LandsD responds to media enquiries on compensation system for resumption of private land in New Territories

In response to enquiries from the media about the current land compensation system for resumption of private land in the New Territories, a spokesman for the Lands Department made the following remarks today (July 22):

In handling land compensation matters upon resumption of private land for public purposes, the Administration has all along followed the relevant Ordinances in processing and assessing statutory claims from owners affected. The Administration also provides an alternative to the statutory compensation mechanism by implementing an ex-gratia zonal compensation system to deal with land compensation matters. Covering four compensation zones (i.e. Zone A, Zone B, Zone C and Zone D), this system was approved by the Finance Committee (FC) of the Legislative Council in December 1985 and subsequently reviewed and improved in 1996 by the FC. 

The designation of the four compensation zones and assessment of the applicable ex-gratia compensation rates are based on established mechanism. The designation of the compensation zone applicable to the affected land is based on such factors as whether the affected land falls within New Town Development Areas, whether it is affected by essential projects with territory-wide significance, and whether there is any known potential for urban development etc. Generally speaking, if the affected land is within the New Town Development Areas, it will be designated as Compensation Zone A according to the existing mechanism. When making a recommendation on the zonal designation for the affected private land, the Lands Department will have regard to all affected land within the boundary of the concerned public works project. The recommendation is not based on the locations of individual lots.

The compensation rates applicable to the respective compensation zones are expressed in terms of different percentages of the basic rates. The Lands Department conducts independent review of the basic rates on a half-yearly basis to reflect the changes of market values. The Development Bureau has no role to play in the reviewing process.

Ends/Monday, July 22, 2013
Issued at HKT 23:53