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Disco Bay fiasco won't be repeated
Michael Ng, Hong Kong Standard
May 19, 2005
Better town planning, greater transparency make it unlikely land abuse will recur, says Tsang
The Discovery Bay project deviated from its original 1976 concept of a holiday resort and residential and commercial development to grow into a first-home community, without planning approval.STAFF PHOTO
Another Discovery Bay type fiasco - in which land designated for one purpose is used for another - is unlikely, given the increasing maturity and transparency in town planning, Chief Secretary for Administration Donald Tsang said Wednesday.
He was responding to a report by the Legislative Council Public Accounts Committee, which stated that the project had deviated from its original 1976 concept of a holiday resort and residential and commercial development to grow into a first-home community, without the approval of the then Executive Council.
"Whether the then land authority should have judged the changes of the development at Discovery Bay as representing a fundamental change from the original concept and submitted them to the then Executive Council for endorsement is a matter of interpretation,'' Tsang told Legco.
To remedy the matter, Tsang said the Housing, Planning and Lands Bureau had already sought Exco's endorsement for what had taken place in the Discovery Bay development.
"As our town-planning system has become mature, with a clear process for preparing statutory plans and channels for hearing public views, and as a system of enhanced accountability and transparency is now in place, it is unlikely that the experience of the Discovery Bay development will recur elsewhere,'' he said.
He noted that the Lands Department has already implemented active steps, as suggested by the Public Accounts Committee, to deal with the land encroachment problem.
According to the report, the Lands Department has not yet set up the boundaries of the Discovery Bay site, even though an adjoining 41,200 square meter government site has been occupied without authorization for more than 20 years.
This mistake, along with the unapproved amendment in the Discovery Bay development concept, has cost the government HK$160 million in lost potential revenue from uncharged land premiums, the audit commission report revealed last October.
But no penalties have been imposed on the developer, HKR International.
In January, former Chief Secretary for Administration Sir David Akers-Jones, who was also Secretary for the New Territories during the 1970s, revealed that the government of the day had allowed the developers to change the project's concept because it was concerned that the land could fall into the hands of a Moscow bank controlled by the former Soviet Union.
Singaporean businessman Edward Wong, the original landlord for the Discovery Bay development, had primarily intended to develop the area into a resort, with financing to be provided by several banks, including the Moscow Narodny Bank (MNB).
But when Wong went bankrupt in 1973, the Lantau project was put into liquidation and all local investors withdrew.
MNB, which had lent Wong HK$1.6 billion, sued him for payment in bankruptcy proceedings before the High Court, claiming ownership over his company, Hong Kong Resorts.
HKR International chairman Cha Chi-ming took over the failed project.
Michael Ng, Hong Kong Standard
May 19, 2005
Better town planning, greater transparency make it unlikely land abuse will recur, says Tsang

The Discovery Bay project deviated from its original 1976 concept of a holiday resort and residential and commercial development to grow into a first-home community, without planning approval.STAFF PHOTO
Another Discovery Bay type fiasco - in which land designated for one purpose is used for another - is unlikely, given the increasing maturity and transparency in town planning, Chief Secretary for Administration Donald Tsang said Wednesday.
He was responding to a report by the Legislative Council Public Accounts Committee, which stated that the project had deviated from its original 1976 concept of a holiday resort and residential and commercial development to grow into a first-home community, without the approval of the then Executive Council.
"Whether the then land authority should have judged the changes of the development at Discovery Bay as representing a fundamental change from the original concept and submitted them to the then Executive Council for endorsement is a matter of interpretation,'' Tsang told Legco.
To remedy the matter, Tsang said the Housing, Planning and Lands Bureau had already sought Exco's endorsement for what had taken place in the Discovery Bay development.
"As our town-planning system has become mature, with a clear process for preparing statutory plans and channels for hearing public views, and as a system of enhanced accountability and transparency is now in place, it is unlikely that the experience of the Discovery Bay development will recur elsewhere,'' he said.
He noted that the Lands Department has already implemented active steps, as suggested by the Public Accounts Committee, to deal with the land encroachment problem.
According to the report, the Lands Department has not yet set up the boundaries of the Discovery Bay site, even though an adjoining 41,200 square meter government site has been occupied without authorization for more than 20 years.
This mistake, along with the unapproved amendment in the Discovery Bay development concept, has cost the government HK$160 million in lost potential revenue from uncharged land premiums, the audit commission report revealed last October.
But no penalties have been imposed on the developer, HKR International.
In January, former Chief Secretary for Administration Sir David Akers-Jones, who was also Secretary for the New Territories during the 1970s, revealed that the government of the day had allowed the developers to change the project's concept because it was concerned that the land could fall into the hands of a Moscow bank controlled by the former Soviet Union.
Singaporean businessman Edward Wong, the original landlord for the Discovery Bay development, had primarily intended to develop the area into a resort, with financing to be provided by several banks, including the Moscow Narodny Bank (MNB).
But when Wong went bankrupt in 1973, the Lantau project was put into liquidation and all local investors withdrew.
MNB, which had lent Wong HK$1.6 billion, sued him for payment in bankruptcy proceedings before the High Court, claiming ownership over his company, Hong Kong Resorts.
HKR International chairman Cha Chi-ming took over the failed project.