§ Mr. Parryasked the Secretary of State for Foreign and Commonwealth Affairs what criteria are used in assessing compensation for land, property and businesses acquired for the building of the Mass Transit Railway in Hong Kong; and who is responsible for paying the compensation.
§ Mr. LuardCompensation for land and buildings is assessed at market value at the time of acquisition as provided for in the Mass Transit Railway (Land Acquisition and Related Provisions) Ordinance. Businesses as such are not acquired, but compensation is assessed for loss or damage to a business caused by the acquisition of land. The authority for assessing and paying compensation is the Director of Public Works. Compensation matters which cannot be settled between the authority and the owner are referred to the Lands Tribunal.
§ Mr. Parryasked the Secretary of State for Foreign and Commonwealth Affairs how much has been paid in compensation for acquisition of land and property for the construction of the Mass Transit Railway in Hong Kong to date; and how many claims are still outstanding.
§ Mr. Luard$HK44,253,637 has been paid in compensation to date. 51 claims are outstanding, 39 of which have been referred to the Lands Tribunal. 36 of these 39 claimants have accepted amounts equivalent to the Hong Kong Government's statutory offer of compensation as advance payments pending adjudication.
§ Mr. Parryasked the Secretary of State for Foreign and Commonwealth Affairs what assistance is given by the Hong 857W Kong Government to enable small business men to carry on their trades following compulsory acquisition of their businesses for the construction of the Mass Transit Railway.
§ Mr. LuardAs I have explained in answer to another of my hon. Friend's Questions today, businesses are not acquired but compensation is assessed for loss or damage to a business caused by land acquisition. Where claims are referred to the Land Tribunal because a settlement cannot be reached, the Hong Kong Government, pending adjudication, offer assistance in the form of an advance payment equivalent to its statutory compensation offer. Half of this sum is paid on acceptance, and half when vacant possession of the premises has been given. Owners of businesses must be given three month's statutory notice of land acquisition and at least six months' notice of their likely removal date. In practice, longer periods of notice are usually given.
§ Mr. Parryasked the Secretary of State for Foreign and Commonwealth Affairs how many families and small traders have been evicted to make way for the construction of the Mass Transit Railway in Hong Kong to date; and how many families were rehoused.
§ Mr. Luard221 families and 37 businesses have moved from premises acquired in connection with the construction of the Mass Transit Railway. Domestic occupants have been offered public housing as well as cash compensation, but in 19 cases they have preferred to find their own accommodation. In addition, 784 families have moved into public housing and 257 families into temporary accommodation in licensed areas from squatter structures cleared from Crown land for the Mass Transit Railway.
§ Mr. Parryasked the Secretary of State for Foreign and Commonwealth Affairs what negotiations take place between the Hong Kong Government and small traders concerning compensation for acquisition of premises for the construction of the Mass Transit Railway before eviction takes place.
§ Mr. LuardEvery effort is made to settle compensation, or advances of858W compensation, before removal. Meetings are held between those affected and the staff of the Public Works Department, the Housing Department and/or the Home Affairs Department in order to ensure that the provisions of the Mass Transit Railway (Land Acquisition and Related Provisions) Ordinance, the procedures for making claims and the details of individual offers of compensation and rehousing are clearly understood.
§ Mr. Parryasked the Secretary of State for Foreign and Commonwealth Affairs what was the final settlement of compensation to tenants of the Tai On Mansions who were evicted to make way for the construction of the Mass Transit Railway in Hong Kong; what was the original offer in each individual case; and which of these tenants have been resettled in their small businesses.
§ Mr. LuardThe domestic occupants of Tai On Mansion have all accepted public housing and payment of removal expenses at a rate of $HK20 per square foot of area occupied and lower rates for storage space. In total $HK186,244 has been paid to 47 families. The position in respect of the former occupants of business premises in the building is as follows:
(i) Welcome Furniture Company:
A statutory offer of $HK80,500 was made. Agreement on a higher figure is understood to be imminent. The business is operating from a nearby, long-established, branch store.(ii) Very Good Tailors:
A statutory offer of $HK31,150 was made. Agreement has been reach at $HK52,601.44. The owner is continuing in business with his brother who has operated a tailor's shop elsewhere in Kowloon for some years.(iii) Tak Yuen Cafe:
A statutory offer of $HK19,500 was made. Agreement has not been reached pending the opening of alternative premises nearby, when the claimant's losses can be more accurately assessed.(iv) Paramount Photo Services Co.:
859WA statutory offer of $HK13,807 was made. Agreement has not been reached. The owner's claim is likely to be referred to the Lands Tribunal soon. The premises were a showroom for a film developing and processing laboratory operating elsewhere. It is not known whether alternative premises for the showroom have been found.(v) Sze Lai Shoe Co.:
A statutory offer of $HK15,800 was made. The Lands Tribunal awarded compensation of $HK21,024. It appears likely that alternative premises for the shoe shop will be obtained.(vi) Yuen Fat Store:
A statutory offer of $HK22,815 was made. No settlement has been reached. The owner's claim is likely to be referred to the Lands Tribunal in the near future.(vii) Wing Luen Tailors:
A statutory offer of $HK35,210 was made. The final settlement was $HK55,895.77. It is not known whether this business has been re-establishd elsewhere.The owners of the businesses whose claims are outstanding have been paid advances of compensation in the amount of the original statutory offers. Because it took some time to obtain the evidence on which to base statutory offers, these were preceded by ex gratia offers of cash assistance at a rate of $HK40 per square foot of business area occupied and lower rates for ancillary uses. The ex gratia offers were, however, refused.