Reponse to the Report No. 86 of the Director of Audit

The Federation takes seriously the recommendations in the Audit Commission’s Report on the Youth Hostel Scheme and is carefully reviewing them.

We have always upheld the principles of legal and regulatory compliance and fiscal prudence. As the first project under the Scheme, PH2 has adhered to our established procurement, tendering and quotation procedures, with all decisions assessed fairly against technical requirements and pricing, which are supported by proper documentation.

The project was implemented during a period marked by social unrest and the pandemic, which created significant logistical and operational disruptions. In spite of these, we continued to maintain close communication with relevant government departments and follow established procedures to ensure project completion and operation, in meeting the housing needs of young people.

Regarding tenancy application processing and waiting time, given that the Scheme has a maximum tenancy period of five years and limited accommodation capacity, allocation arrangements take into account room conditions, verification procedures and support measures for new tenants. We have conducted a full review of relevant processes to enhance allocation efficiency, while ensuring a stable living environment and support for tenants.

The Youth Hostel Scheme aims to provide young people with affordable accommodation and opportunities for personal development. According to our tenant surveys, overall satisfaction with the project rose from 7.8 in 2022 to 8.9 in 2025 on a ten-point scale, reflecting its value and impact.

We remain committed to continuous improvement, and will strengthen our practices in response to the Report, while continuing to serve the needs of young people and the wider community.