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HONG KONG LEGISLATIVE COUNCIL 20 January 1988
appointed by the first owner becomes the manager of the property for the life of the lease, and there are obvious reasons why owners do not want to be bound by these terms for another 50 years.
The Administration explains that under this Bill DMCs will survive for the full period of the extension, and this is necessary for good management of multi-ownership property. Should all DMCs cease to be enforceable after the expiry of the original lease terms, a very serious property management problem would develop. Owners who find the DMC unfair or oppressive may however take up the issue separately.
The ad hoc group understands that the Administration has set up a sub- committee, under the existing Standing Committee on Multi-Storey Building Management, to identify ways to rectify the unfair provisions of existing DMCs. We hope to hear from the Administration soon what avenues will be made available to property owners who want to protect their rights under the extended DMCs.
The fourth point I would like to make is about leases for recreational areas. There are around 40 recreational areas currently held by clubs and associations. in the New Territories and outlying islands. Most of them are voluntary, sports or non-profit making organisations such as the Boy Scouts, YMCA, Outward Bound and so on. They only have to pay the Government a nominal fee as rent for the use of the land.
For a metropolitan city such as Hong Kong, these recreational areas provide the residents with a good break from the city life. The existence of these recreational areas therefore has contributed to a healthy community, from the point of view of badly-needed leisure outlets.
However, no rent concession provision was made in the Bill in regard to these recreational areas. I am concerned that if annual rent at 3 per cent of the rateable value was to be charged, many of the organisations involved may not be able to afford to pay. Or they may have to shift the burden to their users, that is the general public, by raising the level of fees. In both cases, it is the general public who will suffer one way or another.
Once the Bill is passed, I hope the Government will make necessary allowances to these organisations so that they can continue to operate the much-demanded recreational areas without the fear of having to contend with rising costs.
Having said all this, I agree with the Administration's view that the New Territories Leases (Extension) Bill 1987 should not be delayed any further, as it will have a significant impact on the future development of the New Territories. For example, the problems of the industrial estates in Tai Po and Yuen Long have been brought to the attention of the ad hoc group-there are indications that investors, including some large multi-national companies, are becoming
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