3
9.
In stage I of the market clearance, of the 28 shop and 14 stall operators for whom special arrangements were made, only 13 shop and 8 stall-operators tendered for and obtained premises at the Lek Yuen Estate and of these 9 shop and 4 stall operators assigned their tenancies at a profit. The Housing Authority naturally views this trading of its premises (at a loss to the Authority) with concern. The Secretary for the New Territories nevertheless considers that the compensation arrangements for this clearance must be no less favourable than those offered in 1976. As it is not possible to allocate shops on a one-for-one basis, ex-gratia cash compensation, over and above that normally awarded under Housing Department policy, will be required to be paid. The Secretary for the New Territories is currently considering the level of cash compensation necessary and will make recommendations to the Finance Committee of the Legislative Council as soon as possible.
10.
The shopkeepers to be cleared have continually demanded the same treatment as their 1976 counterparts i.e. to be allocated shops on a one-for-one basis. The proposed ex-gratia cash compensation arrangements will go some way towards meeting their alleged grievances but it is likely that the shopkeepers may attempt to seek public sympathy, particularly after what they consider to have been the success of the publicity given to the closure of the Lutheran Primary School in Sha Tin Market in June 1978. The Secretary for the New Territories aims to overcome adverse publicity :
(a) by making the compensation arrange-
ments sufficient so as to offset the shortage of reserved shop spaces; and
(b) by explaining that Government has
treated the clearance of Sha Tin Market as a special case and that special compensation arrangements will enable the shopkeepers to compete in the open tender for the remaining shops and shop stalls in Wo Che should they wish to continue trading in Sha Tin.
District Office, Sha Tin
Date: 26th September 1978
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