The five new contract residential care homes for the elderly proposed in last week's Policy Address will provide 500 subsidised places, Secretary for Labour & Welfare Matthew Cheung says.

Speaking on a radio talk show today Mr Cheung said the new contract homes, to be built in the next three years, will be situated in districts like Sai Ying Pun, Sham Shui Po, Tai Kok Tsui and Tung Chung.

The Policy Address also proposed buying, for the first time, vacant places from self-financing nursing homes and care and attention homes. Mr Cheung emphasised these institutions are non-profit making and high quality.

He added a pilot Bought Place Scheme for residential care homes for people with disabilities will be introduced. The details of the new measures will be unveiled in the Financial Secretary's Budget.