TNAG-0857-FCO40-1067-Legislation-for-piers-and-harbours-in-Hong-Kong-1979 — Page 27

RESTRICTED

Annex C

For discussion

on 12th July 1977

XCR(77)192 Copy No

MEMORANDUM FOR EXECUTIVE COUNCIL

Existing Policy

PRIVATE TREATY GRANTS OF LAND TO PUBLIC UTILITY COMPANIES

Under existing policy, sites required by public utility com- panies for the purposes of the utility may be granted by private treaty. The aim of the policy is to guarantee the availability of the land such as companies need to ensure the provision of their services.

2

Generally, companies may benefit from the private treaty grant policy only if they undertake not to dispose of any land used for the purposes of the utility, whether acquired by private treaty grant or on the open market, without the permission of the Governor. Furthermore, although development is restricted to the purposes of the utility, full market value on the prevailing local use must be paid for land acquired under the policy, and subsequent assignment, mort- gaging and sub-letting for profit are prohibited. These restrictions are intended to ensure that:

14.

(a) application is made only for land actually required

for public utility purposes, and that, wherever possible, public utility companies are encouraged to accept less valuable sites;

(b)

(c)

land acquired under the private treaty grant policy is actually used for public utility purposes; and

public utility companies do not take advantage of the Government's policy of making private treaty grants to become involved in speculative land and property dealings.

Reasons for Revising Policy

3

A recent review of the public utility private treaty grant policy has led to the conclusion that, although it is still necessary to continue private treaty grants of land to ensure that appropriate sites are made available for the undertakings, some revision of the terms and restrictions relating to development premium and assignment would be in the public interest for the following reasons: