TNAG-0806-FCO40-1011-Policy-of-Government-of-Hong-Kong-on-land-in-the-New-Territo-1979 — Page 78

21

1

percentage inducement element could

be distorted by paper sales of large

Letter B holdings for artificial prices.

A fixed sum inducement was considered

•

too arbitrary In either case, moreover,

the system would have the disadvantage

of being pegged to Letter B values, which,

as stated above, are subject to contin-

gencies irrelevant to the movement of

actual land values.

Conclusions Regarding the Compensation Rate

4.2

Ideally, to meet its own criteria, it was

desirable for the Working Group to establish a method of

assessing compensation rates. It should be possible at any

time to draw up a sheet containing the relevant particulars

relating to any lot and to deduce from them a compensation

payment in accordance with a prescribed method. However,

after consideration of the merits and demerits of the

many systems discussed, it became clear to the working

Group that it would be impossible to meet this ideal.

Nevertheless, the Working Group noted that from whichever

angle the compensation rate had been looked at, the

results produced figures of between $22 and $29 per

square foot. Figures somewhere between these limits

were substantially above the level of cash compensation

($17 per square foot) offered under the existing

/exchange