XN000022-1981-09-04 — Page 2

FRIDAY, SEPTEMBER 4, 1981

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FS LAND POLICY HELPS STABILISE PRICES

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THE GOVERNMENT BELVES THAT ITS POLICY OF PRODUCING AND SELLING MORE LAND IS THE ONLY SENSIBLE WAY TO STABILISE LAND PRICES, THE FINANCIAL SECRETARY, MR JOHN BREMRIDGE, SAID TODAY (FRIDAY).

TO ILLUSTRATE THAT THE POLICY CAN WORK AND THAT THE GOVERNMENT DOES NOT CUT BACK ITS SALES PROGRAMME TO HOLD UP LAND PRICES, THE FINANCIAL SECRETARY POINTED TO THE RECENT PROGRAMME OF SALES OF INDUSTRIAL LAND IN KOWLOON BAY WHERE PRICES PEAKED EARLY ON AND HAVE SINCE FALLEN SUBSTANTIALLY.

+1 CAN ASSURE THAT GOVERNMENT HAS NO INTENTION OF MODIFYING ITS SALES PROGRAMME BECAUSE OF THIS OUTCOME, WHICH INDEED IT REGARDS AS DESIRABLE,+ MR BREMRIDGE SAID AT THE DINNER OF THE FEDERATION OF HONG KONG INDUSTRIES.

HE EXPLAINED THAT THE GOVERNMENT SEEKS TO ASSIGN LAND IN A FAIR AUCTION TO THE BUYER WHO OFFERS THE HIGHEST PRICE IN THE BELIEF THAT THIS ENSURES THAT IT GOES TO THE USER WHO CAN BEST PROFIT FROM IT.

+CROWN LAND IS NOT WITHHELD FROM THE MARKET IN ORDER TO RESTRICT SUPPLY WITH A VIEW TO MAINTAINING HIGH PRICES. THE PRICE AT WHICH LAND IS SOLD IS THE PRICE WHICH THE MARKET CONSIDERS THAT LAND TO BE WORTH.+

THE FINANCIAL SECRETARY POINTED OUT THAT THERE HAVE BEEN ONLY FIVE WITHDRAWALS FROM AUCTION THIS YEAR, WHEN BIDS FAILED TO REACH THE STARTING PRICE — AND TWO OF THEM REFLECTED SPECIAL COVENANTS FOR DANGEROUS GOODS STORAGE.

THREE LOTS HAVE ALREADY BEEN RE-AUCTIONED AND SOLD, WHILE THE OTHER TWO WILL BE RESUBMITTED TO AUCTION AND THEN BE SOLD AT A FAIR MARKET PRICE, HE SAID.

+OUR ONLY AIM IS TO AVOID ANY RISK OF A RIGGED AUCTION, FOR THE LAND AND THE SALES PROCEEDS AFTER ALL BELONG TO THE COMMUNITY.

+ IT IS NOT THAT THE GOVERNMENT HAS A HIGH LAND PRICE POLICY, BUT RATHER THAT THERE IS AN ACTIVE DEMAND FOR COMPLETED PROPERTY IN HONG KONG, HE ADDED.

TURNING TO TECHNICAL SERVICES PROVIDED. TO, AND GOVERNMENT SUPPORT FOR INDUSTRY, MR BREMRIDGE SAID THE INDUSTRIAL DEVELOPMENT BOARD WHICH WAS ESTABLISHED BY THE GOVERNMENT IN AUGUST LAST YEAR TO PLAN, MONITOR AND ADVISE ON VARIOUS PROGRAMMES OF INDUSTRIAL DEVELOPMENT, IS ONE DEMONSTRATION THAT THE GOVERNMENT DOES ASSIST INDUSTRY IN A POSITIVE WAY.

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