XN000022-1995-06-28 — Page 36

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Experience, however, has shown that the present level of fines under the Ordinance is too low to serve as a sufficient deterrent against unauthorised development. Only about 38% of the convicted unauthorised development cases have been discontinued. Even among the discontinued unauthorised developments, some of them have revived a few months later. For those unauthorised developments which have not ceased operation, many of the occupiers have removed their signboards on site so that further enforcement action and prosecution actions against them have become more difficult and time-consuming. This is not altogether surprising as the profits generated from unauthorised developments can be very substantial, as compared with the rather low fines on the convicted persons responsible for the unauthorised developments. For a typical 10,000 square meter container yard in the New Territories, monthly profit can be in the region of $90,000. This level of profit can be maintained for periods up to two years after enforcement action has commenced and before the person responsible is convicted.

As a result, the effectiveness of the Administration's enforcement actions have been considerably affected. This could also render the vast amount of resources devoted to tackling the problem nugatory. The Administration are determined to contain unauthorised developments in the New Territories and thus consider it necessary to seek to provide as quickly as possible a more effective deterrent by raising substantially the penalties for convicted offenders.

This resolution provides for the increase in the maximum fine for which convicted persons will be liable under the Town Planning Ordinance. Specifically we propose that the penalty under Sections 20(8), 21(2) and 23(6) of the Ordinance be increased to a fine of $500,000 on first conviction, and to $1,000,000 on each of second and subsequent convictions, whilst the daily fine under Section 23(6) for a continuing offence be increased to $50,000 for first conviction, and $100,000 for each of second and subsequent convictions. These proposed levels of fines are the maximum the Court can impose on unauthorised developments. They also take into account the monthly turnover and profit margin of a typical container yard in the New Territories.

While taking enforcement action against unauthorised open storage of containers, the Administration is aware of the need to make available sufficient sites for open storage in the territory. In this connection, a total of about 333 hectares of land have been zoned "Open Storage" and "Other Specified Uses (Open Storage)" on rural outline zoning plans to provide a planning framework for such uses. Apart from being able to accommodate the 150 hectares of unauthorised open storage uses, these sites could also help absorb a large part of the 360 hectares open storage uses which were identified to have existed before the amendment to the Ordinance in 1991, for which enforcement action is not taken under the Ordinance.

Mr President, I beg to move.

End/Wednesday, June 28, 1995

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