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Olga Wong

A revitalisation project that will transform the historic Central Market into a green urban oasis may be scaled down after the government ordered the Urban Renewal Authority to check its financial health.
The revelation has emerged as the authority faces a double whammy of tremendous budget pressure and accusations it is shirking its social responsibilities.
Critics suspect the URA is falling short on its public duty as it struggles to balance the books in the long run, having incurred high acquisition costs for projects and taken on a new mission of providing subsidised flats.
The controversy arose early this month when URA managing director Iris Tam Siu-ying resigned, citing "fundamental differences" with chairman Victor So Hing-woh over the future direction of the authority.
Tam said at the time that it was unacceptable for the URA to act as a developer or an agent providing land to developers.
Yesterday, So responded to the controversy. "The authority's directions remain the same," he said. "But we hope to introduce new thinking" to speed up redevelopment and to ease financial pressure in the long run.
He revealed Financial Secretary John Tsang Chun-wah instructed the URA board in April last year to carry out a value-for-money audit on the authority's structure and operations.
So spoke as about 20 protesters decried the URA's perceived lack of social responsibility.
"Redevelopment and rehabilitation will remain the major mission of the authority," he pledged. "Revitalisation and preservation will be done when there is a surplus."
He declined to confirm if the authority would outsource the acquisition of old flats - a huge drain on the URA's finances.
But it had not given up the Central Market project, he said, though expenditure might be limited to the original budget of HK$500 million instead of the current estimate of HK$1.5 billion. Construction costs had increased because of a delay brought by a judicial review challenging the height of the revamped market, he said.
The project, announced in 2009 and dubbed the Urban Floating Oasis, aims to transform the 75-year-old Bauhaus structure into a complex of art and culture venues with affordable eating places by 2017. It will feature a public open space of at least 1,000 square metres in the business district.
Prolonged talks with the Lands Department over the land premium and stringent rules from the Buildings Department have also added to the delay.
"Should the extra HK$1 billion be spent on better purposes?" So asked. "Should we spend more if the government offers policy support? It requires careful discussion by the board."
Vincent Ng Wing-shun, architect of the project and president of the Institute of Architects, doubted whether the existing design could be delivered for just HK$500 million.
"The design stems from public views. The authority once promised to go ahead even if construction costs exceeded HK$1 billion," a disappointed Ng said.
So did not rule out asking for government money to support a new rehabilitation scheme that would renovate rather than rebuild old sites that had little scope for profit because the number of flats could not be increased.
"We should consider rehabilitating these sites instead of redeveloping them, which would accord flat owners generous compensation," he said.
The authority recorded a HK$2.3 billion deficit in 2013/14, its first loss in five years.
 


URA cash woes may hit Central Market project

Protesters block the car of URA chairman Victor So in Sham Shui Po yesterday to advocate greater social responsibility. Photo: Nora Tam

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Renewal body mulls works on a smaller scale as it is under government instructions to conduct a value-for-money audit after a deficit last year
