23
Wednesday, May 10, 1972
"And it is the public interest, the wider interest of the community
as a whole, which would be prejudiced by such a change," the Financial
Secretary said.
He explained that the practice of selling land for development by
private enterprise on 75-year renewable Crown leases started in 1988.
It had been decided then that the leases should be such as to
give the lease owners the option of renewal and yet reserve to the public
purse the future enhanced value of the land, he added.
Yet the method of renewal left a large share of the enhanced value
of the land with the lessees. Because of the low assumed rate of interest
used in calculating the renewal rent over 50 per cent of the enhanced value at
the time of the renewal was left with the owner.
Balance
"This is fair and just and reasonable and had been accepted as such
by the highest judicial tribunal in the Commonwealth. This rate which is
essentially a concessionary rate, strikes a balance between the public
interest, on the one hand, and the legitimate needs and aspirations of landowners,
on the other," he said.
"And let it be stressed that the nature of an option is that the person
in whose favour the option is conceived, in this case the Crown lessee, is not
obliged to take it up," he added.
However, out of 79 lots or sections the loases of which expired in
1972, the owners of 51 had so far accepted renewal on the terms offered to them
and none had refused, he pointed out.
/Presumably