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As regards financial viability, the opportunity for private developers to enter into joint ventures with the LDC will help reduce the risk of projects and mobilise private capital. A linked site approach could also be tried out. This could take the form of granting a site to the LDC or the Housing Society for the construction of rehousing flats to be linked specifically to a particular project. Alternatively, a site on new land, possibly on reclaimed land or in the New Territories, could be granted to a developer to be developed for profit in the normal way, on condition that he also took on the development of an urban renewal site which was not, in itself, commercially viable. The developer would pay a premium based on the value of both sites and would be expected to use profits from the viable site to subsidise the non-viable one. This is a new idea and requires careful consultation with the industry and with the Sino-British Land Commission. Initially we envisage limiting this approach to LDC projects.

Mr President, I have given a brief overview of the ideas on which the Administration wishes to exchange views with Members of this Council, the general community and professionals in the development industry in the near future. I do not pretend that they represent a panacea. There is no quick and easy solution to the problems of urban renewal as experience in cities throughout the world shows us. What we have to do is identify long-term strategies to at least reduce and moderate the individual problems inherent in urban renewal, for some of them admit of no complete solution.

Mr President it behooves me to say something about timing. I have heard much from Members tonight in this debate; much of it thoughtful and constructive; and some critical. I shall take all these views into account and put the ideas I outlined into a consultation document; short but going into rather more detail than I have been able to tonight. That document will be sent to the Planning, Land and Works and Housing Panels of this Council, District Boards and to other organisations and groups with án • interest in this issue for their views and comments. I hope to do so before summer this year. Based on the views to be collated, we shall work out our final proposals and an implementation strategy by autumn this year. Thereafter, we intend to select a number of pilot projects to test out the measures to be adopted.

Mr President, I am afraid that the rhetoric of "extreme regret" and reproval in the wording of the Motion forces me to oppose it on behalf of the Administration. Nevertheless, I hope that Members will agree that what I have said tonight demonstrates our commitment to getting to grips with this vitally important issue. I also hope that I can look to Members for their support and assistance in formulating workable policies which will lay the foundation of a better urban environment for Hong Kong in the decades to come.

End/Wednesday, May 24, 1995

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