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1. Hui snubs Legco over West Kowloon plans

1. Hui snubs Legco over West Kowloon plans
AndreaChiu,LeslieKwoh andMichaelNg, The Standard 7 January 2006

Chief Secretary Rafael Hui has rejected recommendations by a Legislative Council subcommittee on the West Kowloon cultural district project, saying they "deviated substantially" from the government's original concept.

In an official statement Friday, Hui dismissed the concerns raised in the subcommittee's 120-page report, insisting that "the new development parameters and conditions proposed in October last year had, in substance, responded to the concerns of the public."

This came in response to the previously leaked report, also released Friday, which recommended the government fundamentally rethink the process to ensure it is accountable and transparent and doesn't leave developers with control over creating the cultural facilities.

Hui called the subcommittee's approach "conservative," rejecting the suggestion to adopt traditional land sale procedures for the project and then use public funds for the building of cultural facilities.

Such a proposal, he argued, "would in effect mean ... going back to the old way of using public funds to meet expenses and making the government bear all financial risks involved."

The government's plan presented last October specified that the successful bidder for the 40-hectare site would develop 65 percent of it, including the canopy and the cultural facilities.

The winning bidder would also set up a trust fund of at least HK$30 billion that would be used to pay for the upkeep and maintenance of the cultural facilities provided.

This came after the initial plan, granting a developer the rights to the entire site and to the operations of the cultural facilities for 30 years, was ditched due to public concerns at a single consortium being granted discretion over a vast swath of prime waterfront land and the future of the city's cultural landmarks.

Hui added that the subcommittee's report failed to explain how sufficient funding could be secured annually under the proposed land sales strategy.

The report also complained that, even according to the current revision, Legco is cut out of its normal oversight duties because of the way the deal is structured.

Hui did offer one concession: if the three shortlisted proponents - who have been given a new deadline to respond by the end of January - expressed willingness to continue under October's modified parameters, Legco would be consulted on specific proposals in the second quarter of 2006.

The government previously stipulated that two of the three shortlisted developers must express interest, otherwise the government will go back to the drawing board.

But Article 45 lawmaker Alan Leong, the subcommittee chairman, says the concession to consult still leaves far too little public oversight. "Not only has the government bypassed Legco, but also other bodies like Exco and the Town Planning Board," he said. "Neither does the present approach respect traditional land sale procedures."

Leong warned that if the government pushes ahead with its current plan, it may set a dangerous precedent.

"Hong Kong could easily enter into an era of barter, where the government could use land for barter," he said. "It could barter a hospital, a tunnel, an auditorium - could that be right?"

The report also criticized proposals to allow the successful bidder freedom to choose which lots it would develop, saying they raise similar concerns as under the original single developer plan.

Smaller developers agreed, saying that if more lots are allotted, more developers would be able to participate in the project.

"We have opposed the single- developer approach since it was first conceived," said Hang Lung Properties chairman Ronnie Chan. "Regardless of whether the lots are minimized or other methods are taken to elicit more participation, it will be better if more developers can join in."

Hong Kong Institute of Architects president Bernard Lim said while the institute supports the West Kowloon project, it is "querying the procurement method, specifically the single- developer model."

But Hui would not backtrack, saying that at this point, the project "had basically won widespread public support."

Earlier, Leong claimed the report was "a consensus reached by all political parties and all 60 members of Legco."

He said that unless the government accepted all of its recommendations the subcommittee would continue with its work. A third report, Leong said, was not out of the question.

"The chief executive has always been mindful of public opinion polls," Leong said.

"He must be able to come up with something, or at least appear to be coming up with something."

Liberal Party chairman James Tien later refuted Leong's claim of complete and universal support for the report, saying his party has one quibble. It backs the government's stance that the successful bidder, which is required to carve out 50 percent of the district's commercial and residential gross floor area, may freely decide which specific lots it will carve out for itself and which will be left for other developers to bid.

"But our view was eventually banned from the report," Tien said.

Leong also insisted that the report does not require the project "to start from scratch."

He said: "The components are still there, and they will fall into place once a new framework is achieved."

The three short-listed developers are: Henderson Land's World City Culture Park; a joint bid by Cheung Kong (Holdings) and Sun Hung Kai Properties called Dynamic Star International; and Sunny Development, a consortium of Sino Land, Wharf Holdings and Chinese Estates Holdings.

Cyd Ho, of the People's Panel on West Kowloon, said she mostly agreed with the report and blamed the government for deviating from public sentiment against a single developer.

Work is proposed to begin in 2007.