Which century is Lands Department operating in?
We hear of an extraordinary story that makes you wonder about the sanity of the Lands Department. One of our readers complained to the department because a tenant occupying a residential flat in a building was using it to operate a tattoo business. He pointed out in his complaint that the occupation permit for the flat, which determines the use of the property, stipulated residential use.
The Lands Department's response strikes an oddly Dickensian tone. 'The lease conditions governing Inland Lot ... stipulate that the lessee shall not use, exercise or follow on the Lot or any part there of the trade or business of a Brazier, Slaughterman, Soap-maker, Sugar-baker, Fellmonger, Melter of tallow, Oilman, Butcher, Distiller, Victualler or Tavern keeper, Blacksmith, Nightman, Scavenger, or any other noisy, noisome, or offensive trade or business without previous licence from the Government.' The department goes on to say that since the use of the premises as a tattoo parlour 'does not constitute a breach of the lease conditions', it will not take action against the tenant. As our reader remarks: 'The Lands Department appears to be living in another century.' He intends to fight on. Watch this space.
Piper Jaffray says bye-bye Asia
The decline in capital markets has led to the demise of another brokerage house. The US-based Piper Jaffray has said it will either sell or exit its operations in Hong Kong, its only operations in Asia, by the end of September. 'Losses through the second quarter, year-to-date and in 2011 [in the HK business] have been significant,' chairman and chief executive Andrew Duff told analysts, saying the firm 'doesn't have the financial resources to build out the business [in HK] to a more sustainable platform'. The Hong Kong operations lost US$10.9 million last year. Its chief in the city, Alex Ko, has approval to find a buyer for the business or undertake a management buyout, Reuters says. But analysts say the business will probably close. Piper Jaffray moved into Hong Kong in 2007 with the purchase of Goldbond Capital for US$50 million. Goldbond was set up in 2003 by Ko, who was previously head of corporate finance at BNP Paribas Peregrine Capital in Asia. Piper Jaffray's closure follows that of Renaissance Capital late last month and lay-offs elsewhere. Business is looking bleak, with an uncertain outlook, low turnover and dramatic fall in initial public offerings.
Less is more