Legislative Council Question 5 : "Logistics back-up site" by the Hon Cheung Hok-ming and a reply by the Secretary for Housing, Planning and Lands, Mr Michael Suen, in the Legislative Council

Following is a question by the Hon Cheung Hok-ming and a reply by the Secretary for Housing, Planning and Lands, Mr Michael Suen, in the Legislative Council today (May 17):

Question:

Many land lots in northwest New Territories are being used as logistics back-up sites in recent years. On the other hand, some people of the logistics industry have complained to me that instead of injecting resources to assist in the development of the logistics industry, the Government has throttled it by regulating it through town planning. In this connection, will the Government inform this Council:

(a) of the names and locations of the supporting infrastructures (such as roads) built or improved by the authorities as well as the costs involved in each of the past four years;

(b) of the locations and sizes of the land lots designated as "Open Storage" zones or areas in northwest New Territories in each of the past four years; the number of applications received by the authorities for changing the land uses of the land lots in northwest New Territories into "Open Storage", the sizes of the land lots involved as well as the reasons for the authorities' approving or rejecting these applications; and

(c) whether it has assessed the impact of restricting open storage operations by means of planning on the economy and employment situation of Hong Kong; if so, of the assessment results; whether the authorities will consider re-formulating a policy on comprehensive land use planning for the land in northwest New Territories, so as to tie in with the commissioning of the Hong Kong-Shenzhen Western Corridor, thereby promoting the long-term development of the logistics industry in Hong Kong; if so, whether the policy concerned will include a package of proposals to achieve a balance between the operations of the logistics back-up base and the impact of such operations on the environment?

Reply:

Madam President,

My reply to the three-part question is as follows:

(a) A comprehensive transport network is one of the essential elements for the development of the logistics industry. The Government is continuously improving the transport network. For instance, to enhance the cross-boundary flows of goods, the new bridge connecting Lok Ma Chau and Huanggang was commissioned last year, and the Hong Kong-Shenzhen Western Corridor is expected to be commissioned in the first half of next year. In addition, the Stonecutters Bridge will be completed in the year following the next. In the past four financial years, the Government spent a total public expenditure of over 100 billion dollars on infrastructure.

(b) The Town Planning Board (the Board) recognises the industry's need for land for open storage and port back-up uses. The Board drew up a set of planning guidelines for "Application for Open Storage and Port Back-Up Uses under the Town Planning Ordinance" (the Guidelines) in as early as 1994. The Guidelines have been reviewed and revised several times over the years. Currently, the areas suitable for open storage and port back-up uses, i.e. Category 1 areas, amount to 846 hectares in the rural New Territories as a whole. Given their proximity to the boundary, the geographical location of these areas facilitates the operation of the logistics industry as well as cross-boundary economic activities.

At present, the Category 1 areas in the northwest New Territories include 257 hectares of land zoned for "Open Storage". In general, open storage and port back-up activities in these areas are permitted as of right within this land use zone and prior planning permission is not required. For the remaining areas with other land use zonings, permission for logistics-related uses may be granted through planning application.

Apart from Category 1 areas, sites are also designated as Category 2 areas by the Board to allow greater flexibility to meet the needs of the logistics industry. Category 2 areas include areas within or close to clusters of open storage and port back-up sites which are regarded as "existing uses" or subject of previous approvals, or areas without development programme for the time being. Applications for new open storage and port back-up uses or extension of existing temporary open storage and port back-up uses in Category 2 areas, subject to a maximum period of three years, will be considered. There are a total of 260 hectares of Category 2 areas in the northwest New Territories.

According to our record, two applications for rezoning of land lots in northwest New Territories to "Open Storage", involving about two hectares of land, were received by the Board in the past four years. The two applications were rejected by the Board in 2003 and 2004 respectively, mainly on grounds that the proposed rezonings were considered as incompatible with the surroundings, and that there was already sufficient land in the vicinity for temporary open storage use by the industry.

(c) As one of the pillars of Hong Kong's economy, the logistic industry accounts for 5.4% of our Gross Domestic Product and offers 198 400 jobs (which represents 6% of the labour force). The Government and the Board are fully aware of the significance of their incentives and support to the industry. The Board reviews from time to time the demand for sites for open storage and port back-up uses to cater for the needs of the industry and the economic development of Hong Kong as a whole. As to whether more sites will be designated for open storage and port back-up uses in the northwest New Territories, the Planning Department will, in the light of the demand for such land use, submit its land use planning proposals for the Board's approval having regard to such factors as the opportunities to be brought about by the commissioning of the Hong Kong-Shenzhen Western Corridor, whether there would be any adverse drainage, traffic, visual, landscape and environmental impacts caused to the surrounding areas by its proposals, and views of the residents nearby. The Government will continue to create favourable conditions for the development of the logistics industry.

Ends/Wednesday, May 17, 2006
Issued at HKT 13:11

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