Land exchange entitlements redeem in cash only after June
The Government gazetted today (Friday) the New Territories Land Exchange Entitlements (Redemption) (Amendment) Bill 1997 which seeks to make land exchange entitlements redeemable for cash only rather than land after a date, as currently planned, in June 1997 to be appointed by the Secretary for Planning, Environment and Lands.
The Bill adjusts the rates of redemption money set out in the Schedule to the New Territories Land Exchange Entitlements (Redemption) Ordinance, to be the monetised values of land exchange entitlements effective from April 1, 1997. These values would then be the most up-to-date available when the Ordinance comes into operation in June 1997.
"After the commencement of the Ordinance, any outstanding land exchange entitlements, commonly known as Letters A/B, can only be redeemed in cash. Redemption money will be payable at the rates set out in the Ordinance. It will bear interest from the commencement date of the Ordinance until the date of payment," a Government spokesman said.
Letters A/B were issued between 1960 and 1983 to land owners in the New Territories whose land was required for developments. The issue of Letters A/B was stopped in 1983 because of increasing difficulties in meeting the exchange commitment. Since 1984, holders of Letters A/B have been allowed to exchange their entitlements for either land or cash.
Redemption by cash has been based on the monetised values of land exchange entitlements. These values are revised and gazetted twice a year having regard to the movement of property prices in the New Territories. The most up-to-date values has been effective from April 1, 1997.
The Bill will be introduced into the Legislative Council on April 30, 1997.
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