ENG-1970 — Page 142

LAND AND HOUSING

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of the site was $10 millions or more, providing for payment by annual instalments over 10 years free of interest; during the year this concession was amended to provide for payment by instalments with 10 per cent of the realised price being payable within one month of the auction, the balance being payable by 10 equal annual instal- ments bearing interest at 10 per cent per annum. Land for special housing projects, for public utilities, schools, clinics and approved charitable purposes is usually granted by private treaty. The premium charged in such cases varies from nothing for non-profit-making schools up to the full market value and payment by instalments for public utilities.

In order to assist owners of industrial lots where the premium is payable by instalments, a concession exists which, subject to certain conditions, permits the subletting of parts of the building without having to pay the outstanding balance of premium. Previously the balance of premium outstanding became payable in the event of any subletting.

In recent years, groups of 75-year non-renewable Crown leases granted chiefly in Kowloon, have been expiring. Terms and condi- tions for new leases have already been agreed in a large number of

cases.

On re-grant, the boundaries of the lots are adjusted to conform with street improvement lines etc, but the leases will not be re- granted if the land is needed for a public purpose. In these cases the Government pays ex-gratia compensation for the buildings on the lot.

A concession in respect of non-renewable leases enables lessees who do not wish to pay the re-grant premium and redevelop to hold over for a period up to five years from 1968 at an annual rent equiv- alent to the net income arising from the property. This concession is only applicable to property which in the opinion of the Director of Public Works is under-developed, and lessees of fully developed post-war property are not eligible.

The number of 75-year renewable leases falling due for renewal is increasing and a Consolidated Statement of the terms and condi- tions for renewal of these leases has been issued. The statement divides lots into two groups: the first group being lots in the New