ENG-1989 — Page 229

LAND, PUBLIC WORKS AND UTILITIES

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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 shared equally, after deduction of the average cost of land production, 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.

Public Works and Development

To cope with Hong Kong's future development, the government continues to invest heavily in capital works. In 1989–90, funds allocated for capital works amounted to $9,877 million, representing about 14 per cent of government's total approved expenditure for the period. About 58 per cent of the provision was for civil engineering, environmental protection and highways projects. About 35 per cent of the provision was for building items and eight per cent for waterworks. Of the total investment in capital works for 1989–90, 42 per cent was for projects in new towns and new urban development areas. In addition $2,955 million was allocated for acquisition of land for public works projects.

Forward Planning

Since the beginning of the 1970's Hong Kong has relied on its new town programmes for the greater part of its urban expansion, including the provision of land for industry. At present, eight new towns are in various stages of construction in the New Territories, resulting in a gradual decentralisation of population from the crowded urban areas. About 2.0 million people, or 35 per cent of the population, are now living in the new towns. By 1998, this figure is expected to increase to about 42 per cent.

In 1983, it was concluded after extensive strategic studies that the optimal areas for further expansion beyond the new towns would be on new reclamations in the harbour. It was also recognised that the port of Hong Kong, where many of the more centralised facilities had been redeveloped for other uses in the 1970's, would require further expansion in the Western Harbour.

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In 1986 and 1987 it became clear that three major problems needed further and urgent - attention:

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⚫ first, that both port and airport facilities were approaching saturation much faster

than expected in the earlier strategic studies;

• second, the higher environmental standards of the new towns showed up the poor environmental quality of large parts of the metropolitan areas; and,

third, the environmental quality and minimal provision of services in the rural areas had become a source of increasing dissatisfaction to its residents.

This gave rise to three studies: the Port and Airport Development Strategy study, the Metroplan study and the Rural Planning and Improvement Strategy study.

The Port and Airport Development Strategy study, which is concerned with the phased provision of new port, airport and related infrastructure facilities, started in March 1988. Work on this important study was brought to a conclusive stage in mid-1989 resulting, in July, in a submission to the Executive Council of three optional strategies. A final decision by the council was made in October in favour of a strategy that provides for the de- velopment of a replacement airport at Chek Lap Kok located on the northern coast of Lantau Island. The aim is to commission the first runway by early-1997. The strategy also