ENG-2005 — Page 283

Land, Public Works and Utilities | 237

under the relevant ordinances. The ordinances provide for payment of compensation both for the value of the property resumed as at the date of acquisition and for business loss suffered. If agreement cannot be reached

agreement cannot be reached on the amount of compensation, either party can refer the claim to the Lands Tribunal for adjudication. As an alternative to statutory compensation, there is a system of ex gratia zonal compensation at pre-determined rates. It provides a simplified assessment procedure for agricultural land acquired in the New Territories, enabling the early release of compensation payments to the landowners to facilitate clearances.

A total of 25 914 square metres of private land, comprising 25 869 square metres of agricultural land and 45 square metres of building land, were acquired in 2005 to provide land primarily for road projects, drainage projects and a village expansion project at Wo Yi Hop in Tsuen Wan District where $423 million was paid in compensation.

The Lands Department was also involved in the resumption of land for implementation of urban renewal projects undertaken by the Urban Renewal Authority and the Hong Kong Housing Society. During the year, compensation totalling $370.22 million was paid to owners of 152 resumed properties and occupiers affected by 17 urban renewal projects in Hung Hom, Tai Kok Tsui, Sham Shui Po, Sai Ying Pun, Wan Chai, Shau Kei Wan, Tsim Sha Tsui and Tsuen Wan.

The Lands Department also continued to resume and clear land for the Kowloon- Canton Railway Corporation for implementation of its railway projects. By year-end, $20 million had been paid in compensation for land resumed for the West Rail project and $12 million for the East Rail Extension project which includes the Sheung Shui to Lok Ma Chau spur line and the Hung Hom to Tsim Sha Tsui line.

Land Disposal

Land in Hong Kong is leased or otherwise held from the Government of the Hong Kong Special Administrative Region. New leases of land are usually granted for a term of 50 years from the date of grant at a premium and subject to the payment from the date of grant of an annual rent equivalent to 3 per cent of the rateable value of the property at that date, adjusted in step with any changes in the rateable value thereafter.

While government land is usually sold by public auction, sale by public tender is also used in certain circumstances, such as for petrol filling station sites or where the Government wishes to examine in advance detailed proposals, as in the tender of the former Marine Police Station in Tsim Sha Tsui for commercial development which involved heritage preservation.

In appropriate cases, land may be made available by private treaty grant. In these direct grant cases, the premium charged varies from nominal (as in the case of non- profit-making schools) to full market value (as in the case of public utility companies).

In October 2003, the Government released a statement on the implementation and consolidation of housing policy. This included the decision to resume the sale of land (suspended in November 2002) through the operation of the Application List