2
6.
There are already a large number of squatter factories df all descriptions in the various parts of the New Territories, estimated to be about 10,000 in number. Most of them are located in the Yuen Long plain and the Sheung Shui/Tai Po area which drain into Deep Bay and Plover Cove respectively. Both areas, especially the former, are now very polluted as a result of the industrial waste disposed by these factories. For some years, it is the policy to prevent further modifications to agricultural land for industry use in order to protect the environment and to discourage factories from noving to the rural areas. If factories are permitted to be resited, on clearance, to agricultural land elsewhere, it will be impossible to maintain control for development and environmental protection as factories will be developed more and more intensively in other parts of the New Territories as clearances proceed.
7.
Having regard to the long term. clearance commitments and the existing land policies, the conclusion has bien reached that no land solution, in terms of resites is practicable, and that clearance of the Tsuen Wan and other factories will have to be achieved solely Ly ex-gratia allowances.
8.
The rates of ex-gratia allowances before July this year were $7,000 for between 0 to 200 sq. ft. of covered working area, plus $20 per sq.ft. for remaining covered working area plus $7 per sq.ft. for open working area. This compensation was subject to a maximum ceiling of $100,000. In July the $20 per square foot rate was raised to $34 per square foot and the compensation ceiling was removed.
9.
The appropriateness of the present rates of ex-gratia allowance has been re-examined in the light of strong representations made by a number of the inadmissible Tsuen Wan factories. In recognition of the greater difficulties confronting them and the fact that they are ineligible for reprovisioning in Housing Authority flatted factories, Fin, nce Committee has, on 29th November 1978, approved a further increase of the rate by 10% from $34 per sq.ft. to $38 per sq. ft. as additional compensation to the inadmissible factories.
10.
On pre--July rates, compensation to the the 22 large inadmissible factories affected by the Tsuen Wan clearances would have amounted to some $2 million. On the latest rate it will be $9.3 million.
/11.
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