Following is a question by the Hon Choy So-yuk and a written reply by the Secretary for Housing, Planning and Lands, Mr Michael Suen, in the Legislative Council today (Nov 17):
Question:
Regarding the disposal of flats built under the Hunghom Peninsula Private Sector Participation Scheme and the Kingsford Terrace Private Sector Participation Scheme, will the Government inform this Council:
(a) in deciding to sell the flats at Hunghom Peninsula, how it assessed the possible impact of that decision on environmental protection;
(b) in putting up the flats at Kingsford Terrace for sale in the future, whether it will impose requirements such as prohibiting the demolition or reconstruction of the flats;
(c) if the authorities will impose such requirements but did not do so when selling the flats at Hunghom Peninsula, whether the Secretary for Housing, Planning and Lands, being the principal official for this policy area, will shoulder the responsibility for such an omission; if he will, of the details; if not, the reasons for that; and
(d) if the authorities will not impose such requirements, how they can ensure that the flats at Kingsford Terrace will not be demolished or reconstructed after they have been sold?
Reply:
Madam President,
Under the Private Sector Participation Scheme (PSPS), private developers were invited to tender for housing sites on which they were required to build flats conforming to certain specifications stipulated by the Government. Like other Government land sales, the land title of a PSPS site was vested in the developer. The developer held legal title to the land lot and owned the entire development.
My reply to the four-part question is as follows:
(a) In considering options to deal with Hunghom Peninsula, our main concerns are to maintain the consistency and integrity of the Government's housing policy and minimise any adverse impact on the then unstable property market. After thorough examination of various options and associated policy, legal and contractual implications, the Government reached agreement with the developer through mediation, allowing the developer to modify the lease to remove the PSPS-related terms and conditions after payment of the agreed premium so that the developer can sell his property in the open market. The lease modification does not involve environmental considerations.
(b) Kingsford Terrace is also a PSPS project. Similar to Hunghom Peninsula, the developer held both the legal title to the land lot and the development. The Government had therefore adopted the same approach in dealing with Kingsford Terrace, i.e. allowing the developer to dispose of the property subject to the payment of a lease modification premium to be agreed through negotiation. Since the Government and the developer of Kingsford Terrace were unable to reach an agreement on the amount of modification premium, the Housing Authority purchased in August 2004 the domestic flats of Kingsford Terrace at the guaranteed price in accordance with the contractual provisions set out in the Conditions of Sale. At present, the site of Kingsford Terrace is jointly owned by the Housing Authority and the developer. The Housing Authority is now considering options to dispose of the residential flats. The Government must protect the right to private property in accordance with the law. Having regard to legal and other considerations, it is inappropriate to impose arbitrarily additional restrictions on demolition or redevelopment on sold land.
(c) Some sectors of the community oppose any proposed demolition of Hunghom Peninsula for redevelopment. The Government is concerned and has been closely monitoring the situation. We cannot disregard the fact that the legal title to Hunghom Peninsula is held by the developer. It should be noted that land owners have the right to formulate options to develop their own land within the parameters of planning constraints and all applicable legislation. The Government does not have the liberty to impose any additional restrictions on demolition or redevelopment. Thus, there is no question of omission in not including such restriction at the time of lease modification.
(d) The residential flats of Kingsford Terrace are now owned by the Housing Authority whereas the commercial and parking facilities are owned by the original developer. The Housing Authority is examining possible options to make the best use of the residential flats.
Ends/Wednesday, November 17, 2004
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