WEDNESDAY, NOVEMBER 10, 1982
REPLYING TO THE HON STEPHEN CHEONG ON MATTERS RELATING TO LAND POLICY AND ADMINISTRATION, MR MCDONALD SAID THAT WHILE HE AGREED IT WOULD BE WRONG TO CHANGE THE LAND SALES PROGRAMME AND TO HOLD BACK LAND AVAILABLE FOR SALE, IT WOULD ALSO BE WRONG FOR GOVERNMENT TO SELL LAND AT UNREALISTICALLY LOW PRICES.
+TO DO SO WOULD BE TO GIVE AWAY LAND WHICH IS THE COMMUNITY BIRTHRIGHT AND TO TRANSFER FUNDS WHICH RIGHTLY BELONG TO THE COMMUNITY INTO DEVELOPERS' POCKETS. GOVERNMENT WILL THEREFORE CONTINUE TO SELL LAND SO LONG AS DEVELOPERS ARE PREPARED TO BUY IT AT A PRICE WHICH FAIRLY REFLECTS ITS LONG-TERM POTENTIAL, HE ADDED.
MR MCDONALD SAID GOVERNMENT WAS AWARE OF THE PROBLEMS BEING FACED BY DEVELOPERS IN THE PRESENT MARKET AND ACCEPTED THAT A SYMPATHETIC RESPONSE TO THOSE WITH A REASONABLE CASE COULD BE JUSTIFIED TO ENSURE THE SUCCESSFUL COMPLETION OF DESIRABLE DEVELOPMENTS.
+WE INTEND TO BE FLEXIBLE, FOR EXAMPLE, IN DEALING WITH MATTERS SUCH AS BUILDING COVENANTS. AT THE SAME TIME WE MUST BE CAREFUL NOT TO TURN LOSSES WHICH ARE THE RESULT OF INJUDICIOUS INVESTMENT OR SPECULATION INTO UNEARNED GAINS, PARTICULARLY IF THIS IS AT THE EXPENSE OF THE TAX-PAYERS,+ HE SAID.
+WE INTEND THEREFORE TO AVOID THE INTRODUCTION OF BLANKET MEASURES, SUCH AS MORATORIA ON PAYMENTS NORMALLY DUE, WHICH FAIL TO DISCRIMINATE BETWEEN THE DESERVING AND THE UNDESERVING.
+GIVEN THE EXCEPTIONALLY HIGH LEVELS REACHED, A FALL IN THE PROPERTY MARKET, BUT PERHAPS NOT ITS FULL EXTENT AND SPEED, WAS PREDICTABLE. TO SOME DEGREE IT MIGHT BE REGARDED AS A BLESSING IN THAT IT SHOULD HELP PAVE THE WAY TO ESTABLISHING MORE REALISTIC MARKET CONDITIONS.+
REFERRING TO REMARKS MADE BY THE HON CHEUNG YAN-LUNG ABOUT THE LAND EXCHANGE ENTITLEMENT SYSTEM, MR MCDONALD SAID THE
IMPLICATIONS OF CEASING TO ISSUE LETTERS B WERE UNDER DISCUSSION WITH THE HEUNG YEE KUK BUT THERE COULD BE NO DOUBT THAT IT WAS A STEP WHICH MUST BE TAKEN IF GOVERNMENT WAS TO MEET ITS COMMITMENTS TOWARDS THOSE ALREADY HOLDING LETTERS B.
TURNING TO FEES FOR SHORT-TERM WAIVERS IN THE NEW TERRITORIES, MR MCDONALD SAID GOVERNMENT RATES FOR TEMPORARY TENURE IN THE NEW TERRITORIES HAD LONG BEEN CONSIDERABLY BELOW OPEN MARKET RATES AND IT HAD BEEN THE POLICY SINCE DECEMBER 1978 TO GRADUALLY INCREASE GOVERNMENT RATES TO CLOSE THE GAP.
+THE RECENT INCREASE CONTINUED THIS POLICY AND A REVIEW OF CURRENT RATES SHOWS THAT THERE IS STILL SOME WAY TO GO BEFORE THE RATES BEING CHARGED BY GOVERNMENT FAIRLY REFLECT MARKET RATES,+ HE ADDED.
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