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LCQ19: Redevelopment of Tai Hang Sai Estate
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     Following is a question by the Hon Frederick Fung and a reply by the Acting Secretary for Transport and Housing, Mr Yau Shing-mu, in the Legislative Council today (November 25):

Question:

     The Chief Executive mentioned in the 2015 Policy Address that the Government must actively explore ways to increase the supply of subsidised sale flats through a multi-pronged approach by engaging public or non-profit-making organisations including the Hong Kong Housing Authority (HA), the Hong Kong Housing Society (HKHS), the Urban Renewal Authority (URA) and the Hong Kong Settlers Housing Corporation Limited (HKSHCL), in order that, by so doing, more property choices and home ownership opportunities will be provided for low and middle-income families. However, so far there has been no progress in the redevelopment of Tai Hang Sai (THS) Estate, the only private low-cost housing estate owned and managed by HKSHCL. In this connection, will the Government inform this Council:

(1) of the latest progress of the authorities' work in exploring ways to increase the supply of subsidised sale flats through HKSHCL; the details of the discussions between the authorities and HKSHCL on the matter since the delivery of the aforesaid Policy Address; whether HKSHCL has put forward any concrete proposal for redeveloping THS Estate; if HKSHCL has, of the details; whether the authorities have offered any suggestions and assistance in respect of the relevant proposal and the rehousing of the residents of THS Estate; if they have not, of the reasons for that;

(2) as there is still no noticeable progress in the redevelopment of THS Estate, whether the authorities have assessed if the statement mentioned in the Policy Address regarding increasing the supply of subsidised sale flats through HKSHCL is merely empty talk; if they have assessed and the outcome is in the negative, of the specific timetable for taking forward such work; and

(3) whether the authorities will, on the basis of the consideration of making optimum use of the precious lands in the urban areas, step in proactively in the redevelopment of THS Estate, including (i) formulating different redevelopment approaches and plans, (ii) recovering the site of THS Estate by invoking the relevant land lease conditions, (iii) handing the site in question to HA, HKHS or URA for comprehensive redevelopment, and (iv) rehousing the residents of THS Estate by following the practices adopted by HA for rehousing residents affected by public housing redevelopment; if they will not, of the reasons for that?

Reply:

President,

     With inputs from the Development Bureau, the Lands Department and the Planning Department, my consolidated reply to the various parts of the question raised by the Hon Frederick Fung is as follows.

     The Chief Executive stated in the 2015 Policy Address that as there was a marked increase in demand from low to middle-income families for Home Ownership Scheme (HOS) flats or other subsidised sale flats, the Government would actively explore ways to increase the supply of subsidised sale flats through a multi-pronged approach by engaging public or non-profit-making organisations including the Hong Kong Housing Authority (HA), the Hong Kong Housing Society (HKHS), Urban Renewal Authority (URA) and the Hong Kong Settlers Housing Corporation Limited (HKSHCL). This would provide more choices and more home ownership opportunities for low to middle-income families.

     In respect of HKSHCL, the Government granted a parcel of land at a concessionary rate to HKSHCL in 1961 for the development of Tai Hang Sai (THS) Estate and stipulated in the land lease that HKSHCL should, on the land granted, provide at least 1 600 flats for letting to persons of small means. THS Estate is a private rental housing estate and is constructed, let and managed by HKSHCL as the lessee of the lot (i.e. N.K.I.L. 4 479). It is neither owned nor managed by the Government or HA. The redevelopment arrangements of THS Estate are also determined by HKSHCL. Just like other private property owners, as long as the redevelopment complies with the legislation, including the Town Planning Ordinance (Cap. 131), the Buildings Ordinance (Cap. 123), etc., and relevant lease conditions, HKSHCL can decide on its own as to whether, how and when to redevelop THS Estate.

     As stated in the reply to the written question raised by the Hon Frederick Fung at the Legislative Council meeting on April 29, 2015, HKSHCL had sought the Government's views on its ideas to redevelop THS Estate, including whether its ideas complied with the planning requirements and lease conditions of the lot concerned.

     The Government understands that all along HKSHCL wishes to redevelop THS Estate on its own and is still considering various feasible options. However, HKSHCL has yet to submit its concrete plan or application for redevelopment. After HKSHCL formulates a concrete proposal and submits applications to the Government, the Government will consider matters relating to compliance with planning requirements and modification of lease conditions of the lot concerned according to applicable policies. As there is no information indicating that HKSHCL is in breach of relevant lease conditions, the Government has no grounds nor intention to re-enter the land concerned.

     As we have pointed out in our reply to the written question by Hon Frederick Fung in April 2015, in examining various redevelopment proposals, HKSHCL, as the grantee and redeveloper, has to continue to cater for the housing needs of the residents in THS Estate and to work out proper rehousing arrangements. According to HA's prevailing policy, HA will not rehouse residents affected by HKSHCL's redevelopment exercise on behalf of the corporation. At the moment, the number of people awaiting allocation of HA's public rental housing (PRH) flats is large and is continuously increasing, and demand for HOS flats is also keen. As THS Estate is not a public housing estate under HA and its redevelopment programme is not under HA, it would be unfair to PRH and HOS applicants if HA is required to use its public housing resources to rehouse the residents of THS Estate.

Ends/Wednesday, November 25, 2015
Issued at HKT 12:08

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