TNAG-0806-FCO40-1011-Policy-of-Government-of-Hong-Kong-on-land-in-the-New-Territo-1979 — Page 74

Encl. 6

4.

17

A NEW COMPENSATION RATE

4.1

Paragraph 2.7 above states the general conclusion

of the Working Group as being that the system must

provide for the owners of private lands to enjoy a

reasonable share of the development profits of the

new areas for which they were required to surrender

their lands. But the assessment of what a reasonable

share would be was not easy. The Working Group

approached the assessment of a compensation rate from

a number of different angles, the principal ones of

which were :

4.1.1

Local development value method ~

This method is illustrated for Tsuen

Wan and Yuen Long in Enclosure 6.

It seeks to establish the value which

each square foot of surrendered land

contributes to the value of the total

development, by deducting the expenditure

on infrastructural development from the value

of the land made available for disposal,

the residue being the element contributed

by the land, both Crown and private, used

for the development. In the two examples

the unit development value works out at

$24.10 per square foot for Tsuen Wan

and $23.70 per square foot for Yuen Long.

/on