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The following is the speech (translation) by the Chief Secretary for Administration, Mr Rafael Hui, in introducing Government Minute responding to Report No. 45 of the Public Accounts Committee in Legislative Council today (May 10):
Madam President,
Laid on the table today is the Government Minute responding to Report No. 45 of the Public Accounts Committee (PAC). The Minute sets out the measures that the Government has taken or is taking on the conclusions and recommendations contained in the Report.
The PAC has selected the Audit Report on development of a site at Sai Wan Ho for detailed examination. The Administration is grateful for the time and effort that the PAC has devoted to the report. Upon tabling of the PAC report on February 15, the Chairman of the PAC has explained the PAC's views on the Sai Wan Ho development. I would like to focus on responding to some of the comments made by the Chairman of the PAC on February 15.
I trust everyone would agree that land is one of the most valuable resources in Hong Kong. In order to optimise the use of land, the Government firmly believes that it is of utmost importance to ensure that our development approval process is fair, effective and transparent. The existing mechanism for handling property development has been practised for some time and its operation is basically sound. In reviewing the Sai Wan Ho case, we and the PAC share a common objective in enhancing the fairness and transparency of the development approval process, whilst not creating undue hurdles for the industry.
The PAC and the Director of Audit have made certain observations and recommendations in a number of areas, including development density of the site; pre-tender enquiries; site classification; and granting of gross floor area exemption and bonus areas. The Government has accepted all the recommendations made by the Director of Audit which were subsequently endorsed by the PAC. Through the concerted efforts of the Planning Department, Lands Department, Buildings Department, Architectural Services Department and the Housing, Planning and Lands Bureau, a series of improvement measures have already been implemented to address the recommendations of the PAC and the Director of Audit. I would like to take this opportunity to highlight some of the improvement measures.
First of all, the Government fully recognises the importance of implementing the planning intention as regards development intensity. In order to meet the community's aspiration for a quality living environment, we have, in conjunction with the Town Planning Board, proactively and progressively taken measures to control building heights and density of developments through stipulation in the statutory town plans. To ensure that proper regard is given to the provision of public facilities, the Planning Department will, before the sale of a site, provide to the relevant Government departments an updated assessment on the adequacy of such provision in the concerned district.
In addition, the Government is committed to introducing measures from time to time to further enhance transparency of the procedures for the sale of government land. Heeding the PAC's recommendations, the Government has already put in place a number of improvement measures. For instance, we have revised the relevant internal instructions defining which types of information given to an enquirer in the pre-land sale stage pertaining to the development parameters, such as gross floor area (GFA), car parking requirement and provision of government/institution/community (GIC) facilities, and under what circumstances such information is to be publicised on the Government website and in newspapers, thereby ensuring a level playing field. Moreover, regarding projects which require GIC facilities to be provided by the developers, the Architectural Services Department will co-ordinate with other Departments to ensure that the design requirements of such facilities are feasible and are properly specified in the conditions of sale for reference by potential bidders.
Site classification is another area over which the PAC has expressed concern. In this regard, we have clarified the definition of 'street' for site classification purposes under the law by amending the Building (Planning) Regulations. The Buildings Department will also ensure that all relevant departments will be properly consulted in the process of determining site classification. Legal advice will be sought where necessary relating to site classification.
The PAC has also made various observations concerning the granting of GFA exemption and bonus area. We have already taken concrete action to strive for improvement in this area. For instance, the Buildings Department has amended the relevant Practice Note. The Practice Note now states clearly that all public transport terminuses (PTTs) will count for GFA, unless the relevant outline zoning plan (OZP) or a specific planning approval allows the PTT to be exempted from GFA calculation. In processing bonus GFA applications, the relevant departments will proactively engage in discussion with a view to forming a consensus view. Again, we will seek legal advice where necessary.
We appreciate the PAC's recommendation that the Government should review the criteria for deciding whether the maximum GFA of a site should be specified. The Government will actively consider the need to specify the maximum GFA and consult the Legislative Council, the industry, and the concerned professionals and stakeholders before determining the way forward.
The PAC has also stressed the importance for the Building Authority (BA) to consider the factors listed in any applicable Practice Note in his exercise of discretionary powers. Indeed, the BA has issued Practice Notes to the industry on the criteria that the BA will adopt in the exercise of such discretion on various subjects. Internal guidelines on factors to be considered in the exercise of discretion have also been issued to serve as general guidance for relevant officers. I would like to emphasise that the BA and officers authorised by him to exercise such discretion have to act in good faith, follow the law and the criteria promulgated in the Practice Notes and take into account all factors relevant to the issue under consideration in the exercise of discretion. Moreover, the Buildings Department has taken further steps to enhance transparency by publishing a summary of the matters considered at the Building Committee of the Department, and the decisions made, on the Department's web site.
The Government concurs with the PAC on the importance of effective communication and coordination among government departments in handling property development approval and achieving the planning intention. The Housing, Planning and Lands Bureau, the Planning Department, the Lands Department and the Buildings Department have all along been working closely together in this respect. There are established forums to discuss and resolve inter-departmental issues at various stages of the development process, including the District Lands Conference, BA Conference and District Planning Conference. The departments will consult the Bureau for guidance on issues involving policy implications. At the same time, the Bureau has set up dedicated forums to enhance coordination among the departments, in dealing with both ad hoc and systemic issues. The Government will continue to seek improvements in this area.
Madam President, the Government published the report of the Independent Committee of Inquiry on Sai Wan Ho Development (ICI) yesterday. The ICI was set up in response to public concerns that some issues about the exercise of discretion by the BA may not be clear. In order to further examine whether the exercise of discretion by the former BA in the Sai Wan Ho case has been proper and to identify areas for improvement, the Chief Executive appointed the ICI on 16 November last year to conduct an inquiry. The ICI operated independently. Its terms of reference were to examine the procedures in approving the site classification, GFA exemption for the PTT and bonus GFA for dedication of the reserved area for public passage in respect of the Sai Wan Ho site, including how and under what circumstances the BA's discretionary powers were exercised; and whether BA's discretionary powers had been exercised properly. The ICI submitted its report to the Government last month with its conclusions and recommendations. The Government accepts the ICI's conclusions and recommendations concerning the exercise of discretion by the BA in the subject development.
I have just explained the terms of reference of the ICI. The focus of its inquiry is different from that of the earlier Value for Money Audit by the Director of Audit and the hearings of the Public Accounts Committee. In spite of that, these studies have provided many useful observations and similar recommendations, for instance, in relation to the need to enhance the communication among government departments and examine the issue of specifying maximum GFA in land leases. We have already implemented or will actively consider these recommendations.
The purpose of the Government Minute today is to brief Members on the progress of the Government's follow up actions on the conclusions and recommendations of the reports of the Director of Audit and the PAC. If Members would like to further discuss and follow up on the Report of the ICI, the concerned Bureau and departments would be happy to make the necessary arrangements.
Finally, I wish to echo the PAC Chairman's remarks that the PAC plays an important role in ensuring value for money in the delivery of public services. The Administration looks forward to receiving the PAC's constructive comments and wise counsel. As always, we shall respond positively and promptly. Thank you.
Ends/Wednesday, May 10, 2006
Issued at HKT 17:46
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