ENG-1987 — Page 209

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LAND, PUBLIC WORKS AND UTILITIES

Planning Unit of Lands and Works Branch in 1987 to undertake the preparation of a planning statement for the metropolitan areas. The harbour reclamation proposals at Hung Hom, Central and Wan Chai, west Kowloon and Green Island will provide the opportunity for replanning of the metropolitan areas to relieve congestion and redress the shortfall in community facilities. Planning and engineering studies for these proposals are underway.

Urban redevelopment and improvement are also the objectives of the Land Development Corporation, to be set up in early 1988. The corporation will undertake and promote comprehensive redevelopment of part of the older urban areas. It has powers to acquire and develop properties, either on its own or as a joint-venture with private developers.

To cope with Hong Kong's future development, the government continues to invest heavily in capital works. In 1987-8, funds allocated for capital works amounted to $5,800 million, about 13 per cent of the total approved expenditure for the period. About 50 per cent of the provision was for civil engineering, environmental protection and highways projects. About 30 per cent of the provision was for building items and 11 per cent for waterworks. In addition, $1,200 million was allocated for acquisition of land for the public works projects involved.

Discussion also continued between government and relevant professional institutions on the statutory registration of engineers, architects, surveyors and planners.

Land Administration

The Land Administration Office of the Buildings and Lands Department co-ordinates all aspects of land administration throughout the territory. The 14 district lands offices: three on Hong Kong Island, two in Kowloon and nine in the New Territories, are responsible for most aspects of land administration and land disposal, while the headquarters formulate general policies and advise on more complex matters.

Land Supply

All land in Hong Kong is held by the government which sells or grants leasehold interests. Land grants and leases throughout the territory are now made in accordance with the terms set out in Annex III to the Joint Declaration. The total amount of new land to be granted is limited to 50 hectares a year (excluding land to be granted to the Hong Kong Housing Authority for public rental housing), although the Land Commission may increase this limit. Premium income obtained from land transactions is, after reduction of the average cost of land production, shared equally between the Hong Kong Government and the future Hong Kong Special Administrative Region Government.

Normal land grants and leases are now made for terms expiring not later than June 30, 2047. They are made at a premium and nominal rental until June 30, 1997, after which date an annual rent equivalent to three per cent of the property's rateable value will apply. With the enactment of the New Territories Leases (Extension) Ordinance in 1987, leases expiring in or before 1997, with the exception of short-term tenancies and leases for special purposes were extended to 2047 without payment of an additional premium. An annual rent equivalent to three per cent of rateable value will be charged in the same way as for the grant of new leases.

The first priority with regard to land supply is to make available sufficient land for the government's development programmes, including the public housing programme. Land for the Hong Kong Housing Authority's public rental estates is provided free by the government, as is land for the residential element of the authority's Home Ownership