Urban Renewal Authority will be established next year. The government have recently suggested several compensation prospoals for land resumption. Yesterday she discussed with legislative members of the planning, land and engineering affairs panel. Regarding the method of calculating compensation for residential owners, the government is willing to allow the displaced residents to purchase a flat of seven years which size as big as the tore-down flat. The new compensation proposal is more beneficial to the displaced owners. Yet a majority of legislative councilors demanded the government to increase the level of monetary compensation.

Yu Chi Wan, a deputy secretary of planning and land bureau, briefed the legislative councilors on compensation proposals of urban renewal authoriy. He said that the government was intended to raise up the level of compensation for those who are adversely affected by urban renewal. The old compensation scheme only allows affected residential owners to purchase a flat of between eight and ten years, its location and size which are the same as the old one's. But the new compensation proposal suggested that the displaced owners could purchase a flat of 7 years which is located in the same district as the resumed one. Also, the affected owners can choose to buy a flat from the Housing Society with a preferential price.

Yet, several legislative councillors thought that the government should raise up the compensation; thus the affected residents can buy a flat of five years, its location and size which are the same as the old one's. Some legislative councilors suggested that the resumed flat could be exchanged for a new one which is supposed as good as the sandwich-class flat of the Housing Society. After the discussion yesterday, no agreement was made yet; and later a special meeting for further discussion in the Legislative council will be arranged.

The article is translated from the original one published in Hong Kong Economic Journal