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1. Henderson boss joins attack

1. Henderson boss joins attack
SANDY LI , SCMP 19 April 2006

Another big property developer has voiced criticism at government officials' indecision over approving new developments, saying it will eventually equate to astronomical losses for the public.

Henderson Land Development vice-chairman Colin Lam Ko-yin said: "Many projects don't progress because officials are too nervous to take responsibility."

He echoed the views of New World Development managing director Henry Cheng Kar-shun, who last week complained that projects were being delayed by government officials' reluctance to make decisions for fear of being accused of colluding with big business.

In today's highly politicised climate, Mr Cheng said officials would rather do nothing than risk condemnation.

Mr Lam said government officials' reticence applied to both large and small developments.

He said development plans at the former Kai Tak airport had made little progress, resulting in the West Kowloon cultural project being delayed.

Eventually it could end up in "a big loss for the community", he said.

"Besides inflexibility in premium negotiations and land grants, officials are also reluctant to make even slight changes to a project's gross floor area or master layout plan," he said.

Henderson Land's and New World's criticism came after the two developers were embroiled in controversy over the Grand Promenade and Hunghom Peninsula, which led to heated debate among politicians, pressure groups and environmentalists.

The Grand Promenade controversy unfolded in November when an Audit Commission report found that a decision by former buildings chief Leung Chin-man - made in the face of objections by the Lands Department - enabled Henderson Land to double the number of flats on the site and rake in an estimated $3.23 billion for an additional premium of just $6 million.

Last month, New World Development and partner Sun Hung Kai Properties were forced to scrap their plans to convert flats in a Hunghom Peninsula estate into luxury apartments owing to the high premium.

Mr Lam emphasised that "consistency and transparency" were two very important factors for a trustworthy government.

"And the existing government has neither of them," he said, referring to how government officials had changed their approach to approving projects from the way it had been done for the past 30 years.

Pang Shui-kee, the managing director of surveyors S K Pang, said the long delay in getting such large projects off the ground carried a heavy opportunity cost for developers, subject to market cycles.

But legislative councillor Ronny Tong Ka-wah rejected suggestions that the government was paralysed by the highly politicised climate, insisting that everyone received equal treatment.

"They [businessmen] could get away with many things during the Tung [Chee-hwa] administration, so they were unhappy when the current government changed everything back to normal," he said.