XN000022-1977-06-01 — Page 25

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COMPENSATION FOR LAND RESUMPTION

BASED ON MARKET VALUE

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THE SECRETARY FOR THE ENVIRONMENT, THE HON. DEREK JONES SAID TODAY IN RECENT LAND RESUMPTION CASES THE NEW RATEABLE VALUE AND ASSESSABLE VALUE OF THE PREMISES WERE TAKEN INTO ACCOUNT IN ARRIVING AT THE COMPENSATION OFFERED TO THE PROPERTY OWNER.

IN REPLY TO A QUESTION FROM THE HON. S.L. CHEN IN THE LEGISLATIVE COUNCIL, MR. JONES SAID THE MEASURE OF COMPENSATION IN RESUMPTION CASES IS THE OPEN MARKET VALUE OF THE RELEVANT INTEREST, SUBJECT TO VARIOUS RULES LAID DOWN IN THE CROWN LANDS RESUMPTION ORDINANCE.

HE SAID WHEREVER POSSIBLE THE GOVERNMENT VALUER, IN ARRIVING AT HIS ESTIMATE OF MARKET VALUE, HAS REGARD TO RECENT TRANSACTIONS IN COMPARABLE PROPERTIES IN THE OPEN MARKET.

THE VALUER THUS TAKES ACCOUNT OF THE NEW RATEABLE VALUE AND ASSESSABLE VALUE TO THE EXTENT THAT THEY INFLUENCE THOSE TRANSACTIONS, MR. JONES ADDED.

HE ALSO NOTED THAT WHERE THERE HAVE BEEN NO COMPARABLE TRANSACTIONS OR THE TRANSACTIONS DO NOT FOR SOME REASONS REFLECT CURRENT MARKET VALUES, THE GOVERNMENT VALUER WILL CARRY OUT A MORE DETAILED STUDY OF RENTS RECEIVABLE AND OTHER FACTORS SUCH AS THE CURRENT RATING VALUATION BEFORE HE DECIDES ON THE PRICE WHICH THE GOVERNMENT SHOULD OFFER.

LAW CONTROLLING INSURANCE BUSINESS BEING REVIEWED

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THE REGISTRAR GENERAL IS REVIEWING THE WHOLE QUESTION OF THE LEGISLATION CONTROLLING INSURANCE BUSINESS IN HONG KONG WITH A VIEW TO RATIONAL ISING IT BRINGING IT UP TO DATE, THE ACTING FINANCIAL SECRETARY, THE HON. DAVID JORDAN, SAID IN THE LEGISLATIVE COUNCIL TODAY.

HE WAS REPLYING TO A QUESTION FROM THE HON. WONG LAM WHO ASKED WHETHER THE GOVERNMENT WOULD CONSIDER INCREASING THE AMOUNTS OF DEPOSIT OR PAID-UP CAPITAL REQUIRED UNDER THE LIFE INSURANCE COMPANIES ORDINANCE.

MR. JORDAN SAID THAT THE GOVERNMENT DID NOT PROPOSE TO INCREASE THE DEPOSIT REQUIRED UNDER THE ORDINANCE AND ADDED: + CAN ASSURE MR. WONG THAT THIS IS ONLY BECAUSE IT SEEMS TO US VERY DOUBTFUL WHETHER SUCH DEPOSITS ARE A GOOD WAY OF PROTECTING THE POLICY HOLDERS.+

TURNING TO THE QUESTION OF AN INCREASE IN PAID-UP CAPITAL, MR. JORDAN POINTED OUT THAT THE PRESENT LEGISLATION INCLUDED NO SUCH REQUIREMENTS AS TO PAID-UP CAPITAL BUT THE GOVERNMENT AND REPRESENTATIVES OF THE INDUSTRY WITH WHOM THE REGISTRAR GENERAL HAD DISCUSSED THIS MATTER BOTH AGREED THAT THE NEW LEGISLATION SHOULD INCLUDE SUCH REQUIREMENTS.

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