XN000022-1987-04-14 — Page 2

TUESDAY, APRIL 14, 1987

BILL TO EXTEND NT LEASES TO 2047 TO BE GAZETTED

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A BILL TO EXTEND ALL LEASES IN THE NEW TERRITORIES AND NEW KOWLOON EXCEPT SHORT-TERM TENANCIES AND LEASES FOR SPECIAL PURPOSES, UNTIL JUNE 30, 2047 WITHOUT REQUIRING PAYMENT OF ADDITIONAL PREMIUM WILL BE PUBLISHED IN THE GOVERNMENT GAZETTE ON THURSDAY (APRIL 16).

THE BILL, THE NEW TERRITORIES LEASES (EXTENSION) BILL 1987, WAS ENDORSED BY THE EXECUTIVE COUNCIL ON APRIL 7 AND WILL BE

INTRODUCED INTO THE LEGISLATIVE COUNCIL ON MAY 6.

ALL LEASES IN THE NEW TERRITORIES WILL EXPIRE ON OR BEFORE JUNE 27, 1997.

1997. UNDER THE TERMS OF PARAGRAPH TWO OF ANNEX HI TO THE SINO-BRITISH JOINT DECLARATION, ALL LEASES WHICH EXPIRE BEFORE JUNE 30, 1997, EXCEPT SHORT-TERM TĒNANCIES AND LEASES FOR SPECIAL PURPOSES, MAY BE EXTENDED, IF THE LESSEE SO WISHES, FOR A PERIOD EXPIRING NOT LATER THAN JUNE 30, 2047 WITHOUT PAYMENT OF AN ADDITIONAL PREMIUM.

A GOVERNMENT SPOKESMAN SAID: THERE ARE OVER 30 000 LEASES IN THE NEW TERRITORIES, MANY OF THEM IN MULTIPLE OWNERSHIP, AND IT WOULD BE IMPOSSIBLE IN PRACTICE TO EXTEND EACH OF THEM INDIVIDUALLY.

+THE ONLY PRACTICABLE WAY OF EXTENDING SO MANY LEASES IS BY LEGISLATION.

+ANY PERSON WHO DOES NOT WANT HIS LEASE TO BE EXTENDED AS PROPOSED IN THE BILL WILL NEED TO REGISTER A MEMORANDUM IN THE LAND OFFICE OF THE REGISTRAR GENERAL'S DEPARTMENT WITHIN THREE MONTHS AFTER THE ENACTMENT OF THE BILL, HE ADDED.

THE BILL ALSO PROVIDES FOR THE CHARGING OF AN ANNUAL RENT EQUAL TO THREE PER CENT OF THE RATEABLE VALUE FROM THE DATE THE ORIGINAL LEASE TERM EXPIRES.

IT WILL BE ADJUSTED IN STEP WITH ANY CHANGES IN THE RATEABLE VALUE THEREAFTER. THE RENT OF RURAL LAND HELD BY INDIGENOUS VILLAGERS WILL, HOWEVER,

HOWEVER, REMAIN UNCHANGED.

SHORT-TERM TENANCIES ARE DEFINED IN THE BILL AS LEASES WHICH WERE ORIGINALLY GRANTED FOR A TERM OF NOT MORE THAN SEVEN YEARS. WHEN EXISTING SHORT-TERM TENANCIES FALL DUE, THEY WILL BE DEALT WITH ON THEIR INDIVIDUAL MERITS, AS AT PRESENT, TAKING INTO ACCOUNT LONG-TERM DEVELOPMENT PLAN.

LEASES FOR SPECIAL PURPOSES ARE THOSE GRANTED. USUALLY BY PRIVATE TREATY, FOR SPECIFIC PURPOSES SUCH AS PUBLIC UTILITIES SUBSIDISED SCHOOLS, WELFARE FACILITIES, RECREATIONAL CLUBS, PETROL FILLING STATIONS, KEROSENE STORES, PIERS, CHURCHES, CIVIL SERVANTS' CO-OPERATIVE AND GOVERNMENT BUILT HOUSING SCHEMES, SPECIAL INDUSTRIES AND AIRPORT SUPPORT SERVICES AND INDUSTRIES.

/A COMMON