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Terms of construction contracts between the Housing Authority and the main contractor for the three construction sites re-entered by the Authority cannot prevail over the law.
"As creditors for the main contractor have petitioned for winding up the company, it is not possible for the Authority to directly pay workers their overdue payment in accordance with terms of the construction contracts," a spokesman for the Housing Department said.
He was speaking in response to press enquiries on the outcome of a meeting today (March 8) between the Permanent Secretary for Housing, Planning and Lands (Housing), Mr Thomas Chan Chun-yuen and Legislative Councillor Lee Cheuk-yan and a group of construction workers directly employed by the main contractor.
"Although the terms of construction contracts between the Authority and the main contractor provide for the Authority to pay to the workers directly employed by the main contractor following verification by the Commissioner for Labour their overdue wages, any of these terms which contradict the insolvency law will be considered void by the courts as they are contrary to public policy," he said.
The spokesman stressed that any actions taken by the Authority should have a firm legal base and should not affect the interest of the Authority.
"Contract terms which contradicts insolvency law shall be void. The Authority must act in accordance with the law. Therefore, it is not possible to settle the wage arrears to workers directly employed by the main contractor," he said.
"On the night when the workers demanded their outstanding wages, we heard different proposals. After thoroughly understanding the matter and seeking legal advice, we are of the view that the Authority would not and cannot act beyond the framework of the law," the spokesman said.
Ends/Wednesday, March 8, 2006
Issued at HKT 19:11
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