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Following is a question by the Hon Wong Kwok-hing and an oral reply by the Secretary for Housing, Planning and Lands, Mr Michael Suen, in the Legislative Council today (May 10):
Question:
Regarding the compensation and assistance provided by the Housing Department ("HD") to factory buildings tenants affected by its clearance programmes, will the Government inform this Council:
(a) of the reasons for offering ex-gratia allowances to factory tenants and the method for calculating the allowances; how this calculation method compares with those adopted by the Kowloon-Canton Railway Corporation and the Urban Renewal Authority, and whether HD will conduct a review with reference to the results of the comparison;
(b) of the criteria adopted by HD for determining whether it will assist factory tenants in re-establishing their businesses elsewhere, and why HD has not rendered any assistance to some tenants of Tai Wo Hau Factory Estate, which will be demolished soon; and
(c) whether it knows the number of workers currently employed by the tenants of Tai Wo Hau Factory Estate, and the anticipated numbers of workers who will continue to be employed and who will become unemployed after the factory tenants' vacation, and whether the allowances offered by HD to factory tenants cover the cost of severance payments?
Reply:
Madam President,
My reply to the three-part question is as follows:
(a) The reason of the Housing Authority offering ex-gratia allowances to factory tenants affected by clearance is to minimise the impact of clearance on them and to meet part of the costs for removal of business. In calculating the amount of ex-gratia allowance, the Housing Authority takes into account the expenses incurred by tenants as a result of relocation upon clearance, such as removal costs, fitting-out costs, stamp duty, etc. As tenants who acquired their tenancy in old factory estates in early years were endowed with the right of assignment, this factor has also been taken into consideration in determining the rate of ex-gratia allowance. The established mechanism outlined above has been in use since 1990, and was applied to clearance of seven factory estates.
The nature, objective and target group of land resumption operations undertaken by various organisations are different. Direct comparison of their payment packages is hence inappropriate. Unlike other factory tenants, tenants of the Housing Authority's old factory estates enjoy the right to assign their tenancy. This unique aspect of their tenancy is reflected in the amount of ex-gratia allowances offered to them. We have no intention to adopt other calculation methods.
(b) The Housing Authority provides ex-gratia allowances to tenants and operators and gives them 18 months' advance notice prior to clearance. As there are vacant units in other factory estates under the Housing Authority, they can also bid for suitable units through restricted and open tender exercises. Since announcement of the clearance of Tai Wo Hau Factory Estate, four restricted tender exercises and six open tender exercises had been held, respectively providing a total of 78 and 226 sets of factory units for bidding.
(c) Factory tenants are not required to report the number of their employees to the Housing Authority. Hence, we do not have such information on hand. Nonetheless, through routine visits and patrols, we note that there are not many employed workers on site.
Tenants are given sufficient advance notice prior to clearance. If tenants decide to wind up their business, they must make the necessary long service and severance payments to their employees in accordance with the Employment Ordinance. These expenses are not covered by the ex-gratia allowance granted by the Housing Authority.
Ends/Wednesday, May 10, 2006
Issued at HKT 14:29
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