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1. LCQ18 : Construction of West Rail within budget

2. Housing Authority Appoints CEO and CFO for Management Company

3. LCQ1: Land Control

4. Four sites earmarked for post-secondary college development

5. Pressure building to save Wan Chai Market

1. LCQ18 : Construction of West Rail within budget
Hong Kong Government, 21 April 2004

Following is a question by the Hon Albert Chan and a written reply by the Secretary for the Environment, Transport and Works, Dr Sarah Liao, at the Legislative Council meeting today (April 21) :

Question :

Regarding the West Rail Construction Project (WRCP), will the Government inform this Council whether it knows:

(a) the respective total expenditures of the various projects under WRCP as at the end of last month and how they compare with the originally approved estimated expenditures; where there is over-spending, the organization(s) to shoulder the extra expenditures; and

(b) the number and amounts of claims received by the Kowloon-Canton Railway Corporation from project contractors, and the number of such cases which have been settled; where there is over-spending, the reasons for that?

Reply :

Madam President,

The latest total West Rail expenditure was $40.4 billion against a total budget of $46.4 billion. KCRC expects that the total expenditure will remain within budget.

Currently, there are a total of about 2 390 outstanding claim notifications under review. The total value of the claims changes as claims are being assessed, settled or rejected and contractors are also reconsidering and adjusting their claims. KCRC considers that the total value of the claims is commercially sensitive and release of the information could prejudice the Corporation's commercial position. KCRC expects that the settlement of these claims will be contained within the project budget.

2. Housing Authority Appoints CEO and CFO for Management Company
Hong Kong Government, 21 April 2004

The following is issued on behalf of the Housing Authority:

The Housing Authority today (April 21) announced the appointment of Mr Victor So Hing-woh, as the Chief Executive Officer, and Mr Alfred Li Hung-kwan, as the Chief Financial Officer, of the new management company for the divestment of its retail and car parking facilities.

Mr So will join the new company in mid-July while Mr Li will take up his post in early May. Both Mr So and Mr Li have extensive experience in their respective fields.

The HA's Supervisory Group on Divestment (SGD) headed by Mr Walter Chan approved the recommendation made by a three-member Search Committee.

Commenting on the appointment, Mr Chan expressed confidence that both should be extremely effective in shaping the future business strategy and direction of the new company given their complementary skill sets and background.

"They will work with HA and other professional advisers towards a successful re-structuring of the operation and divestment of the retail and car parking facilities," Mr Chan said.

In 2003, the SGD agreed in principle to pursue the divestment plan through a real estate investment trust, which is tentatively proposed to be listed on the Stock Exchange of Hong Kong before the end of 2004/05.

"As the Chief Executive Officer, Mr So will report directly to the Board of Directors of the new management company which will be formed in due course," Mr Chan added.

The management company is currently a wholly owned subsidiary of the HA. The plan to divest HA's retail properties of some one million square metres and about 100,000 car-parking spaces was approved by the HA in July last year to enable the HA to focus on its primary mission to provide rental housing to people in need.

Following are biographical notes on Mr Victor So and Mr Alfred Li :-

Mr Victor So Hing-woh

Aged 57, Mr So is a holder of Master Degree in Business Administration from the Chinese University of Hong Kong. He is a Registered Professional Housing Manager, and fellow member of the Royal Institution of Chartered Surveyors, Chartered Institute of Housing, Hong Kong Institute of Surveyors and Hong Kong Institute of Housing. Mr So is also a non-official Justice of the Peace.

Mr So was the Assistant General Manager of Hutchison Properties Limited from 1972 to 1981 (subsequently merged with Hutchison Whampoa Group); Property Director of the Mass Transit Railways Corporation from 1981 to 1990; and Executive Director of the Hong Kong Housing Society from 1990 to 2002. He has been Executive Director of Sun Hung Kai Properties Ltd. since 2002.

Mr So is also actively involved in public service. He was a former member of the Kowloon Canton Railway Corporation Managing Board, the Long Term Housing Strategy Advisory Committee, the Town Planning Board and the Housing Authority. He is currently a member of the Supervisory Board of the Housing Society, the Corruption Prevention Advisory Committee of ICAC, the Infrastructure Development Advisory Committee of the Trade Development Council and Council Member of the Employers' Federation of Hong Kong.

Mr Alfred Li Hung-kwan

Aged 50, Mr Li graduated from the University of Hong Kong. He is a member of the Institute of Chartered Accountants of Scotland, fellow member of the Hong Kong Society of Accountants, member of the Takeovers and Mergers Panel of the Securities and Futures Committee and expert member of the Finance Committee of the Kowloon Canton Railway Corporation, and was a member of the Listing Committee of the Stock Exchange of Hong Kong until June 2003.

Mr Li was an Audit Senior at Touche Ross & Co. Chartered Accountants in the United Kingdom from 1976 to 1979; Assistant Audit Manager at Price Waterhouse Certified Public Accountants in Hong Kong from 1979 to 1982; General Manager of Corporate Planning and Director of Century City Group from 1987 to 1989; and Chief Financial Officer and Executive Director for Hang Lung Group from 1989 to 2001.

3. LCQ1: Land Control
Hong Kong Government, 21 April 2004

Following is a question by the Hon Lau Ping-cheung and a written reply by the Secretary for Housing, Planning and Lands, Mr Michael Suen, in the Legislative Council today (April 21):

Question:

The Lands Department is responsible for land control for unleased Government land and enforcement of lease conditions in respect of leased land. In view of a series of recent revelations about illegal extraction of pebbles from river beds, unlawful occupation of unleased land and construction waste being deposited on private land, etc., will the Government inform this Council of:

(a) the respective establishments and numbers of officers of the Land Executive and Land Inspector grades undertaking the above duties in the Lands Department;

(b) the respective numbers of inspections conducted and prosecutions recommended in the past three years by such officers in their discharge of the above duties, as well as the number of suspected cases of unlawful acts which were still outstanding after six months; and

(c) the review measures to ensure that suspected cases of unlawful acts in this respect have been duly dealt with?

Reply:

Madam President,

Lands Department's land control and lease enforcement work in the New Territories are mainly undertaken by officers of the Land Executive and Land Inspector grades. Similar duties in the urban area are mainly undertaken by the Estate Officer grade. My reply to the three parts of the question is as follows :-

(a) The staffing position in respect of the concerned grades for lease enforcement and land control work is:

(b) In the past three years, 52,745 inspections were conducted in respect of land control and lease enforcement work with a total of 26 prosecutions recommended.

Of the cases processed, 91 took more than six months to process. They were lease enforcement cases in which the property owners concerned had applied for a short term waiver and requested deferral of enforcement action by Lands Department during the application processing period.

(c) To ensure that cases of suspected irregularities are properly dealt with, each District Lands Office (DLO) has drawn up a monitoring chart of such cases. A Senior Land Executive is responsible for monitoring progress of the cases. More serious cases will also be handled by the District Lands Officer personally. After the completion of the control action and depending on the circumstances of individual cases, re-inspections will be conducted by DLO staff within three to six months. This is to prevent recurrence of the irregularities. Cases of suspected irregularities are also considered by DLOs' District Review Boards on a regular basis.

4. Four sites earmarked for post-secondary college development
Hong Kong Government, 21 April 2004

Four sites had been earmarked and reserved for post-secondary education development in the second Land Grant Application Exercise, a government spokesman announced today (April 21).

"The sites are located at West Kowloon Reclamation, Tung Chung, Area 56 and Area 73B of Tseung Kwan O (see location plans attached). They are all easily accessible, either within walking distance from MTR or well-served by public transportation," the spokesman said.

In addition to the four sites allocated under the first Land Grant Exercise in 2003, there are already eight sites reserved/allocated under the Land Grant Scheme for Post-secondary Education Providers.

The four sites in the second Land Grant Application Exercise will be granted to successful applicants by private treaty at nominal premium. They will be required to enter into service agreements with the government to provide the education programmes in accordance with the benchmarks and standards set out in their proposals. It is estimated that the college campuses will be completed between 2007 and 2009, and can provide more than 10,000 additional student places.

"The construction of purpose-built facilities will improve the learning environment, and provide a more complete campus life for students of self-financing post-secondary programmes," the spokesman added.

The government will soon invite applications from non-profit making educational institutions offering full-time, accredited and self-financing programmes at associate degree, higher diploma or above level to construct purpose-built college premises on the sites.

The applications will be evaluated against a set of criteria including the applicants' experience in providing post-secondary education, the nature and quality of programmes to be offered, the projected student enrolment, facilities to be provided, the financial arrangements for implementing the project and the site development plan.

"The applications will be assessed by a selection committee appointed by the Secretary for Education and Manpower who will make a final decision on site allocation," the spokesman said. "It will be a competitive process and the best proposals will be selected."

The Chief Executive announced in his 2000 Policy Address that the government would support the progressive increase in post-secondary education opportunities, to provide post-secondary education for 60% of secondary school leavers by the year 2010.

To support this initiative, the government has launched a package of support measures, including a $5 billion interest free start-up loan scheme for service providers, an accreditation grant scheme for them to cover the costs of academic accreditation and a new means-tested financial assistance scheme for needy students.

The civil service has accepted local associate degree qualifications as an entry requirement for 13 grades.

"The provision of land for post-secondary providers further demonstrates the government's strong commitment to ensuring the success of this policy," the spokesman added.

5. Pressure building to save Wan Chai Market
CHLOE LAI and DIKKY SINN, SCMP 22 April 2004

Pressure is mounting on senior government officials to step in to save the historic Wan Chai Market, which faces demolition in 2006.

Conservationists yesterday called on Secretary for Home Affairs Patrick Ho Chi-ping to negotiate with developer Chinese Estates Holdings to preserve the building, a piece of rare 1930s architecture.

They cited Kom Tong Hall in Mid-Levels and part of the Tiger Balm Garden in Tai Hang as good examples of how heritage in Hong Kong could be preserved through "strong will" and government efforts.

Lister Cheung Lai-ping, chief executive of the Conservancy Association, said: "Wan Chai Market is a government property. If the government sincerely wants to save the market from demolition, it should have senior officials, such as Mr Ho talk to the developers."

Wan Chai District Council chairwoman Ada Wong Ying-kay said: "I am sure if the government has a strong will to save the market, it will be able to find a solution with the developer. Of course, what we are talking about here is intervention by senior officials."

The Hong Kong Institute of Architects is planning a campaign to save the market. It has conceded it faces an uphill battle, as both the Antiquities and Monuments Office (AMO) and the Town Planning Board have already endorsed the demolition in 2006 to make way for a 46-storey commercial and residential tower.

The AMO said it had approached the developer early this year to persuade it to preserve the market but the request was rejected.

The Home Affairs Bureau refused to comment on the conservationists' intervention request.