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Opinion | Troubled Leung government's land policy on shaky ground

Philip Bowring says C.Y. Leung's bad appointments and shattered credibility will make land-use proposals harder to pass, but tough and unpopular decisions will have to be taken

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Leung's appointments record and absence of leadership will make land-use decisions harder than ever to push through either the Legislative Council or broader opinion. Photo: Felix Wong

Land is the root of all evil - at least in Hong Kong. It had been hoped by many, myself included, that with his background in the property market as a surveyor, C.Y. Leung would be able to bring some coherence to land policy. Instead he brought into his government a clutch of individuals now known for property price boosterism and New Territories land speculation.

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Three officials - Barry Cheung Chun-yuen, Franklin Lam Fan-keung and Henry Ho Kin-chung - have now departed under clouds which cast serious doubt on Leung's judgment in appointing them in the first place. A fourth, the most important, Paul Chan Mo-po, hangs on despite overwhelming evidence of his lack of judgment. Impropriety and illegality are not the same. Chan's refusal to quit is having a negative impact on the administration and showing Leung to be incapable of leading. He should have sacked Chan immediately. Instead, he treats him like a protected species. Is he a member of the Party, or the Freemasons?

The damage to the government is immense because decisions about land are needed for the benefit of the community at large and must be explained coherently. Above all, the public must believe that decisions are being made in their interest, not those of vested interests, be they the Heung Yee Kuk, individuals in government, big developers or voters in districts.

Leung's appointments record and absence of leadership will make land-use decisions harder than ever to push through either the Legislative Council or broader opinion. Leung has even managed to offend the property tycoons for the wrong reason - the taxes on non-resident purchases, which treat a symptom, not a cause. His focus on more public housing, rather than making cheaper private housing cheaper, also increases the social divide and creates greater dependence.

Clearly Hong Kong needs more housing - though not as much as bloated population projections imply. Some land needs to be converted to residential use. So start with making more efficient use of what is already developed, or at least no longer rural.

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The most obvious case in point is the unsightly semi-urban sprawl in the New Territories, which is a very inefficient use of land and is largely the product of the grip the kuk has on the administration, blocking reform of the village house policy and encouraging both New Territories bigwigs, such as by Lau Wong-fat with his land parcels, and others, such as Chan and his family, to speculate on land-use prospects.

There are lesser issues, too, like conversion of old factories in residential areas. Of course there are infrastructure and transport issues to consider, but the main stumbling blocks are the government's reluctance either to take on vested interests or to see land prices fall.

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