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THE EFFECT OF IMPLEMENTING OUR PRO. OSALS
8.1.
The proposals which we have made are in rather general terms and consequently it is not possible to forecast precisely and comprehensively the likely effects of implementing them. However, it is possible to indicate, also in broad terms, at least some of the major effects which we can summarise as follows:
8.1.1
8.1.2
8.1.3
(1)
Cost to the Crown
Abandoning the Letter B system in respect of new compulsory acquisitions in the new towns would obviously involve an immediate increase in the Crown's cash outlay on compensation.
By basing compensation on actual market values, it is likely that in many cases, but not all, the amount of compensation paid to dispossessed land owners within the new town layouts would be higher than the administrative sum of $17 cash now offered as an alternative to Letter B entitlement.
(ii)
(iii)
Cost benefit to the Crown
By relieving itself from the liability to make formed development land available to holder of Letter B after the presently outstanding entitlements are used up, we believe that the Crown could probably reap a considerable cost benefit from the sale of such land at public auction.
Effect on the Dispossessed Land Owner
Much of the readily accessible land in the New Territories could be considered physically suitable for some kind of development or non-agricultural use. In many cases, therefore, it could be shown that development or change of use could reasonably have been expected. Even though the Crown is known to charge a premium (or rent) representing the