Green benefits for community not apparent
Louis Loong Hon-biu, secretary general, the Real Estate Developers Association of Hong Kong, is quite right that developers will maximise a site's potential and that this is 'simply a matter of reality and sound business' ('Developer must set priorities under new floor area rules', January 24). It would be naive for anyone to expect anything different.
Mr Loong makes the point that 'the existing policy was put together to encourage green features for a reason'. A decade after this policy was implemented, that reason appears opaque, as the green benefits for the general community are not apparent. The policy concessions have been exploited to maximise gross floor area and this has greatly boosted developers' profits. It has also swollen the Land Department's revenue, which ludicrously will not be used for the general community's direct benefit, but will be recycled for capital works.
Mr Loong suggests that the government should work closely with the property sector to draft a new plan. However, in 2001, the government worked closely with the sector when the existing concessions were formulated and the results are now clear.
The perception is that whenever officials work closely with the property tycoons, it is at the expense of the public.
Competition in the marketplace, without the need for government incentives or subsidies, should ensure that Hongkongers are offered a full choice of product by the property sector. However, another perception is that the handful of major developers operate a cartel to offer Hobson's choice.
Mr Loong is correct that policy changes should be for the better and should be aimed at improving (not only maintaining) living conditions. History has shown that the product on offer gets smaller and poorer, while prices and profit escalate. I will be happy to see a fully comprehensive competition law implemented as soon as possible. Will Mr Loong agree?