ENG-1988 — Page 234

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LAND, PUBLIC WORKS AND UTILITIES

Most government land available for private sector commercial, industrial or residen- tial development is sold by public auction or tender. 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 tenders restricted to holders of Land Exchange Entitlements (Letter A/B).

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 direct 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.

Where resumption of land in the New Territories arises, 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. For resumption of old schedule lots in the Urban Area, a system of ex-gratia payments also applies.

The need for development has continued to grow. During 1988, 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 costs involved was about $1,000 million. These projects included the southern access road to Nim Wan Controlled Tip in Tuen Mun, the Stage I works of Ting Kok Road Upgrading in Tai Po and the Tate's Cairn Tunnel Approaches in Sha Tin.

In the urban areas of Hong Kong Island and Kowloon, about $977 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 the Ap Lei Chau North Reclamation, Tate's Cairn Tunnel and Approaches in Lung Cheung Road/Hammer Hill Road Grade Separated Interchange, Ma Tau Wai Road flyover, and the Kowloon Walled City Clearance.

An amendment to the Roads (Works, Use and Compensation) Ordinance has recently be made to facilitate work on the heavy private streets resumption programme.

Land Office

The Land Registration Ordinance provides for the registration in the Land Office, a Division of the Registrar General's Department, of all instruments affecting land. Registra- tion is effected by means of a memorial containing the essential particulars of the instrument which are then placed on a register card relating to the particular piece of land.