THURSDAY, NOVEMBER 6, 1986
15
PRIVATE SECTOR CAN BUILD UP INFRASTRUCTURE
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THE PRIVATE SECTOR HAS MUCH TO OFFER TO THE DEVELOPMENT AND MAINTENANCE OF HONG KONG'S MODERN INFRASTRUCTURE, GIVEN ENCOURAGEMENT, FACILITATION AND A FIRM PUSH IN THE RIGHT DIRECTION,
THIS WAS STATED BY DR THE HON HENRIETTA IP WHEN SPEAKING DURING THE SECOND DAY OF THE POLICY DEBATE IN THE LEGISLATIVE COUNCIL TODAY (THURSDAY).
SHE SAID THERE WAS A CONSIDERABLE AMOUNT OF LAND WHICH HAD THE POTENTIAL FOR RE-DEVELOPMENT ON MODIFICATION OF THE LEASE CONDITIONS.
AND, IN ACCORDANCE WITH THE JOINT DECLARATION, MODIFICATIONS OF THE CONDITIONS SPECIFIED IN LEASES GRANTED BY THE GOVERNMENT MIGHT CONTINUE TO BE GRANTED BEFORE JULY 1, 1997 AT A PREMIUM, SHE NOTED.
THE PREMIUM IS EQUIVALENT TO THE DIFFERENCE BETWEEN THE VALUE OF THE LAND UNDER THE PREVIOUS CONDITIONS AND ITS VALUE UNDER THE MODIFIED CONDITIONS.
+ THE QUESTION IS HOW TO PUT THIS THEORETICAL CALCULATION INTO PRACTICE AND ARRIVE AT A FAIR AND BALANCED PREMIUM SO AS TO CAUSE THE RE-DEVELOPMENT OF SUCH POTENTIAL SITES.
+VERY OFTEN, THE EXPERIENCE IS THAT THE DEMAND FOR EXCESSIVE PREMIUM RARELY JUSTIFIES THE LANDLORD'S FINANCIAL OUTLAY TO DEMOLISH EXISTING BUILDINGS, COMPENSATE TENANTS AND PAY THE PREMIUM AS WELL AS BEAR THE RISK OF RISING BANK INTEREST AND AN UNCERTAIN MARKET,+ DR IP SAID.
SUCH SITES WERE THEREFORE ABANDONED BY THE LARGE PROPERTY DEVELOPMENT CORPORATIONS, SHE ADDED.
DR IP SAID THAT FAILURE BOTH TO TAP THE POTENTIAL PREMIUM DUE TO UNREASONABLE TERMS AND TO DEVELOP SUCH LAND SPACE WAS A LOSS NOT ONLY TO THE LANDLORD, BUT ALSO TO THE GOVERNMENT, THE POTENTIAL FLAT OWNERS, THE NEIGHBOURS OF THESE DILAPIDATED BUILDINGS AND ALSO THE TAXPAYER.
IN THE PUBLIC INTEREST, SHE SUGGESTED THAT THE GOVERNMENT INCREASE THE APPELLATE JURISDICTION OF THE LANDS TRIBUNAL TO COVER THE FAIR ASSESSMENT OF PREMIUM FOR LEASE MODIFICATION.
/DH IP