XN000022-1973-11-12 — Page 2

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Monday, November 12, 1973

COMPENSATION FOR SQUATTER FACTORIES

The Housing Authority is preparing to spend millions of dollars to

compensate owners of squatter. factories that have to be cleared for development.

This is to help them re-establish their business in the private sector.

Under the old policy, owners of surveyed industrial undertakings

were offered units in Housing Authority flatted factories.

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From now on the new policy which is more generous and flexible will

calculated on the allow ex-gratia compensation of $20 per square foot

differential between Housing Authority Factory Rent and those in the open

market. To minimise hardship for small operators with premises under 300

square feet, a minimum of $6,000 will be paid.

The new policy has been adopted because of a severe shortage of

Housing Authority flatted factory units brought about by the increase in the

major development projects including the 10-year housing programme and the

Mass Transit Railway. It is estimated that in the next two years 2,800

flatted factory units of 256 square feet will be needed to reprovision operators

displaced by scheduled clearances.

Another factor behind the change is the large number of operators

whose trades are unsuitable for Housing Authority flatted factories, and who

re-assign their units rather than change trade. A problem has also arisen

because of the large number of operators requiring single units. Because

of the design of the factory building, only a limited number of these can

be allocated.

/In future