The system controlling sites granted under private treaty is being reviewed
Applications by property developers to change the land use of sites granted under private treaty for community-related projects have been put on hold while the system is reviewed, the housing minister said yesterday.
The system has been criticised for a lack of transparency by lawmakers, who say it is open to collusion between officials and developers.
Secretary for Housing, Planning and Lands Michael Suen Ming-yeung said at a meeting of Legco's planning, lands and works panel that there were loopholes which needed plugging, but he did not go into details.
'We are going through the files. We want to find out the problems and study how to fine-tune the system. We want the study to be completed as soon as possible,' he said.
Mr Suen said the government was preparing a list that details land granted by private treaty - sold directly rather than through auction. The list will include sites on which developers paid premiums to change their use to residential or commercial purposes.
The government grants land for a nominal amount to groups and companies under private treaties to allow the construction of community facilities, such as schools, churches, welfare centres and oil and power stations. Developers who purchase the sites and want to change their use must pay a premium. The procedure requires negotiations with officials and approval from the Executive Council.