FRIDAY, AUGUST 18, 1978
BIG INCREASE IN EX-GRATIA ALLOWANCES FOR SQUATTER FACTORY OPERATORS
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THE GOVERNMENT HAS APPROVED A 70 PER CENT INCREASE IN THE RATE OF EX-GRATIA ALLOWANCES IT WILL PAY TO THE OWNERS AND OPERATORS OF SQUATTER FACTORIES WHICH HAVE TO BE CLEARED TO MAKE WAY FOR PUBLIC DEVELOPMENT PROJECTS.
A GOVERNMENT SPOKESMAN ANNOUNCED TODAY THAT IN FUTURE COVERED WORKSHOPS WITH AREAS BETWEEN 50 AND 200 SQ. FT. IN TEMPORARY STRUCTURES RECORDED IN THE 1976 SQUATTER CONTROL SURVEY WOULD BE ELIGIBLE FOR $7,000 AND $34 FOR EVERY ADDITIONAL SQUARE FOOT, INSTEAD OF THE PRESENT $20 RATE ON CLEARANCE. THE CEILING OF $100,000 HAS BEEN ABOLISHED.
THE SPOKESMAN SAID THE NEW PROCEDURES HAD BEEN INTRODUCED TO MEET CHANGING CIRCUMSTANCES BROUGHT ABOUT BY THE RAPID DEVELOPMENTS TAKING PLACE IN HONG KONG, ESPECIALLY IN THE NEW TERRITORIES.
+ IN NORTH TSUEN WAN, FOR EXAMPLE, THERE IS A CLEARANCE WHICH INVOLVES MORE THAN 400 FACTORIES, AND ALSO 22 BIG FACTORIES MUCH LARGER THAN THE ONES NORMALLY FOUND IN CLEARANCE OPERATIONS, THE SPOKESMAN SAID.
THE NEW RATES MEAN THAT THE OPERATORS OF THE 22 LARGE FACTORIES IN THE CLEARANCE WILL RECEIVE MORE THAN $8.5 MILLION IN COMPENSATION ABOUT $6.5 MILLION MORE THAN THEY WOULD HAVE RECEIVED UNDER THE OLD SYSTEM.
AND OVER THE 400 SMALLER FACTORIES IN THE SAME AREA TO BE CLEARED OVER THE NEXT TWO YEARS, THE GOVERNMENT EXPECTS TO PAY OUT A TOTAL OF MORE THAN $20 MILLION, THE SPOKESMAN SAID.
+ALTHOUGH THE FACTORIES HAVE NO PERMANENT LEGAL TENURE TO THE LAND ON WHICH THEY ARE BUILT, THE GOVERNMENT RECOGNISES THE SPECIAL CIRCUMSTANCES IN WHICH MANY OF THEM HAVE BEEN OPERATING FOR MANY YEARS, USING QUITE EXPENSIVE PLANT AND EQUIPMENT IN SOME CASES AND EMPLOYING A SIZEABLE WORKFORCE.
+AMONG THE OTHER FACTORS TAKEN INTO CONSIDERATION WERE THE SIZE OF THE DEPOSIT THE PROPRIETOR WOULD HAVE TO PUT DOWN TO ACQUIRE ACCOMMODATION IN A PRIVATELY-OWNED INDUSTRIAL BUILDING AND HIS LIABILITY TO PAY STATUTORY SEVERANCE PAY IF HE HAS TO LAY OFF HIS WORKFORCE.+
+THESE NEW RATES WILL HELP THEM SOLVE SOME OF THE IR PROBLEMS AND TO REPROVISION THEMSELVES PROPERLY.+
THE SPOKESMAN ADDED THAT THE EXISTING EX-GRATIA ALLOWANCE OF $7 PER SQUARE FOOT FOR OPEN WORKING AREAS WILL REMAIN UNCHANGED.
/HE SAID THAT