THURSDAY, MAY 3, 1990
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REDEMPTION OF LETTERS B EXPLAINED
THE DIRECTOR OF BUILDINGS AND LANDS, MR TONY EASON, SAID TODAY (THURSDAY) THAT HE WAS CONFIDENT THE MAJORITY OF OUTSTANDING LETTERS B (NEW TERRITORIES LAND EXCHANGE ENTITLEMENTS) WOULD REDEEMED BY 1993.
BR
THE REMARK WAS MADE AT THE OPEN HEARING OF THE PUBLIC ACCOUNTS COMMITTEE (PAC) HELD IN THE LEGISLATIVE COUNCIL CHAMBER.
DURING THE HEARING, MR EASON NOTED THAT THE COMMITMENT CURRENTLY STOOD AT EIGHT MILLION SQUARE FEET, WHICH WAS CONSIDERABLY DOWN FROM THE 37 MILLION SQUARE FEET IN 1983.
HE SAID NO CHANGES TO THE PRESENT SYSTEM OF REDEMPTION WERK CONTEMPLATED.
IN RESPONSE TO THE DIRECTOR OF AUDIT'8 VIEW THAT THE GOVERNMENT WAS FORGOING MORE REVENUE THAN IT SHOULD IN REDEEMING LETTERS B, MR EASON EXPLAINED THAT THE STATEMENT OF THE COMMITMENT MONETARY TERMS IN THE GENERAL REVENUE ACCOUNT WAS HYPOTHETICAL.
IN
HE SAID THE GOVERNMENT WAS REDEEMING AN OUTSTANDING COMMITMENT TO NEW TERRITORIES OWNERS WHOSE LAND HAD BEEN ACQUIRED MANY YEARS AGO TO DEVELOP THE NEW TOWNS. THE EXACT AMOUNT OF THE COMMITMENT WAS HARD TO QUANTIFY BECAUSE OF THE PASSAGE OF TIME.
HE ALSO CONFIRMED THAT A REVIEW OF THE PRESENT SYSTEM OF REDEEMING LETTERS B WAS UNDERWAY AND SHOULD BE COMPLETED BY THE END OF THIS YEAR.
HE SAID THE PROPOSALS MADE BY THE DIRECTOR OF AUDIT, POINTS RAISED IN THE PAC DISCUSSION AND THE QUESTION OF THE RESPECTIVE RIGHTS AND OBLIGATIONS OF THE LETTER B HOLDERS AND THE GOVERNMENT WOULD ALL BE EXAMINED IN THE COURSE OF THE REVIEW.
REVIEW
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HOWEVER, HE STRESSED THAT THE INTENTION OF THE CONFIRM THAT THE PRESENT ARRANGEMENTS SHOULD BE ADHERED TO, NOT TO PROPOSE CHANGES.
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