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The Housing Department will spare no effort in helping the remaining tenants affected by the clearance of Tai Wo Hau Factory Estate to find alternative accommodation by the end of this month to re-establish their businesses.
This follows a decision recently handed down by the Appeal Panel (Housing) confirming the Notices-to-quit (NTQs) served to the tenants to surrender and leave their factory units by October 31.
It is the Housing Authority's established practice to give an 18-month notice to vacate and to suspend rent increases from the date of announcement.
There are still 115 tenants occupying 278.5 units. Of these, 65 tenants are still in active operation.
"Estate management staff have maintained regular contact with affected tenants and information on vacant units in other Housing Authority factory estates is given to the tenants on a regular basis to assist their relocation," the Assistant Director of Housing (Estate Management), Mr Lee Cert-quinn, said today (October 14).
Another round of restricted tender exercise providing 41 sets of 103 factory units for bidding will be held on October 20.
So far, the Housing Department has arranged nine restricted tenders and nine open tenders offering 203 and 283 sets of units for affected tenants to bid. A total of 29 tenants have successfully acquired new units to re-establish their business.
"For tenants wishing to relocate to the private sector, there are about 1.3 million square metres of vacant factory space at the end of 2005 according to the Rating and Valuation Department's Property Review," Mr Lee said.
Stressing that the Ex-gratia Allowances (EGA) equivalent to seven to 10 years' rent were reasonable, Mr Lee said that any upward adjustment could not be justified. About 78% (329 tenants) of the total number of 424 tenants have so far accepted and applied for the approved EGAs.
"Although displaced tenants are not legally or contractually entitled to any form of compensation, as a responsible and reasonable landlord the authority offered EGAs to assist their relocation", he said.
"The EGA payments have taken into account the dual elements of disturbance including removal cost, rental during fitting-out of new premises and fitting-out costs; and an amount to buy-out the tenant¡¯s assignment right," he said.
Mr Lee said there were two tenants engaging in "coffin-making", a trade which was currently not a permissible one under the authority's approved trade list. One of the tenants has applied for the EGA and surrendered the premises.
"Every effort will be made to assist the other coffin-making trade tenant to find suitable premises in the private sector to continue his business," he said.
Built in 1961¡ª1966, Tai Wo Hau Factory Estate comprises one four-storey block, one five-storey block and one seven-storey block without lift service with 1035.5 units in standard sizes of 18 square metres or 24 square metres.
Ends/Saturday, October 14, 2006
Issued at HKT 10:00
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