XN000022-1985-11-19 — Page 12

TUESDAY, NOVEMBER 19, 1985

LADY YOUDE THEN WENT TO SHEK WAI KOK ESTATE AND VISITED

A FAMILY IN SHEK KUK HOUSE.

SHE NEXT CALLED AT THE YAN CHAI HOSPITAL AT YAN CHAI

ION STREET, WHERE SHE WAS BRIEFED ON PLANS TO EXPAND THE INSTITUTION.

THE HOSPITAL IS A CHARITABLE INSTITUTION WITH 175 BEDS AND IS PRESENTLY SERVING AS A DISTRICT HOSPITAL FOR TSUEN WAN AND NEIGHBOURING DISTRICTS.

BEFORE LEAVING TSUEN WAN, LADY YOUDE ALSO VISITED A FACTORY IN TEXACO ROAD WHICH PRODUCES KNITTED APPAREL AND FABRICS.

PLANS TO CHANGE RENT CONDITIONS FOR ARTS CENTRE

*****

THE EXECUTIVE COUNCIL HAS ENDORSED A PROPOSAL TO PERMIT

THE HONG KONG ARTS CENTRE TO LEASE ITS OFFICE SPACE AT PREVAILING MARKET RENTS TO COMMERCIAL, PROFIT-MAKING AND NON-ARTS RELATED ORGANISATIONS.

HOWEVER, ARTS RELATED ORGANISATIONS WISHING TO TAKE UP ACCOMMODATIONS AT THE CENTRE AT FULL MARKET RENT WOULD BE GIVEN PRIORITY AT ALL TIMES.

THE CHANGES ARE AIMED AT IMPROVING THE FINANCIAL POSITION OF THE ARTS CENTRE WHICH HAD BEEN SUFFERING SERIOUS LOSS IN INCOME DUE TO POOR OCCUPANCY OF ITS OFFICE SPACE.

EXPLAINING THE MODIFICATIONS, A GOVERNMENT SPOKESMAN SAID THAT UNDER THE TERMS OF A PRIVATE TREATY GRANTED TO THE ARTS CENTRE IN 1975, VARIOUS SPECIAL CONDITIONS LIMITING THE USE OF THE ARTS CENTRE BUILDING WERE IMPOSED. AMONG OTHER THINGS IT WAS STIPULATED THAT THE GRANTEE COULD ONLY SUBLET THE OFFICE AREAS TO NON-PROF IT-MAKING ARTS RELATED ORGANISATIONS.

DURING THE FIRST YEARS OF ITS ESTABLISHMENT, THE ARTS CENTRE MANAGED TO FILL THE LEASEABLE SPACE TO NON-PROF IT-MAKING ARTS ORGANISATIONS BECAUSE OF THE RELATIVE SHORTAGE IN OFFICE ACCOMMODATION IN WAN CHAI.

HOWEVER, THE POSITION NOW HAD CHANGED RADICALLY DUE TO THE AVAILABILITY OF CHEAPER AND MORE ACCESSIBLE ACCOMMODATION ELSEWHERE. AT PRESENT, FOUR OF THE EIGHT FLOORS OF OFFICE SPACE ARE VACANT.

+THE RENTAL INCOME DERIVED FROM THE OFFICE LEASES HAS CONTRIBUTED 50 PER CENT OF THE ARTS CENTRE'S TOTAL INCOME OVER THE PAST TWO YEARS, AND THE LOSS OF A LARGE PROPORTION OF THIS INCOME IS NOW HAVING A SERIOUS EFFECT ON THE ARTS CENTRE'S ABILITY TO FUNCTION AS WAS ORIGINALLY INTENDED,+ THE SPOKESMAN SAID.