28
Encl.
be as important as the proposed rate itself.
Although
it had not been possible to determine a rate of cash
compensation, which was entirely tied to land values, it
was highly desirable that changes in the compensation
rate should move with land values. The Working Group
accordingly recommended the adoption of an index which
will maintain the existing ratio between average land values
and the compensation rate. The index will take account
of the relative proportions, of land in different zonings
and price categories found in the layouts. It is proposed
that a review should be carried out at the same time
as the Chart W values (see Note 2(ii) of Enclosure 1)
are revised, normally twice a year.
7
5.10
Encl. 3
Enclosure 7 gives the details as to how this
index is to be calculated. Assuming that the recommended
initial rate of compensation of $27 per square foot for
agricultural land is tied to an average land value of
$367.50 per square foot (the figure derived from the
calculation shown in Enclosure 8 using Chart W values for
the period 1st July 1977 to 31st December 1977), the
revised rate of compensation for agricultural land for
a future period when the index stands at 119 (using
'assumed revised Chart W values for this future period
as shown in Enclosure 7) would be
$27 x
119 100
$32
/The