198
LAND, PUBLIC WORKS AND UTILITIES
The office's main functions are to acquire and make available land for the government's development programmes, to dispose of sufficient land to meet demand and to manage all unallocated government land.
Although most government land available for private sector development is sold by public auction or tender, land is also made available at nominal premium to the Housing Authority for its public rental estates and home ownership schemes and to non-profit- making charitable medical and educational institutions which operate schools, hospitals, social welfare and other community services.
A land sales programme is issued at the beginning of each financial year and updated regularly showing the details of public auctions and tenders which are normally held each month. Land in the New Territories is often sold by way of letter B tender, which means that only holders of letter B entitlements are able to bid. These land exchange entitlements were used in the past for the acquisition of land in the New Territories but have ceased being issued since 1983.
Land usage statistics are at Appendix 35.
Land Acquisition
When private property is needed in the public interest, which in most cases is for the implementation of public works projects, and cannot be acquired by negotiation, the use of compulsory powers becomes necessary. Property may then be acquired under the Crown Lands Resumption Ordinance, the Land Acquisition (Possessory Title) Ordinance, the Mass Transit Railway (Land Resumption and Related Provisions) Ordinance or the Roads (Works, Use and Compensation) Ordinance. These ordinances provide for payment of compensation based on the value of property, and for business loss where appropriate, at the date of acquisition. If agreement cannot be reached on the amount payable, either party can refer the claim to the Lands Tribunal for adjudication.
Where land is acquired in the New Territories, a system of ex-gratia payments applies with enhanced rates being paid for land situated within the new town development areas and progressively lower rates for land situated outside these areas. In the case of building land, an ex-gratia payment is offered in addition to the statutory compensation available. A system of ex-gratia payments also applies in the case of old scheduled lots acquired in the urban area. Additionally an ex-gratia allowance, known as a Home Purchase Allowance, is normally paid upon resumption of domestic units within the urban area.
During 1992 about 0.4 million square metres of private land was acquired in the New Territories for various projects at an acquisition and clearance cost of about $0.79 billion. These projects included the Lantau Fixed Crossing, the North Lantau Expressway, Tung Chung New Town Development, pumping stations and aqueducts for water supply from China, the Tin Shui Wai West Access and the North East New Territories Landfill Site and its associated works.
In the urban area Kowloon Walled City was finally cleared and demolition of the buildings started. It previously covered an area of 2.7 hectares with a population of some 28 250. Owners and occupiers of 8 494 premises, including 983 premises used for business purposes, were eligible for compensation payable on an ex-gratia basis and expenditure on com- pensation incurred to date is $3,017 million, of which $546 million was incurred during 1992.
Elsewhere in the urban areas of Hong Kong and Kowloon, acquisition for the implementation of urban renewal projects to be carried out by the Land Development