TNAG-0809-FCO40-1014-Legislation-for-Crown-lands-in-Hong-Kong-1978 — Page 348

G.S. 84

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8

For discussion

on 28th February 1978

XCR(78)52

Copy No

31

MEMORANDUM FOR EXECUTIVE COUNCIL HKK 365/2

CONVERSION OF CROWN LAND LICENCES

TO SHORT TERM TENANCIES

BALEVAD IN ARGH AT NO. 57 27 FEB 1970

INDER

No

6.28

The present practice in relation to the conversión of Crown. land licences to Short Term Tenancies was explained in information paper XCRI(77)19 (annexed). At the Executive Council meeting on 20th December 1977

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(a) Unofficial Members asked that the introduction of a

maximum rate of annual increase should be considered.

(b) The Acting Governor directed that a further

memorandum should be prepared for Members' consideration.

Review of staged increase in rentals

2

As indicated in paragraphs 5 and 7 of note XCRI(77)19, the Government has accepted that, in the conversion of Crown land licences to short term tenancies, there should be a staged implementation of the increase in rentals. In accordance with the views expressed by the Unofficial Members, the maximum level of increase in rentals per annum for conversion cases has been reviewed.

3

At present the greatest increases in payments will arise from the conversion of a licence covering an area with a substantial number of structures, because, even with the staging proposed in XCRI(77)19, the unit rental would be approximately six times the permit fee. Rather, therefore, than adopt a maximum rate of increase, which would tend to create invidious disparities of rentals between tenants with similar holdings, it is considered that the problem could best be overcome by a modification of the staging proposals, so that the rate in respect of built-over areas is only introduced after the tenant has reached the stage of paying an up-to-date rental for open storage areas. At the same time, it is proposed to introduce an initial period of notice of at least six months, during which the licensee will continue to hold a licence at Crown land licence fees. Thus, from the times of the first approaches made by the Crown Lands and Survey Office to the licensee, the staging will be as follows:

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