Facing reality and making hard choices

The Government is taking a series of bold measures to increase the short- and medium-term supply of housing land while pushing forward long-term land supply at the same time. Three days ago, I introduced details of the Stage 2 Public Engagement on “Enhancing Land Supply Strategy: Reclamation Outside Victoria Harbour and Rock Cavern Development” and shared some of our thoughts. We hope you all get the chance to express your views and support us in commissioning technical studies on the potential reclamation sites.

In the past few years, the lack of land supply has hindered our social and economic development and the livelihood of the community has been adversely affected. However, land formation and development take a long time and the demands of the community may change unpredictably. In order to respond to the demand with more flexibility and avoid a huge surge in property prices, the Government is determined to develop land on a large scale and establish an abundant “land reserve” that can more than meet short-term demand. A land reserve would allow us to utilise land in a timely manner in future.

Why do we have to consider reclamation? Any method of land supply faces a certain degree of challenge. For example:

1. The rezoning of “Government, Institution and Community” (GIC) land has been frequently discussed recently. Without further elaboration, I believe that you will understand how controversial it is, even though the Government has already considered all relevant aspects – including whether it is still necessary to reserve land for the originally designated purpose before rezoning. The Government has also considered other factors and has consulted relevant stakeholders. However, we need to understand that the available GIC land for rezoning is not be unlimited, and the size of these sites is usually small. It can only be used to tackle pressing needs in the short-term but cannot be considered as a long-term and stable source of land supply.

2. Regarding change of land use, the Government has already rezoned many industrial sites and launched the revitalisation of old industrial buildings in the past two years. The biggest limitation of this model of land supply concerns the ability of these sites to supply appropriate development projects on time is almost entirely controlled by the associated owners and developers. Commercial considerations and the prevailing market situation dominate the timing and scale of their development so it is difficult for the Government to control the time of housing supply and the number of flats for such sites.

3. In the case of urban renewal, if it is a private project it takes time to purchase and aggregate the dispersed property rights. As they are initiated by developers the Government has no control of the time and quantity of supply. Moreover, the scale of many redevelopment projects is not large. Regarding the redevelopment projects of the Urban Renewal Authority (URA), unless they are on a large scale they can do little to help increase housing supply. Urban renewal projects are few and involve compensation and relocation of the affected stores and residents and even conservation of heritage, which may take a long time. URA redevelopment projects can only provide a limited increase in the number of residents due to the originally crowded living environment on the sites. The project aim of the URA is to renew old urban areas so as to enhance the living quality and the safety of the community and to help those who are living in dilapidated condition, and that is why even though the scale of the project is small, it is still worth doing so. But from the perspective of land supply, it should not be deemed as a major source.
4. Reuse of ex-quarry sites is one of the models of land supply that can utilize land resources efficiently and we will proceed with great effort. But as quarry sites vary in size and because the number of these sites is few, they cannot be deemed as a source that can provide large and constant source of land.
5. Regarding New Development Areas, such as the North East New Territories New Development Area (NENT NDA), even though it has been planned for a number of years it is still arousing a number of controversies and there are many complicated problems to be solved, including land resumption, agriculture preservation, rehousing arrangements, compensation and environmental conservation and so on. The difficulties and the time it takes are tremendous.
6. The Government is determined to develop brownfield sites, which are usually referred to as deserted or damaged agricultural and industrial land. However, we cannot develop each site in isolation, but should go through technical, transportation and other infrastructure assessment, so as to confirm the feasibility of development. Comprehensive planning is required to provide a better living environment and jobs and facilities for the community. It will also involve rehousing and compensation for residents and stores, which is no different from developing a new area.

Therefore, no matter which option of land supply is considered, there are pros and cons. There is no perfect option. But we are not afraid of difficulties and we are determined to face any problems directly and find a way forward.

If reclamation is supported by the public, the Government will have a better control on the timeframe and scale of land supply. Moreover, the lands provided by reclamation are larger so that planning can be more flexible. In contrast to residential, commercial, industrial or entertainment areas, reclaimed land can also be used for special purposes, such as providing temporary housing or assisting the rehousing of residents affected by redevelopment, so that they can move back to their original community after the redevelopment. Artificial islands can be used as decanting sites to relocate industrial or unpleasant facilities and release valuable land in the urban areas for housing or other uses, and to improve the local environment and reduce community conflict.

In fact, in the past there have been many successful cases of reclamation outside Victoria Harbour, such as Sha Tin, Ma On Shan and Tai Po, and there are different types of housing and community development on the reclaimed land and hundreds of thousands of people are living there. The experience of new towns suggests that a larger area of land can improve the cramped living space and respond to the needs of population growth and economic development.

We understand the community’s concerns about reclamation and attention should be paid to the possible impacts on the local community and the natural environment. Therefore, we are going to conduct an in-depth technical assessment on the three proposed reclamation sites in the western waters to understand more about the near-shore activities of Chinese white dolphins. We will invite professional experts and green groups to work together using technology including simulation techniques, theodolites, sonar probes and others to trace the effect of reclamation on the activities of the dolphins and explore solutions, for example to place artificial reefs at suitable locations to enhance the habitat of the dolphins. Also, we will conduct a cumulative environmental and marine ecology impact assessment to determine the scope of possible reclamation. If reclamation goes ahead we will plant mangroves and create mudflats at suitable locations to enhance the shore and marine environments, and during the process of construction we will take measures to reduce the impact on the environment.

We hope the public can understand the problems and the difficulties we are facing, and accept that there is no perfect option. We should try to remain open-minded and pragmatic, explore all feasible methods together and be prepared to compromise when necessary.

24 March, 2013

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