18
REVIEW
The procedure is simple and flexible to cover any eventuality. It has enabled land to be used which would otherwise have been left vacant, or been occupied by squatters, pending future planned development, and it has allowed that development to proceed at the appropriate time without large compensation payments for land and buildings. However, the system suffers many disadvantages and with the advent of the flatted factory, which provides space for the small industrialist, and the availability of greater areas of land, planned, formed and serviced ready for development, it now plays a less important role in the industrialization of the Colony. In part it has been replaced by short-term leases such as those now granted for the temporary occupation of land on the Hung Hom reclamation, the former Kowloon Naval Yard and elsewhere.
In the New Territories permits are granted reasonably freely for temporary structures intended for domestic accommodation usually related to agricultural pursuits. In addition, modifications of tenancy are given to allow the erection of temporary structures on private agricultural land for domestic accommodation. A development of the permit system has, since 1950, enabled culti- vators to purchase, by private treaty, the land they have had on permit after ten years provided that the land has been cared for in a ‘good and husbandlike manner' and is not likely to be required for development. This is in fact the manner in which most agricul- tural land has been sold since 1950. It has the great advantage of giving farmers the opportunity to acquire their own land without the hazards of public auction. A condition of the sale is that the land must be used solely for agriculture and it is the policy not to modify this condition for at least 10 years and then only in the public interest. Prohibited areas where no more building per- mits will be allowed are declared from time to time in order to prevent overcrowding and fire risks and in general no new permits are being issued for industrial undertakings although existing per- mits are normally renewed.
In recent years a few lots which failed to obtain a purchaser at auction have been sold by tender, but experience has shown that this system cannot normally be used as a practical alternative to auction. Its special advantage in exceptional cases lies in the fact that it enables aspects other than the bid price to be considered by Government in its selection of the purchaser. Thus an area