************************************************************
Following is a question by the Hon WONG Kwok-kin and a written reply by the Secretary for Transport and Housing, Ms Eva CHENG, in the Legislative Council today (Jan 27):
Question:
Some residents of public rental housing (PRH) have relayed to me that The Link Management Limited (The Link) has let out some of the commercial premises in the shopping arcades in PRH estates under its management to private residential care homes for the elderly (RCHEs), disregarding opposition from PRH residents and owners' corporations. Those residents have pointed out that the arrangement not only added to the burden on the public facilities of the estates, but also deprived the residents of their right in choosing retail and catering services in such shopping arcades. In this connection, will the Government inform this Council:
(a) among the RCHEs involved in the applications for RCHE licences which have been approved and are being vetted by the Social Welfare Department (SWD) at present, of the number of those located in the shopping arcades of PRH estates under the management of The Link; in vetting such applications, whether SWD has taken into consideration the functions, facilities and environment of the shopping arcades in PRH estates in determining if the commercial premises in the shopping arcades are suitable for letting out for the purpose of operating RCHEs, and whether it has listened to the views of the residents in the vicinity; if it has, of the details and the mechanism for consideration; if not, the reasons for that;
(b) whether the authorities have assessed the pressure imposed and impact on the recreational, medical, rehabilitative and other community facilities in the PRH estates brought by such RCHEs after they have learnt that The Link has let out the commercial premises in the shopping arcades under its management for operating RCHEs; if they have, of the assessment results, and whether they will provide additional community facilities in response to the establishment of such RCHEs; if they will not, of the reasons for that; and
(c) of the existing monitoring mechanism the Hong Kong Housing Authority (HA) has put in place to monitor The Link in securing the provision of amenities ancillary as HA thinks ˇ§fitˇ¨ for PRH residents, so that section 4(1) of the Housing Ordinance (Cap. 283) will not be contravened; given that some PRH residents have pointed out that The Link has altered the original letting purposes of some of the retail facilities in PRH estates, resulting in the failure of the services to meet the needs of the residents, whether HA will assist the PRH residents in and discuss with The Link resuming the original letting purposes of such commercial premises in the shopping arcades in PRH estates?
Reply:
President,
In divesting its facilities to The Link Real Estate Investment Trust (The Link REIT), the Hong Kong Housing Authority (HA) has, through stipulations in land leases, deeds of mutual covenant and other covenants, ensured that the divested facilities will continue to be used for commercial and car parking purposes, and change of use cannot be made without authorisation. The Link REIT, like any private entity, may determine the trades for its shopping centres and commercial premises as well as revise the trade mix and facility layout according to circumstances. The Government and the HA cannot and will not intervene in The Link REIT's business strategies, mode of operation and trade mix.
Having incorporated the input of the Labour and Welfare Bureau, my reply to the three-part question is as follows:
(a) Among the applications for residential care homes for the elderly (RCHEs) licences approved or being vetted by the Social Welfare Department (SWD), a total of 27 are located in facilities under the management of The Link REIT. To ensure that the premises are suitable for use as RCHEs, the SWD's Licensing Office of the Residential Care Homes for the Elderly will assess the location, means of ingress and egress, design, structure, type of building, fire services equipment, and sanitary condition, etc. of the premises in accordance with the requirements set out in the Residential Care Homes (Elderly Persons) Ordinance (Chapter 459), its subsidiary legislation and the Code of Practice for Residential Care Homes (Elderly Persons). Applications will not be approved if they fail to meet the above mentioned requirements.
(b) RCHEs and retail shops are commercial facilities belonging to different trades which meet the commercial use requirements as stipulated in the land lease. In addition, the shopping centres and car parking facilities divested to The Link REIT by the HA are regulated by the Buildings Ordinance (Chapter 123). For any building project involving building structure or material change of use (including change of use to RCHE purpose), approval has to be obtained from the Housing Department's Independent Checking Unit (ICU) before the project can be carried out. The ICU adopts the same enforcement arrangements as the Buildings Department. It will consult the Fire Services Department, Lands Department and Planning Department when processing an application. These departments will make an assessment on the areas under their purview to ensure that the fire services equipment is up to standard, and the land lease conditions and statutory planning requirements are complied with.
(c) In its judgment made in July 2005, the Court of Final Appeal (CFA) has stated clearly that to secure the provision of retail and car parking facilities under the Housing Ordinance (Chapter 283) does not mean that the HA needs itself to be the direct provider. The HA secures the provision of the facilities so long as the facilities are available, although they are provided not by the HA but by The Link REIT, a third party over whom the HA has no control. In reaching its conclusions, the CFA has also noted that The Link REIT may make changes to the mode of operation of its facilities, including the trade mix of the tenants.
As an organisation operating on commercial principles, The Link REIT, just like any private entity, would take suitable action to respond to the economic and market conditions in order to maintain its viability in the market. Given the fact that The Link REIT's shopping centres are located in public housing estates and its clientele are mainly public housing tenants, facilities under the management of The Link REIT must cater for the tenants' needs and affordability, which in turn provide them with the services they need.
Ends/Wednesday, January 27, 2010
Issued at HKT 12:26
NNNN
