Premature move

PUBLISHED : Friday, 21 June, 2002, 12:00am
UPDATED : Friday, 21 June, 2002, 12:00am

A top priority for the SAR Government is to balance the budget within a reasonable period of time.

One way in which the administration can increase revenue is to realise the full value of its prime locations in the urban areas.

Private development of the North Point Estate could put billions of dollars into the Government's coffers, because of increased land prices and higher duties and fees given the high property values.

A mixed development (private and public flats) may attract huge numbers of prospective homeowners hoping to purchase at substantial discounts. However, this would mean the Government would not realise its potential profits. Having about 850 flats sold at subsidised rates, as is planned for the new development, is not in the interests of the general public.

If the administration was to try and make as much as possible from its prime urban locations, it might not need to think about imposing a sales tax.

It should only be planning mixed developments in urban areas once it has balanced the budget.


North Point