MONDAY, NOVEMBER 28, 1983
LAND EXCHANGE ENTITLEMENTS TO BE MONETISED
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THE GOVERNMENT IS TO MONETISE LETTERS B (LAND EXCHANGE ENTITLEMENTS) IN AN EFFORT TO REDUCE ITS COMMITMENT TO PROVIDE 15 MILLION SQUARE FEET OF BUILDING LAND FOR THEIR REDEMPTION.
A SPOKESMAN FOR THE LANDS DEPARTMENT SAID TODAY (MONDAY) A CURRENCY VALUE WOULD BE ATTACHED TO LETTERS B FROM APRIL 1 NEXT YEAR SO THAT HOLDERS WOULD BE ABLE TO USE THEM IN A MUCH WIDER RANGE OF LAND TRANSACTION PAYMENTS THAN UNDER THE PRESENT SYSTEM.
THE GOVERNMENT WAS CONFIDENT SUCH AN ARRANGEMENT WOULD ALLOW FOR QUICKER REDEMPTION OF THE COMMITMENT, THE SPOKESMAN SAID.
HE SAID THAT IN THE NEW TERRITORIES HOLDERS WOULD BE ABLE TO USE MONETISED LETTERS B TO PAY PREMIUMS WHEN TENDERING FOR SITES, TO BUY LAND AT AUCTIONS AND TO PAY PREMIUMS WHEN A SITE WAS GRANTED BY PRIVATE TREATY,
THEY COULD ALSO BE USED TO PAY FOR LICENCES, EXTENSIONS AND BUILDING COVENANT PREMIUMS.
HE SAID THE +CASH VALUE OF A LETTER B WOULD DEPEND ON WHEN IT WAS ISSUED.
AN AVERAGE FIGURE HAD BEEN ARRIVED AT, BASED ON THE CURRENT PRICES OF VARIOUS TYPES OF LAND IN DIFFERENT PARTS OF THE NEW TERRITORIES, RANGING FROM A HIGH OF $290.60 PER SQUARE FOOT FOR LETTERS B ISSUED IN 1960 TO A LOW OF $19.00 FOR THOSE ISSUED IN MARCH THIS YEAR.
HE POINTED OUT THAT THESE FIGURES WOULD BE REVISED EVERY SIX MONTHS TO TAKE ACCOUNT OF CHANGING LAND VALUES.
THE SPOKESMAN SAID DEVELOPERS WOULD HAVE THE OPTION OF SUBMITTING TENDERS UNDER THE PRESENT SYSTEM, WHICH GIVES PREFERENCE TO OLDER LETTERS B, OR TENDERING WITH MONETISED EXCHANGE ENTITLEMENTS.
TENDERS WHERE OLDER LETTERS B WERE SUBMITTED WOULD CONTINUE
TO BE GIVEN PRIORITY AND THE BEST TENDER WOULD WIN THE SITE.
WHERE THESE TENDERS WERE ACCEPTED THE PREMIUM COULD BE SETTLED IN CASH OR IN MONETISED LETTERS B.
IF THERE WERE NO TENDERS USING OLDER LETTERS B THE HIGHEST MONETISED LETTER B TENDER WOULD WIN,
PAYMENT WOULD BE MADE ENTIRELY IN MONETISED LETTERS B.
IF THERE WERE NO ACCEPTABLE MONETISED LETTER B TENDERS, THE LAND WOULD BE SOLD BY AUCTION.
THE SPOKESMAN SAID IN OTHER TRANSACTIONS THE LESSEE WOULD HAVE THE OPTION OF MEETING THE PAYMENT IN CASH OR IN MONETISED LETTERS B OR IN A COMBINATION OF BOTH.
THE SPOKESMAN SAID THE NEW SYSTEM HAD BEEN DISCUSSED WITH THE MAIN LETTER B HOLDERS AND WITH THE HEUNG YEE KUK.
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