The Housing Department plans to delete another 659 posts, including 10 directorate ones, by March 2007, Secretary for Housing, Planning & Lands Michael Suen says. The deletion will involve 406 civil service posts and 253 Housing Authority contracts.

Mr Suen told legislators today the department has deleted 2,841 posts so far - 17 directorate posts. The resultant reduction in the department's civil service establishment was about 20%, which exceeded the target reduction of 10% set by the Government.

Mr Suen said the further deletion aims to achieve the overall target reduction of about 3,500 posts. The total establishment will be reduced by about 30% and the directorate establishment by 37%, with resultant annual savings estimated at about $1.3 billion.

Public expenditure for achieving his bureau's policy objectives will be about $18.1 billion in 2005-06, representing 6.7% of total expenditure. About 98% of this, $17.7 billion, will be incurred by the Housing Authority, mainly for the construction and management of public rental housing and the ancillary commercial and welfare facilities.