ENG-1987 — Page 215

LAND, PUBLIC WORKS AND UTILITIES

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Scheme. Land for the rental estates constructed by the Hong Kong Housing Society, a non-profit-making body with aims similar to those of the Housing Authority, is pro- vided on concessionary terms. Land is also granted by private treaty, at nil or nominal premium, to non-profit-making charitable institutions which operate schools, hospitals, and social welfare and other community services in accordance with the government's policy objectives.

Most land available for private sector commercial, industrial or residential development is sold by public auction or tender. The formulation of overall targets for the production of land is carried out under the auspices of the Land and Building Advisory Committee. Regular auctions are held by the government and a provisional land sales forecast is published every six months. In the New Territories, however, where much of the land required for development has to be resumed, a high proportion of land is disposed of by tender. Since 1984, it has been possible for the holders of Land Exchange Entitlements to bid in auction and tender sales of New Territories sites by offering to surrender these entitlements in lieu of cash.

Leases for certain special purposes, which have particular site requirements or other factors which would make public auction inappropriate, are also offered for sale by public tender. Such special purposes include capital-intensive industries which introduce new technology and cannot be adequately housed in more conventional multi-storey flatted factory buildings. Such sales are initiated only in response to formal applications and, in certain circumstances, may be concluded by private treaty.

Land Acquisition

When private property needed for carrying out public works projects cannot be acquired by negotiation, the use of compulsory powers becomes necessary. Property may then be acquired under either the Crown Lands Resumption Ordinance, the Land Acquisition (Possessory Title) Ordinance, the Mass Transit Railway (Land Resumption and Related Provisions) Ordinance, or through the Roads (Works, Use and Compensation) Ordinance. These ordinances provide for the payment of compensation based on the value of the affected properties at the date of reversion. If agreement cannot be reached on the amount payable, either party can refer the claim for compensation to the Lands Tribunal for determination.

For development in the New Territories, a system of ex-gratia payments applies with enhanced rates paid for land situated within the new town development areas and progressively reduced rates paid for land situated outside these areas. In the case of building land, an ex-gratia payment is offered in addition to the statutory compensation.

The need for land for development has continued to grow. During 1987, about one million square metres of private land was acquired in the New Territories to carry out various public works projects and the total land acquisition and clearance cost involved was about $950 million. These projects included the phased development of Sha Tin, Tai Po, Fanling and Junk Bay new towns, New Territories Circular Road Improvements section from Au Tau to Fan Kam Road, Route 5 between Tsuen Wan and Sha Tin and Vehicular Border Link at Lok Ma Chau Stage II.

In the urban areas of Hong Kong Island and Kowloon, about $9 million was paid in compensation for land and buildings acquired during the year for public works projects, either under compulsory powers or by agreement. These projects included Ap Lei Chau North Reclamation, the Folk Museum at Chai Wan, sewage screening plant at Shau Kei Wan and Tate's Cairn Tunnel.