The consultation entered its final stage yesterday with the steering committee releasing its latest recommendations.

The new strategy will be finalised by the end of the year and is expected to go into force next year.

At present, to prevent speculation by investors wanting to profit from compensation paid by the Urban Renewal Authority, the authority is not allowed to disclose details of redevelopment projects in advance.

But the bureau said yesterday it was confident that the tendency for such speculation could be countered under its plan for early announcement of projects.

'The more the transparency, the less the chance that an investor can abuse the system,' the bureau's spokesman said.

'We have to balance the public's right to know and the need for confidentiality.'

The exact timing of the projects would be kept confidential, which would also tend to prevent speculation, the bureau said.

It proposes setting up a local planning mechanism in each old district, to be called a district urban renewal forum.

Each forum will plan the scope and strategy of the district's renewal, including where to redevelop, rehabilitate, preserve and beautify.

Its decisions will be guided by aspirations studies commissioned in seven old districts, surveys of buildings' conditions and views gathered from the public.

The forums will be chaired by a professional with a background in renewal issues. Members appointed by the government will comprise district councillors and professionals, and representatives of non-governmental organisations providing services in the district, business associations, the renewal authority and the government.

The forum's activities will be funded by the authority and meetings will be open to the public.

The authority will also offer its services as a consultant to owners who want to initiate their own redevelopment project, helping the owners assemble titles and tender the project to developers. But the authority will not use public money to compensate affected tenants or invoke the power of land resumption for such projects.

Owners will be required to provide assistance to tenants while sharing profits with developers.

They will also be able to opt for flat-for-flat compensation in future projects, but such deals will be subject to conditions, including that the owners must pay the difference between a new flat and the cash compensation equivalent for a seven-year-old flat in the same district.

The price of the new flat will be based on the market value on the same day on which the authority assesses the value of a seven-year-old flat. Owners will have to accept a set price, which means flats in different orientations or on different floors will be priced the same.

The authority will reserve flats with saleable areas from 400 to 600 square feet on lower floors for the owners. As compensation is decided before the building is designed, owners will be repaid the difference if the final size is more than 5 per cent smaller than the original proposed.

Ng Mee-kam, a University of Hong Kong planning professor, welcomed the reforms but said it would be a challenge for the forums to ensure balanced community involvement in the process, particularly from the grass roots.

Steering committee member and Society for Community Organisation director Ho Hei-wah said: 'We have to make sure the forums will not be monopolised by interested parties.'

Key recommendations

Set up local planning bodies in old districts to select areas for redevelopment, rehabilitation and preservation. Bodies will be chaired by government-appointed professionals and comprise community representatives

Redevelopment and rehabilitation will remain key aspects of revised renewal strategy

Urban Renewal Authority (URA) should consider wishes of owners in determining project priorities

In redevelopments initiated by owners, URA will only help owners assemble titles in sale

Owners will receive a flat-for-flat option apart from cash compensation equivalent to seven-year-old flat. But they must pay difference between value of new flat and cash compensation

Social impact assessments should be carried out on district- and project-based levels

Unresolved questions

Will the Urban Renewal Authority remain self-financing?

If owners select flat-for-flat option, can they sell the flat?

What percentage of owners' consent should be secured before redevelopment?

Will the disclosure of redevelopment projects attract investors seeking to profit from authority's compensation?

What help will be offered to elderly owners who are not occupiers?

Can proposed local planning bodies stay independent from government and authority?

Will there be sufficient resources to help residents who lack the knowledge or awareness to participate in consultative activities?