XN000022-1995-07-28 — Page 64

- 17.

-

But, through the enactment of the Bill, sub-lessees will have certainty to their sub-leases to 27 June 2047. They will pay Government rent direct to the Government. The Tong will also not be able to delay redevelopment proposals requiring modifications and exchanges of the sub-leased land. As a result, the sources of much of the friction between the sub-lessees and the Tong should be removed. The Bill will achieve a fair, objective and practical solution to the dispute between the two parties and recognize as far as possible their legitimate interests, without taking away any property rights. The title of the sub-lessees to their property would also be clarified, facilitating property transactions in Cheung Chau.

In the course of the Bills Committee's deliberations. Members raised concern that the Bill might confirm the legal status of Wong Wai Tsak Tong as the owner of about 90% of the private land on Cheung Chau and this might weaken the position of the sub-lessees to claim ownership of the sub-leased land. Madam President, I would like to clarify that Wong Wai Tsak Tong is already 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. The Administration's Bill is therefore not aimed to affect the existing status of the Tong and the sub-lessees.

On the other hand, Wong Wai Tsak Tong has expressed concern that the Bill would take away its private property without compensation. I take this opportunity to clarify also that the rights and liabilities of the Tong and a sub-lessee under the sub- leases extended and renewed by the Bill will not be affected by the Bill, except as specifically provided for under the Bill. If a sub-lessee breaches the terms of a sub- lease, the Tong will be entitled to exercise its legal rights against the sub-lessee. By regulating the relationship between the Tong and the sub-lessees, we aim to address the practical problems arising from the dispute between the two parties without taking away legitimate property rights. Since the legal status of the Tong would not be affected by the Bill, we therefore also consider that no compensation to the Tong is

necessary.

Thank you, Madam President.

End/Friday, July 28, 1995

-

+