Editorial | Small-house policy is an unsustainable burden

Of all the disputes involving the city’s constitution and government policies, the land rights for indigenous villagers remains one of the most divisive, and understandably so. The colonial legacy that gives male descendants in the New Territories a wealth of housing privileges under the so-called small-house policy is not only discriminatory and unfair by today’s standards, it is also an obstacle to effective land use and an unsustainable burden to wider society in the long run.

It is disappointing that the much-criticised policy that was partially struck down by the Court of First Instance in 2019 was fully upheld at a higher court. Referring to the protection for “the lawful traditional rights and interests of indigenous inhabitants” under Basic Law article 40, the Court of Appeal ruled that the housing arrangements, commonly known as “ding right”, was “constitutional in its entirety”.

The decision effectively enabled villagers not just to build houses on their own land, but also on plots swapped with, or granted by, the government.

The government is probably all too happy to close this bitter legal chapter. The so-called traditional rights of indigenous villagers have long been a matter of debate and scrutiny in court and the legislature, so much so that it may turn into a source of instability if the disputes are not handled by the government properly. The row over reforming inheritance rights among villagers before the handover became a flashpoint of discontent.

That there is still “one city, two systems” when it comes to land rights and use is just ironic. Nearly 24 years into the reunification with China, the differences between indigenous and non-indigenous villagers should have been consigned to history. The policy looks even more anomalous as the divide between urban and rural areas becomes less apparent nowadays.

Barring further challenges at the city’s highest court, the outcome has long term implications on housing development. A land use watchdog says that if the policy is to stay, there will be no hope of freeing up hundreds of hectares of rural land for larger housing projects. The city stands to suffer if its land cannot be effectively used.