TNAG-1319-FCO40-1723-Future-of-Hong-Kong-land-leases-1984 — Page 55

Background Paper

Land and Public Works in Hong Kong

Introduction

Land is one of the most important and

valuable commodities in Hong Kong, being the raw

material upon which all development

public or

private, residential, commercial, industrial,

. governmental or institutional - must take place.

Since all land in Hong Kong is held by the government,

its disposal by lease for private development is

also an important element of government revenue.

For the financial year 1984-85, the revenue from

land transactions is estimated at HK$4,230 million,

about 12.5% of total revenue : this high figure

includes an extraordinary final payment of

HK$1,900 million.

2.

The development of land by way of public

works projects is normally the government's largest

single item of expenditure, covering the formation

and reclamation of land; its servicing by roads,

drains, sewers and the provision of water supplies;

the construction of highways, bridges and tunnels;

port and airport works; public buildings; and the

disposal of liquid and solid wastes. For the financial

year 1984-85, the estimated expenditure on capital

works is HK$7,900 million, about 21% of the government's

total expenditure.