In response to media enquiries on the allegation against the Government of exerting pressure on the Urban Renewal Authority (URA) regarding its financial position, as well as enquiries on the purposes of URA and its directions in implementing urban renewal, a spokesman for the Development Bureau made the following comments today (March 31):
URA is a statutory body established under the Urban Renewal Authority Ordinance (URAO) to undertake urban renewal.
The Government's commitment to the financial arrangements of URA is reiterated in the Urban Renewal Strategy (URS) promulgated in 2011, namely, that URA will continue to be supported by the Government through
(a) the $10 billion capital injection already made;
(b) waiver of land premia for redevelopment sites;
(c) waiver of land premia for rehousing sites; and
(d) loans from the Government.
The long-term objective of a self-financing urban renewal programme will continue to be upheld as URA implements its urban renewal programme.
Based on the audited accounts of URA as at March 31, 2014, URA is financially sound with an accumulated surplus of approximately $13.9 billion and a net asset value of approximately $23.9 billion. Although a deficit of about $2.3 billion was recorded in 2013-14, URA successfully tendered a number of projects in mid to late 2014. As at December 31, 2014, the accumulated surplus of URA was approximately $14 billion (unaudited), reflecting an improved financial position. The allegation against the Government of exerting pressure on URA regarding its financial position is unfounded.
The URAO and the URS promulgated in February 2011 have clearly set out the purposes for which URA was established and its directions in implementing urban renewal.
Under the URAO, the purposes of URA are to improve the standard of housing and the built environment of Hong Kong by undertaking, encouraging, promoting and facilitating urban renewal; to promote the maintenance and improvement of individual buildings; and to preserve buildings of historical and other interests. Pursuant to the URAO, URA shall exercise due care and diligence in the handling of its finances.
The URS has set out that URA should adopt a "People First, District-based, Public Participatory" approach when carrying out urban renewal, and should balance the interests and needs of all sectors of the community. The 2011 URS has also stated that the long-term objective of a self-financing urban renewal programme will continue to be upheld as URA implements its urban renewal programme.
As a statutory organisation supported by public funds, URA has to exercise financial prudence in line with the URAO and the 2011 URS so as to meet public expectation.
Ends/Tuesday, March 31, 2015
Issued at HKT 23:26
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