing system.
"Since the discovery of excess lead in drinking water in some PRH estates, the Government, the Housing Authority and the contractors concerned have promptly implemented relief measures to minimise tenants' inconvenience in gaining access to safe drinking water, including the supply of bottled water, standpipes, connection of pipes from the roof-top tank to each floor of the block, and installing filters/replacing filter cores in two years for affected domestic households free of charge. We hope that all the measures and initiatives in place would be able to address the different circumstances and needs of affected tenants", said the Government spokesman.
Ends/Wednesday, November 11, 2015
Issued at HKT 20:01
NNNN
