TNAG-0809-FCO40-1014-Legislation-for-Crown-lands-in-Hong-Kong-1978 — Page 350

For information

XCRI(77)19 Copy No.

NOTE FOR EXECUTIVE COUNCIL

SHORT TERM TENANCIES

It is the Government policy to allow the temporary use, wherever possible, of lands not yet required for permanent develop- foment. There are two ways of making such lands available for consumers temporary use:

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By Crown land licence under the Crown Lands Ordinance (formerly under the Summary Offences Ordinance). This was the general practice until the mid-sixties and it remains a useful way in which minor permissions for the use of small areas of land may be given. But for larger areas used for substantial commercial storage or for other commercial use, licensees are, unsatisfactory, both to Government in that they do not provide a satisfactory revenue, as well as to licensees in that they provide no security of tenure or proper legal interest in land. The legal position of the ex- licensee whose tenure has expired on effluxion of time is not always completely clear and there have been difficulties on clearance.

By short term tenancy. Since the mid-sixties, it- has been the policy to let out all substantial areas of land by short term tenancy, which gives the tenant a better defined security of tenure, secures for the Government a better return and enables the Government to define the development and use restrictions in a As formal legal tenancy documént. The general policy

for new short term tenancies is that they are normally for open storage with minimal ancillary buildings for watchmen only. The term is one year certain and quarterly thereafter. Tenancy rentals are capable of valuation in different areas, but because of shortage of staff and the comparatively low return on staff time which can be earned from this exercise, rentals have been charged on a flat basis reflecting a low average of the rentals which are being paid in the private market for temporary occupation of land for similar purposes. Between 1968 and early 1977, the approved rates were $3 per square foot for open space and $6 per square foot for built over areas. In early 1977, after a review of private sector rentals, the rates