2

4.

The remainder of Sha Tin Market, due to be cleared in 1979, comprises 158 business undertakings. Following the same guidelines as were applied in the 1976 clearance, only 88 of these undertakings would be eligible for exceptional treatment. The criteria for exceptional treatment are:

a)

that the undertaking must lie within the

physical limits of Sha Tin Market;

b) that the undertaking is covered either by Crown Land Licence or Modification of Tenancy or had been surveyed in the 1965 squatter control survey; and

c) that the undertaking would normally be eligible for ex-gratia compensation under existing Housing Authority clearance policies.

5.

Surveys have indicated that 84 shops and 4 stalls

are eligible for this special treatment.

6.

The Commercial Complex in Wo Che Public Housing Estate will be complete by the end of January 1979. The Complex will comprise 98 shop stalls, 86 shops, one cafe, two restaurants and a supermarket.

7.

For many years, it has been the policy of the Housing Authority not to allocate shops directly to persons being cleared, since experience has shown that this has provided an unsatisfactory retailing service for the estate residents. Instead, the Authority disposes of its commercial premises by open tender which has resulted in better management and a better standard of retail service.

8.

However, having regard to the treatment attended to the Stage I clearees in 1976, and to guarantee at least some of the Sha Tin Market shopkeepers the opportunity to continue trading in Sha Tin, the Authority has agreed to reserve 30 shops and 15 shop stalls in Wo Che Commercial Complex to be made available to eligible clearees by restricted tender.

9.

The Secretary for the New Territories considers that the compensation arrangements for this clearance must be no less favourable than those offered in 1976. As it is not possible to allocate shops on a one-for-one basis, ex-gratia cash compensation, over and above that normally awarded under Housing Department policy, will be required to be paid. The Secretary for the New Territories is currently considering the level of cash compensation necessary and will make recommendations to the Finance Committee of the Legislative Council as

soon as possible.

/10. The shopkeepers....

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