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We take the view that the Bill should not have any retrospective effect on agreements between Wong Wai Tsak Tong and the sub-lessees which have been granted or renewed for any period extending beyond 9 November 1994 and under which agreement the Tong and the sub-lessees have agreed on the amount of rent payable to the Tong after 30 June 1997. These sub-leases have been granted or renewed before the commencement of the Bill and should not be deemed as Crown In addition. Mr Lee's proposed leases upon the commencement of the Bill. amendment may increase Government's compensation to the Tong, which is taxpayer's money. There is no reason for subsidising those sub-lessees, some of them being property developers, who have already renewed their sub-leases with the Tong under private arrangements.
Mr Lee also queried whether Government could quote any example on the contracts of the external compensation. I should like to point out that it is again a private transaction between the Tong and the sub-lessees and the Government has no authority to enter into the Tong's premises and demand to see the records. Hence those sub-leases which have been presented to Members by Mr Lee might have been lopsided or just signed towards one side of the sub-leases on Cheung Chau. And I doubt whether Mr Lee Wing-tat have or have not seen all those sub-lcases, some of which were signed very voluntarily.
In addition, the number of sub-leases which has been granted or renewed beyond 9 November 1994 is unknown to us. The terms they contain may vary significantly from one to another. It cannot be assumed, as Mr Lee does, that all of them are of similar terms as the previous sub-leases. There is therefore a danger that Members may be given an incomplete picture or even misinformation about the financial implications of the proposed amendment on Government.
Nevertheless, the original clause 4 of the Bill requires some clarification. I therefore intend to move an amendment to the Bill so as to exempt sub-leases extended beyond November 1994 and under which the amount of rent payable to the Tong after 30 June 1997 have been agreed by the Tong and the sub-lessees from the provisions of sections 4 and 5 of the Bill.
In addition, I would also propose an amendment to stipulate that these sub- leases should be deemed to be granted upon the commencement of the Bill new sub- leases by the Wong Wai Tsak Tong for the residue of their terms.