TNAG-0809-FCO40-1014-Legislation-for-Crown-lands-in-Hong-Kong-1978 — Page 351

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were revised to $65 per square metre ($6 per square foot) and $130 per square metre ($12 per square foot) respectively."

Conversion of Crown Land Licences to

Short Term Tenancies

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Since 1974 it has been the policy to convert all Crown land licences other than those for domestic and agricultural -qol purposes to short term tenancies. This was the logical consequence

of a general changeover to new short term tenancies, as it would be unreasonable to have different people paying different rates for the same uses, and it was in any case considered appropriate that persons enjoying the use of land for commercial purposes should pay a realistic rent. Moreover, the Director of Audit was highly critical of a situation which, because of the difficulties of control of Crown land licensees, allowed considerable numbers of licensees paying low licence fees to enjoy rents from illegal sub-lessees which should have accrued to public revenue. Up to now, 145 Crown land licences have been converted to short term tenancies and conversions continue as staff- ing permits. It is estimated that over 400 Crown land licences remain to be converted in the urban areas. The policy has been to convert to the existing approved rates, i. e. at present $65 per square metre and $130 per square metre respectively for open and covered areas. As many of the licensed areas were occupied by illegal buildings not covered by the former licence fees, recent conversions have resulted in very large increases in fees.

Future Policy

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Proposals are now under consideration for introducing

a limited tender system for short term tenancies. This would ensure that new tenancies are granted fairly and secure the maximum revenue for Government. It will also provide a useful basis for the assess- ment of rentals for continuing tenancies.

UMELCO Paper 473 "Excessive Rent. for Use of Crown.

Land under Short Term Tenancy" (Annexed)

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The following are the official comments on the three cases referred to in the UMELCO Paper 473 annexed:

A

POC 1315/77

The view of the Director of Lands and Survey is set out in full in paragraph 3 of the paper and this is the