XN000022-1995-06-07 — Page 44

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Wong Wai Tsak Tong Bill

Following is the speech by the Secretary for Planning. Environment and Lands. Mr Bowen Leung, in moving the second reading of the Wong Wai Tsak Tong (Renewal and Extension of Sub-leases) Bill in the Legislative Council today (Wednesday):

Mr President,

I move the second reading of the Wong Wai Tsak Tong (Renewal and Extension of Sub-leases) Bill.

The Wong Wai Tsak Tong is the registered owner of about 90% of the private land on Cheung Chau. The Tong holds the land under the Block Crown Lease dated 18 March 1905 and under several new grants made after that date, with the leases and grants expiring on 27 June 1997. Most of the land owned by the Tong has been sub- . leased on renewable five year terms.

The New Territories Leases (Extension) Ordinance extended the term of most New Territories leases, including that of the Tong, to 30 June 2047.

During the late 1980s, disputes began to arise between the Tong and the sub- lessees. The main areas of concern were related to the renewal of sub-leases, payment of Government rent and redevelopment of the sub-leased land. Attempts to resolve the disputes in the courts failed. In November 1994, most of the sub-leases expired. However, owing to the disputes between the two parties, we understand that a majority of the sub-leases have not been renewed.

These are prima facie private disputes between the Tong and its sub-lessees and should be resolved between the two parties. However, the disputes have over the years built up to the extent that they are undermining Government's proper land administration on Cheung Chau and causing social unrest in the community. Property transactions on Cheung Chau arc currently effectively frozen as a result of the dispute, which has led to many sub-leases not being renewed creating uncertainty to title. These are public issues which Government must address.

The purpose of the Wong Wai Tsak Tong (Renewal and Extension of Sub- leases) Bill is to introduce an objective, practical and fair solution to address the points of dispute between the Tong and the sub-lessces.