TNAG-0615-FCO40-763-Visit-by-delegation-from-Heung-Yee-Kuk-(Rural-Consultive-Cou-1997 — Page 23

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

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11.

With regard to the provision of services recent discussion with you, and factual data provided by the Secretary for the New Territories, has I trust reassured you of Government's intentions. The Secretary will discuss with you the timing of these improvements.

12.

With regard to the policy of permitting villagers to build houses for themselves, it is not intended to prevent individual villagers from building houses within the environs of the villages, It was necessary to make some changes to the village house policy in 1976 in order to curtail widespread abuse. In many cases, scarce land was obtained on concessionary terms for villagers' use and later sold to outside purchasers at considerable profit thus depriving villagers of land which may be needed for genuine village expansion. .Where possible, village extension areas will be defined.

13.

Some of the plans for the towns of the New Territories have been prepared under the consultative procedures established by the Town Planning Ordinance. There has also been local discussion of other plans. In general, Rural Committees are well aware of the plans for development in their respective areas. I agree that there should be consultation and exchange of views about these plans at an appropriate time.

14.

With regard to the freezing of land, landowners in areas of proposed development may continue to use their land in accordance with its existing status. The develop- ment potential of such land arises from Government's plans for urban development and from the provision of services. such as roads, water supply, etc. In order to allow owners of land in the areas affected by development an opportunity to surrender their land before development, a land exchange system known as the "Special Acquisition Area System" was devised. At your suggestion, the value of this land has recently been reassessed. In some development areas agriculture may have become difficult, although this is often because other land has been abandoned and water courses have become obstructed. The New Territories Administration is always willing to discuss particular problems with those concerned.

15.

The present land exchange system was devised in 1961 as an alternative to cash compensation. Since then, the vast majority of landowners have preferred to accept a land exchange entitlement (Letter B) rather than cash. Acceptance of the exchange offer is voluntary and once a surrender is made I can see no reason to pay interest. The value of these exchange entitlements has risen very considerably since the exchange system was introduced (as land values continue to increase) because the premium payable is moderately assessed and is related to the date of surrender.

16.

You have raised, in discussion with the Secretary for the New Territories, the question of the surrender of, small land holdings. As a result, some smaller exchange lots will be offered in forthcoming exchange programmes.

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