G.F. 323

1

CONFIDENTIAL

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it is not always possible to provide these resite houses in time and a rent allowance is paid in the interim.

22.

Domestic occupants of temporary huts on land to be cleared are either offered direct rehousing or accommodation in a temporary housing area depending on the length of time their structure has been in existence.

23.

Development also entails clearance of many settled farms, small factories, shops, stalls and so forth. Various levels of compensation payment are made but some are dissatisfied with the compensation offered. A Secretariat Committee has recently been formed to examine all levels of compensation. Sonc adjustments may well be necessary.

Adequacy of Public Services and Facilities

24.

Rates and property tax were extended to certain towns in the New Territories in 1975. Rates were introduced at lower levels and are being phased in over a period of five years. Village houses were exempted. Partly arising from this extension of rating, during the last six months the Heung Yee Kuk has turned its attention to the adequacy of public services in the New Territories. Representations have been made, in particular on medical facilities, water supplies, street and village lighting and cultural and recreational facilities. Positive steps to improve provision in many fields are in hand and this was pointed out in a letter from the Governor to the Heung Yee Kuk in liarch, a copy of which is attached as Part III.

25.

Hitherto, given the resources available, the relatively less populous New Territories received a lower priority for provision of services and facilities. New Town development programmes provide for planned development of Community facilities together with the major housing and industrial developments. Similar development programmes on a smaller scale have been prepared for the main market towns and other rural centres, and a start is being made on eight of these programmes in the coming year. In addition the villages are assisted through the local Public Works system operated by the New Territories Administration. A sum of 5 million is available for local public works projects in 1977-78.

Village Houses

25.

A policy was announced in 1973 to improve standards of village housing by providing land at concessionary rates for villagers to build a house for themselves. This policy has been widely abused by selling these rural houses to outside speculators. It was necessary early in 1976 to try to prevent the sale of such property to others and to limit development to village areas. These controls have gone some way towards curbing the abuses and a revised policy is now under consideration. The Heung Yee Kuk accepts that some such modifications were and are essential.

CONFIDENTIAL

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