XN000022-1996-05-08 — Page 63

42

Answer:

Mr President,

End

(a)

(b)

(c)

(d)

The number of redevelopment and renovation projects completed by the Land Development Corporation since its establishment in 1988 is eight.

Owing to the nature of the Corporation's operation and the involvement of joint venture partners in some of the projects, it is not appropriate to disclose the detailed financial data of individual projects. There are adequate provisions in the Land Development Corporation Ordinance to ensure that the financial accounts of the Corporation are subject to proper auditing and monitoring, including the tabling of the auditor's report in the Legislative Council annually;

As at 1 May 1996, four of the redevelopment projects undertaken by the Land Development Corporation involved resumption;

As at May 1996, about 450 tenants affected by the Land Development Corporation's projects have been rehoused; and

There are comprehensive statutory and administrative measures to ensure that the Land Development Corporation's redevelopment projects are for the benefits of the community. Its functions and activities are decided and supervised by a Managing Board appointed by the Governor and composed mainly of non-official members. Under the Land Development Corporation Ordinance, the principal purpose of the Corporation is to improve the standard of housing and environment in Hong Kong by undertaking, encouraging, promoting and facilitating urban renewal. Before the Corporation is given approval to initiate a new project, it is required to submit detailed plans to the Government and demonstrate that the proposed project will improve the environment of the project area. Where a change of zoning under the Town Planning Ordinance is required, the project has to be submitted to the Town Planning Board for approval. The Board will take into account the impact of the proposed project on the environment in its consideration.

The Land Development Corporation is not a profit-seeking organisation, but rather a public statutory body operating in accordance with prudent commercial principles. Seeking "excessive profit" is not an object of the Corporation. All surpluses generated by projects are ploughed back into future urban renewal schemes. As a safeguard against the Land Development Corporation acquiring excessive reserves, the Financial Secretary is empowered under the Land Development Corporation Ordinance to require the Corporation to transfer funds to the general revenue. However, this has not proved necessary to date.