TNAG-0806-FCO40-1011-Policy-of-Government-of-Hong-Kong-on-land-in-the-New-Territo-1979 — Page 140

5.2

5.2.1'

We believe that the most desirable system should conform to the following basic ideals:

(1)

5.2.2

(ii)

5.2.3

The law of compulsory purchase should be fair, clear, unambiguous and should not except as regards the unlawful or unauthorised use of land, have the effect of limiting the compensation to less than the fair market value of the estate or interest being acquired.

That as a basic rule, the dispossessed owner should be financially reimbursed for his total land taken, severence, injurious affection, disturbance and other incidental costs such

as surveyors and legal fees. Also that reasonable interest on capital from date of entry to date of payment of compensation should be paid so that in monetary terms, he is no worse nor better off than prior to acquisition.

We would define the term "market value" as follows:

(iii)

The price which the land would have fetched on the open market as between willing seller and willing buyer. Such figure would normally exclude any enhancement caused solely by the scheme giving rise to the compulsory acquisition. It would include any value resulting from use of land which, though not in accordance with the lease conditions, has been approved by the Crown but would exclude any value resulting from illegal, or unauthorised use of land.

That if on political, social or humanitarian grounds, it is felt expedient to offer anything over and above normal compensation (such as the offer of accommodation in Government Housing Estates for dispossessed domestic occupants or grave compensation etc.), this should be on an ex gratia basis entirely separated from the assessment of compensation under the Crown Lands Resumption Ordinance, and the right to claim such compensation before a Lands Tribunal should not be prejudiced by the acceptance of such an ex gratia offer.