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LCQ12:Heung Yee Kuk new premises
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    Following is a question by the Hon Audrey Eu and a written reply by the Secretary for Home Affairs, Dr Patrick Ho, in the Legislative Council today (December 7):

Question:

     On the 7th of last month, the Government announced that it had decided to grant Heung Yee Kuk ("HYK") a piece of land in Shatin, the area of which is about 4,240 square metres, by way of a Private Treaty Grant ("PTG") at a nominal premium of $1,000 for HYK to construct its new premises.  In this connection, will the Government inform this Council:

(a) whether it had considered the financial position of HYK before making the decision to grant the land; if it had, of the details; if not, the reasons for that;

(b) whether HYK has to return the existing site of its premises to the Government upon relocation to the new premises; if so, of the details; if not, the reasons for that; and

(c) of the details of the cases in which the Lands Department granted land to non-profit-making organisations by way of PTG at nominal premium over the past five years, including the names of the grantees, the sizes and locations of the lots, the premiums, the land use and the years in which the leases will expire?

Reply:

Madam President,

(a) On 1 November this year, the Chief Executive in Council granted Heung Yee Kuk ("HYK") a piece of government land designated as Sha Tin Town Lot (STTL) No.547 by a Private Treaty Grant ("PTG") at a nominal premium for the construction of a new HYK building to facilitate HYKˇ¦s efficient performance of its statutory functions.

     The land grant proposal and decision were made according to prevailing government policies.  The considerations that had been taken into account included the issue of whether the proposal was in line with government policies or whether it would be conducive to the implementation of established policy objectives, its anticipated benefits or effects to the economy and other aspects, and the applicant's ability to implement the land grant proposal.

     In considering HYK's land grant application and its financial position, the Government has taken into account the following factors:

(i) According to information submitted with HYK's land grant application, the construction and development costs of its new building are estimated to be $83 million and HYK will be responsible for raising the required funds.  As such, HYK will sell its existing premises and launch fund-raising activities in Hong Kong and overseas to achieve the target; and

(ii) HYK is a statutory and non-profit-making organisation, discharging the statutory functions stipulated in the Heung Yee Kuk Ordinance.  It therefore receives a government subvention of $1.95 million per annum.  HYK has undertaken that it would not seek additional subvention from the Government for any increase in costs arising from the operation of the new building.

(b) As the existing premises of HYK in Kowloon Tong is a private property purchased by HYK with its own funds, the Government has no right to take back the site for the existing premises of HYK.  To finance the construction and development costs of the new premises, HYK has to sell the existing premises and use the sale proceeds for the development of the new premises.

(c) For the period from December 2000 to November 2005, details of land grants*  by the Lands Department by way of Private Treaty at nominal premium (of $1,000) are set out at Annex.

(* Land grants to the Hong Kong Housing Authority and Kowloon-Canton Railway Corporation are not included.)

Ends/Wednesday, December 7, 2005
Issued at HKT 14:41

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