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LAND AND HOUSING
will be permitted to retain 40 acres for private development, including areas for community facilities and recreational use, while returning the remainder of the re- claimed land to the government. It is expected that when the development is completed in about 10 years' time it will provide accommodation for some 30,000 people.
Realised premium is usually payable within a short period after the date of sale. However, 90 per cent of the premia from the sales of valuable commercial sites may be paid by instalments if the realised premium exceeds $20 million. Payment is by 10 equal annual instalments bearing interest at 10 per cent per annum. In the case of industrial sites, irrespective of the size of the premium realised, 90 per cent of it may be paid by 10 equal annual instalments bearing interest at five per cent. Where the realised premium for a residential commercial site exceeds $10 million, it may be paid by 10 equal annual instalments bearing interest at 10 per cent. The government also accepts instalment payments of premia for the modification of Crown leases in certain cases.
The demand for both industrial and non-industrial land has continued, and the revenue from land transactions for the financial year 1974-5 was $157.7 million, compared with $164.5 million in 1973-4.
Where it is not possible to dispose of Crown land for permanent development- either because public utilities and other services are not yet available, or the site has been set aside for some future purpose-the land may be let on short-term tenancy. The previous practice of issuing temporary annual licences, which is considered to be less satisfactory in terms of management and revenue, is now avoided as far as possible. The current policy is to convert existing annual licences to short-term tenancies wherever feasible. The 1974-5 revenue from this type of short-term land holding was $9.3 million in the urban areas and $15.8 million in the New Territories. With licences being cancelled to make land available for permanent development, and licences being converted to short-term tenancies wherever practicable, the number of annual licences decreases each year. The number of short-term tenancies, however, is steadily increasing.
Another source of revenue is the rental of buildings owned wholly or partly by the government. In the financial year 1974-5 this provided $7.8 million.
The government is continuing its policy of fencing vacant sites which have been cleared and installing security guards. This has reduced problems of site clearance and interference with the regular Crown land sales programme. The Director of Public Works and the Secretary for the New Territories also have powers to combat unlawful occupation of Crown land and to enable clearance to be effected more quickly, usually without litigation.
In accordance with an agreement that any military land which is surplus to the requirements of the Army will be handed back to the government for its own use or disposal, a 16-acre site at Shouson Hill on Hong Kong Island has been handed back. The site was previously used as an ammunition depot. Long-term development for this area is being planned by the Public Works Department. Arrangements were made during the year for the similar return of about 128 acres of land at Lyemun Barracks and eight acres at Chatham Road in Tsim Sha Tsui.