"To examine, in the light of the current and future resumption programme, the methods by which leased land in the New Territories towns is acquired by the Government for urban development and public purposes, including the rates of compensation paid and the land exchange scheme; and to recommend to the Governor any changes needed. 11
The Working Group's Report
4
The Working Group recently concluded its deliberations and submitted its report to the Governor on 20th April 1978. A copy of this report is at Annex B. The Working Group's conclusions and recommendations are conveniently summarised in section 8.
5
The most important recommendation in the report is the adoption of a new package offer to replace the present Letter B offer for private agricultural land. The new offer comprises an option for a 5:2 exchange entitlement for up to half of the land surrendered and a cash offer of $27 per square foot in respect of the remaining land and any of the first half for which an exchange entitlement is not requested. The rate of compensation is expected to induce many owners to forego their exchange entitlements. There is a separate package for building land, and miscellaneous recommendations in respect of procedure and other related or consequential matters.
Comments by the Government
6
The report and its recommendations have been considered within the Government and the main comments are as follows:
we shall see.
(a)
From the Government's point of view, the proposals represent a reasonable and practicable solution to present resumption problems and are therefore acceptable. From the New Territories landowners' point of view the proposals will provide a fair and sound basis for compensation payments and their review, and are therefore also acceptable to them. These proposals should, therefore, have the expected results of solving the main problem by reducing the increase in the exchange commitment to an acceptable level, while at the same time providing a practicable and acceptable method of land acquisition in the New Territories urban areas. The Secretary for the New Territories believes that the proportion of landowners who will wish to retain their new exchange entitlements may be nearer
C.S. 166
CONFIDENTIAL