WEDNESDAY, MARCH 23, 1994
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TIGHT CONTROL OVER LAND DISPOSAL BY PUBLIC UTILITY COMPANIES
*
THE ADMINISTRATION WILL SHORTLY CONDUCT A REVIEW OF HOW PROCEEDS FROM FUTURE LANDS SALES BY PUBLIC UTILITY COMPANIES SHOULD BE TAKEN INTO ACCOUNT IN DETERMINING FARES WHEN THE SITES CONCERNED ARE NO LONGER REQUIRED FOR THE FRANCHISED OPERATIONS.
THE IN
MEANTIME, THE ADMINISTRATION WILL NOT CONSIDER FURTHER APPLICATIONS PERTAINING TO THE RELEASE OF DEPOT SITES OF COMPANIES,
ANY
BUS
MR
THIS WAS STATED BY THE SECRETARY FOR ECONOMIC SERVICES, GORDON SIU, IN A WRITTEN REPLY TO A QUESTION BY DR THE HON CONRAD LAM IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).
MR SIU SAID SITES MIGHT BE GRANTED TO PUBLIC UTILITY COMPANIES FOR APPROPRIATE UTILITY PURPOSES, ONLY IF THE COMPANY CONCERNED DID NOT DISPOSE THE LAND GRANTED WITHOUT THE GOVERNMENT'S PERMISSION.
HE SAID SUCH LAND WAS GRANTED BY PRIVATE TREATY AT FULL VALUE AND SUBSEQUENT ASSIGNMENT, TRANSFER AND MORTGAGING PROHIBITED.
MARKET
WERE
THESE COMPANIES MAY BE ALLOWED TO REDEVELOP SITES IN THE URBAN AREAS IF THERE IS ADVANTAGE IN MOVING THEIR FACILITIES AWAY FROM DENSELY POPULATED AREAS TO ALLOW BETTER USE OF THE LAND AND TO REALISE PLANNING GAINS,
"SUCH REDEVELOPMENTS WOULD NORMALLY REQUIRE A MODIFICATION OF THE LEASE CONDITIONS AND THE UTILITY COMPANIES WOULD BE REQUIRED ΤΟ PAY FULL MARKET VALUE PREMIUM AND GIVE AN UNDERTAKING NOT TO SEEK A FURTHER GRANT OF LAND BY PRIVATE TREATY IN THE SAME
AREA, MR SIU
SAID.
it
WHERE PUBLIC UTILITY COMPANIES HAVE ACQUIRED LAND ON THE OPEN MARKET AND THERE ARE NO RESTRICTIONS ON ASSIGNMENT OR TRANSFER, SUCH LAND CAN BE DISPOSED OF:
* IF IT IS NO LONGER REQUIRED FOR THE EFFICIENT
THE COMPANY; OR
OPERATION OF
* IF IT IS NO LONGER SUITABLE FOR THE PURPOSE IT WAS ORIGINALLY ACQUIRED AS A RESULT OF POPULATION MOVEMENT OR SHIFTS IN THE PATTERN OF DEMAND.
WHERE LAND REQUIREMENTS CAN CHANGE OVER TIME, SUCH AS THOSE RELATING TO BUS DEPOTS, LAND WILL BE PROVIDED ON A SHORT-TERM TENANCY BASIS.
"THE COMPANY CONCERNED PAYS RENT FOR THE LAND AND THIS IS ACCOUNTED FOR AS AN OPERATING EXPENSE.
++
"AS SUCH TENANCIES INVOLVE NO CAPITAL EXPENDITURE, THEY HAVE NO IMPACT ON THE COMPANY'S AVERAGE NET FIXED ASSETS OR PERMITTED RETURN, HE SAID.
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