3.
Govt resolving lease dispute in Cheung Chau
The Government is pressing ahead with proposals to resolve the dispute between Wong Wai Tsak Tong and its sub-lessees in Cheung Chau.
A spokesman for the Planning, Environment and Lands Branch explained that the Government could not unilaterally abolish the legal position of the Tong as the Crown Lessee under the Block Crown Lease.
To address the sub-lessees' concerns regarding the renewal of their sub-leases, the payment of Government rent and fees charged by the Tong for agreeing to lease modifications and land exchanges, the Government is in the process of drafting legislation for introduction to the Legislative Council in April next year to regulate the Tong's relationship with the sub- lessees.
The proposed legislation will renew the great majority of sub-leases registered in the Land Registry, through to 2047.
The proposed legislation will also enable sub-lessees to pay Government rent directly to the Government and to allow the Tong to collect from the sub-lessees the amount specified in the sub-leases, but no other charges and fees.
Finally, the Tong will be deemed under the legislation to have given its consent for lease modifications and land exchanges sought by the sub-lessees. In return, the Tong would be allowed to charge a fee equivalent to no more than 10 per cent of the premium chargeable by the Government for the grant of a lease modification or land exchange.
The spokesman said, subject to the enactment of the legislation, implementation of these measures should largely address the concerns of the sub-lessees while taking account of the legal and other interests of both sides as far as possible.
end/Tuesday, December 6, 1994