DISCUSSION
The Discontinuation of the existing Exchange Entitlement ("Letter B") System in respect of new acquisition by the Crown
3.1
3.2
3.3
3.3.1
We understand that the Letter B system was set up with two main purposes.
Firstly, to enable Government to acquire land for public purposes without immediate cash payment and secondly, to enable the indigenous land owner either to obtain alternative agricultural land on a foot for foot basis elsewhere or to share in the development of the New Territories by obtaining at premium, development land in exchange for the agricultural and/or house land surrendered.
Whether or not Government still feels it desirable to acquire land without cash payment, we cannot say, although from the point of view of orthodox Compulsory Purchase Procedure, payment in cash is to be preferred. We realise that initially the adoption of an exclusively cash system would substantially increase the level of compensation funds required to finance the land acquisition programme in the New Territories.. However, we believe that with a rolling programme of development, the cash outlay on resumption would need to be carried only for a few years following which the resumption programme could be at least self-financing from the sale of improved land.
As regards the second purpose, we would put forward the following opinions:
(1)
Lew land owners have sought to obtain agricultural land in exchange for the land surrendered.
3.3.2
(ii)
3.3.3
(iii)
Very few indigenous land owners appear to have been able to undertake their own developments by using exchange entitlements. Most have sold out to developers and speculators.
Until quite recently, the prosir charged for a Letter B exchange has generally been below a true market figure for the date concerned, It is therefore only in respect of a few