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HONG KONG URBAN COUNCIL
ACTING COMMISSIONER FOR RESETTLEMENT:- If the Chairman of the Policy Select Committee is willing, I would be quite happy to prepare a paper covering this point in six months' time for discussion.
DR. BELL:- I am perfectly willing.
(12) MR. HENRY H. L. HU asked the following question:-
Is the Urban Council the principal body to determine the grades of resettlement shops for the purpose of applying rents? What are the existing grades? What are the principles upon which the grades are determined?
MR. LI YIU-BOR, CHAIRMAN OF RESETTLEMENT MANAGEMENT SELECT COMMITTEE replied as follows:-
The answer to Mr. Hu's first point is that until 1960 the rents of shops or workshops were at a flat rate, irrespective of their location; but that in 1960, the then Resettlement and Clearance Policy Select Committee agreed in principle to the introduction of a system whereby shop or workshop rents would be classified into 4 grades, which would be subject to an annual review, bearing in mind the business prospects of the premises. On 1st January, 1962 certain increases in rents of shops and workshops came into effect, and at the same time the system of grading of these premises (and also of restaurants) was brought into force. The grading is carried out after on-the-spot inspections by responsible officers of the Resettlement and the Rating and Valuation Departments. Although the advice of the Commissioners of Rating and Valuation and of Resettlement is taken into account, the final approval of the grading of all such commercial premises in urban estates rests with the Resettlement Management Select Committee. The answer to the second part is that there are four grades--- A, B, C and D. The rents which each grade attracts vary with the ground floor size of the premises and the type of block in which they are located. Full details are set out at length in Part II of the Second Schedule to the Resettlement Regulations.
The answer to the last part of Mr. Hu's question is that, on initial allocation in a new estate, all workshops are placed in Grade D and all shops in Grade C. After the block has been completed for six months, the grading of these new shops and workshops is reviewed by the Rating and Valuation Department in conjunction with the Resettlement Department. Then towards the end of every financial year, the Resettlement Management Select Committee, as I mentioned earlier, reviews the joint recommendations of these departments, which may cover shops, restaurants and workshops not only in the new blocks but also in any older estates where there may have been a change in business prospects. The Select Committee concerned may then upgrade or downgrade any shop. Only those in the very best locations with the potential for good commercial turnover are ever graded A. A change in trading opportunities may occur as a result of a new hawker bazaar, a new road or flight of steps, nearby development, opening of fresh provision shops or general restaurants, and so on. In short, the gradings relate to the premises concerned and reflect the business opportunities of their locations; they do not relate to the personal circumstances of any particular tenant.
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MR. HU:- Mr. Chairman, I would like to know what is the rent for the Grade "A" shop, and what is the rent for the Grade "B" shop?
MR. LI:- Mr. Chairman, I think the question raised by Mr. Hu will have to be answered by this book. It contains all the shop rents in the different blocks. Mr. Hu will be aware that we have five types of blocks, and the rents in all these five types of blocks are not exactly the same.
So may I, with your permission, Mr. Chairman, pass this book to Mr. Hu for his information? (The Chairman agreed and Mr. LI passed Mr. Hu a copy of Part II of the Second Schedule to the Resettlement Regulations).
MR. HU:- Thank you, Mr. Chairman, I would like to ask Mr. Li is the Grade "A" shop rent double the Grade "B" shop rent?
MR. LI:- All that will be contained in the book, (Laughter) from page A. 22 up to A. 28, Mr. Hu. (Laughter).
MR. HU: Mr. Chairman, I think the Grade "A" shop rent is double the rent for a Grade "B" shop. Mr. Chairman, through you, I would ask Mr. LI is it the situation that some shops, for example in Tin Wan Resettlement Estate, cannot really compare with shops, for example, in the Shek Kip Mei Estate?
CHAIRMAN:- Mr. Hu, what do you mean by "cannot compare"?
MR. HU:- For example, where business prosperity is concerned, shops in Shek Kip Mei area may be planned better, and may have better business opportunities than the shops in the Tin Wan Estate. But the Shek Kip Mei rents are only double, although the business opportunity...
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