Reclamation: an urban development strategy under fire

Pergamon S 0 2 6 4 - 8 3 7 7 ( 9 6 ) 0 0 0 2 8 - 2

Land Use Policy, Vol. 14, No. 1, pp. 5-23, 1997 Copyright © 1996 Elsevier Science Ltd

Printed in Great Britain. All rights reserved 0264-8377/97 $17.0(I + 0.00

Reclamation: an urban development strategy under fire

Mee Kam Ng and Alison Cook

Hong Kong has a long history of creat- ing urban land by reclamation. The leasehold system, coupled with the pro- duction of new land, is a major source of government revenue. The executive-led government's objective of economic growth, rather than improving the overall quality of life, to a large degree explains the reclamation strategy. This objective and the means of achieving it, are now being challenged by a democratizing Hong Kong society. The current controversy about the central harbour reclamation is a reflection of this. The paper argues that further large scale harbour reclamation is not sustainable, and recommends that the government work together with its citizens on an integrated urban development strategy com- prising urban renewal and better planning of the New Territories in the regional context. Copyright © 1996 Elsevier Science Ltd.

Mee Kam Ng is with the Centre of Urban Planning and Environmental Management, The University of Hong Kong, Pokfulam Road, Hong Kong, Tel: (852) 2859-2276; fax: (852) 2559-0458; email: meekng@ hkucc.hku.hk). Alison Cook is with the Centre of Urban Planning and Environ- mental Management, The University of Hong Kong, Pokfulam Road, Hong Kong (Tel: (852) 2857-8646; Fax: (852) 2559- 0468; email: [email protected]).

This research was partly supported by the Urban and Environmental Studies Trust Fund, Centre of Urban Planning and Environmental Management, The Univer- sity of Hong Kong.

1 Public auction, public tender, and private treaty grants are the three basic methods

continued on page 6

Throughout its history, Hong Kong has expanded by extending its land mass through reclamation. The current reclamation programme in Victoria Harbour has, however, raised questions about the appropriateness and desirability of continuing this expansion strategy. Potential changes to the harbour and its foreshores are very substantial and have heightened public concern and stimulated much debate.

This paper argues that the political economy of Hong Kong explains why such a reclamation-based urban development strategy has been pursued. This strategy is reflected in the history of reclamation since the birth of Hong Kong as a British colony but it has recently come under fire. After an analysis of the current reclamation programme, debates on the schemes are examined. Finally, the sustainability of the reclamation-based urban development strategy is discussed and alternative courses of actions for the future are proposed.

The political economy of Hong Kong

The unbalanced tripartite power relationship between government, private sector interests and local communities provides the key to understanding the political economy of Hong Kong and why a reclamation-based urban development strategy has been used.

The dual-role of the government of Hong Kong The government of Hong Kong has a dual-role as the biggest landlord and as an administrator which determines the development agenda in the executive-led polity in the territory. All land is owned by the Crown. 1 While the introduction of direct elections to the Legislative Council (Legco) in 1991 has boosted its accountability to the general public, the highest policy making body, the Executive Council (Exco), is still appointed solely by the Governor.

Government has relied heavily on land sales as a major source of revenue. In the early 1980s, land-related revenue amounted to more than one third of the total revenue. Since 1985, land premium income has been

Reclamation under fire: M K Ng and A Cook

100% 90% 80% 70%

60%

50% 40%

30% 20% 10%

0%

l:li mB I i

I I m I

1970 1975 t980 1985 I

1990

m l i im

m

i Land Rent Lease Renewal

Lease Modification

Initial Lease

Figure 1. Composition of lease revenues of Hong Kong (1970-1990). Source: Based on figures in Hong, Y. H. The Transaction Cost of Land Contracting in Hong Kong, unpublished paper, p. 4.

continued from page 5 of disposal of Crown land. The first two methods are generally referred to as land sale in Hong Kong which is the sale of the land lease, not the land. The time period of the leases varies from 999, 99 to 75 years, and the lease can be renewable or nonrenewable.

split between the Hong Kong Government and the future Special Admin- istrative Region (SAR) Government. From May 27, 1985 to September 30, 1995, the SAR Government Land Trust had received HK$84080 (US$10780) million, some 11.5% of total government revenue (HK$729.7 (US$94) billion) collected over the same period (Hong Kong Government, 1996). Figure 1 shows that the majority of lease revenue comes from initial leases. Thus, government has a much greater stake in developing new land vis-h-vis existing leased land. There are two implications of these characteristics.

First, interdepartmental conflicts arise within the government, especially between those departments which favour 'efficient' and 'rational' land development to boost its coffers, and other departments (such as the Environmental Protection Department) which place more importance on quality of life issues in the development agenda. This vested interest of the government in land related development has led to the emphasis on 'economic space' rather than 'life space' in land use planning in Hong Kong. This is one factor that has prevented the formulation of a balanced and comprehensive development strategy for the territory as a whole. This is often overlooked as the government always claims that it is only practising a 'positive non-interventionist' policy in Hong Kong. Second, the government generates the majority of its land revenues from initial leases. In order to extract the maximum revenue from land development, the government has a greater interest in developing 'new' land so that new leases can be initiated. This explains why reclamation has been the dominant strategy to accommodate urban growth in the territory.

The private sector interests

The private sector interests have always played a very important role in the economic development of Hong Kong. To facilitate economic change, Hong Kong's urban fabric has historically undergone 'destructive creation and creative destruction'. Various private sector interests have worked closely with the biggest landlord, the government, in planning and development. Their close working relationship has been reflected by the composition of the Exco which comprises civil servants, representatives of the business and financial sectors, and professionals.

Government has increasingly fostered a closer relationship with land

2 From the 1991 to 1995, taxes from estate development, investment and finance, and banking constituted some 50 per cent of profit taxes collected by the Inland Revenue Department. 3 The first District Board election was held in 1982 which opened a new era of decentralized district administration to increase accountabil i ty of the administration to the general public. In 1985, the first indirect election for the Legislative Council was held. In 1991, 18 out of 60 seats in the Legislative Council were directly elected.


development related interests such as developers and bankers. In fact, the roles of these sectors have been further strengthened as the territory has undergone economic restructuring. 2

However, conflicts of interests do arise between the landlord and leaseholders as a result of government's 'land to the highest bidder' policy. For instance, when Hong Kong took off as a financial centre in the 1970s, land prices for commercial uses increased rapidly. In other words, the government obtained more revenue when land was sold and developed for commercial rather than industrial uses. This put the labour-intensive and low value-added manufacturing sectors in a very difficult position. High land prices together with rising labour costs eroded the competitiveness of local manufacturing industries in the world market. In the recent round of economic restructuring, the government would like to use newly reclaimed land to accommodate the expanding economic hub functions of Hong Kong. However, some development interests are concerned about the viability of large scale reclamation and its impacts on private redevelopment efforts.

Local communities

The close relationship between government and the private sector, and their power monopolies in determining the directions of development in the territory, have been fostered by the lack of democratic development in Hong Kong before the 1980s. In the 1950s, local communities were considered to be transitional residents in the colony. The refugees from communist China were politically apathetic. The refugee generation in the 'borrowed time and borrowed place' of Hong Kong had only one aim: improving their livelihoods. However, conditions changed over the years as the growing economy bred a new generation of Hong Kong residents. The new generation has received a western education and are more vocal and ready to stand up to protect their rights and those of the territory. Their appetite for political participation has been whetted by the democratiza- tion process in Hong Kong 3 and the politicization of various government policies such as the provision of housing and other welfare policies. This evolution has signficant implications on the tripartite relationship. The thriving civil society demands not only an active role in determining the development agenda but also the means of achieving various development objectives.

The imminent reversion to Chinese rule complicates the tripartite relationship in certain ways. Unlike the British Government, the Chinese Government seems to be more determined to oversee the development of Hong Kong as reflected in the controversies over the new airport and the container terminals (Ng, 1995, p. 232). The Chinese Government also seems to have greater interest in fostering good relationships with the business sector rather than promoting democratic development in the territory. In other words, the Chinese Government has a keen interest in preserving the status quo under the 'one country, two systems' concept.

After diagnosing the structural roots of the government-led reclamation- based urban development strategy, the following section provides a brief history of reclamation in the territory.

History of the reclamation-based urban development strategy The first century (1840s- l P40s ) : early reclamation in Victoria Harbour

The confining topography of the twin settlements on both sides of Victoria Harbour created serious constraints on urban expansion. Reclamation has


been used as a solution to accommodate urban growth since the birth of Hong Kong as a British Colony in the early 1840s. In a short span of twelve years (1843-1855) a series of reclamations amounting to some 7 acres (2.8 ha) had extended the land area in a piecemeal manner along the urban harbour front. This prompted Governor Bowring in 1855 to propose a scheme for introducing order to the alignment of the foreshore (Tregear and Berry, 1959, p. 8).

Uncoordinated reclamation continued and a further 8.5 acres (3.4 ha) were reclaimed bringing the foreshore to the location of the present Des Voeux Road. Despite the lack of planning the result was a fairly regular alignment by 1868.

Overcrowding very quickly became a pressing problem and in 1885 a Land Commission was set up to recommend measures to alleviate the congested living conditions. Its principal recommendation was land reclamation. The ensuing great Praya Reclamation of 1890-1904, of some 26 hectares, firmly established reclamation as a method of enabling urban expansion. Kowloon also followed a similar pattern of extension of the land area through reclamation. By 1924, about 500 hectares of land had been reclaimed. Reclamation continued to be the main means of accommodating urban growth until well after the Second World War (Figure 2).

1950s-1970s: urban decentralization and reclamation in the New Territories

Patrick Abercrombie was commissioned in 1947 to advise on planning and development in Hong Kong in the immediate post-war period. Abercrom- bie's report, published in 1948, outlined various physical planning proposals including the provision of a cross-harbour tunnel, reclamation, railways relocation, creation of industrial and residential zones and the likely eventual development of new towns in rural New Territories (Building and Lands Department, 1988, p. 12).

After a review of land requirements for industry and housing in the mid-1950s, the government started to investigate the possibilities of new town development (Building and Lands Department, 1988, p. 12). This decentralisation strategy was later guided by the Colony Outline Plan (1965-1970) (renamed the Hong Kong Outline Plan in 1973). At the same time, the government announced the Ten-Year Housing Programme which aimed at providing self-contained accommodation for 1.8 million people within a 10 years period. As developable land became increasingly scarce, development had to spread to the New Territories (Building and Lands Department, 1988, p. 10).

Major new towns such as the first generation industrial satellite towns at Kwun Tong and Tsuen Wan, and later Tuen Mun, Sha Tin, Tai Po and Tseung Kwan O are built primarily on reclaimed land (Figure 3). According to the Territorial Development Department, total reclamation for the various new towns exceeds 3000 hectares. This explains the steep increase of reclaimed land after 1976 (Figure 2). Today, the new towns house more than 2.5 million people.

1980s onwards: re-centralization and central harbour reclamation

When Hong Kong started to implement its new towns programme in 1976, its economy had undergone a restructuring process. The thriving economy pushed up labour costs which together with rising land costs eroded the competitiveness of the labour-intensive and low value-added industries in Hong Kong. The new towns were intended to provide more land at reasonable costs for manufacturing industries. However, before the new towns matured, the Open Policy adopted by China in the late 1970s, and


t ~

"6 t -

7000

6000

5000

4000 -

3000

2000

1000

1887 0 ~

2003

1976

1967

J

_.-.•-"41•'•-1924 1945

Figure 2, Total reclaimed land, Hong Kong.

Source: Lands Department, Survey and Mapping Office Series AR/9/RD (3rd ed.).

cheap land and labour resources across the border, resulted in a 'hollowing out' of manufacturing industry in Hong Kong.

The change to a service economy has strengthened the concentration of jobs in the urban core. This partly explains why the objectives of self- contained and balanced development of the new towns were not achieved. As a result, the government revised its urban development strategy with particular attention on how it could accommodate the changing needs of a restructuring economy. At the time, the current forecasts of the supply of land available in the New Territories indicated a fall from 655 hectares in 1983/84 to only 65 hectares in 1991/92. In other words, further growth of the population had to be accommodated elsewhere. It is against this background that the government undertook numerous planning studies which have culminated in the current controversial reclamation projects. Table 1 shows the most relevant studies.

The current reclamation programme

The magnitude of the current reclamation programme (existing/under construction, committed and proposed) can be seen from Figure 4. While existing and committed reclamation amounts to 543 hectares, the proposed reclamation after 1994 will eventually add a total of about 2300 hectares to Hong Kong, 1280 hectares of which will be in the metropolitan area. Reclamation in the past 150 years or so has added some 1300 hectares to the land mass around the central harbour. The current reclamation programme is therefore over a very short time span virtually doubling the encroachment on the original harbour.

To a large extent, the current reclamation programme has been necessi- tated by the expansion of port and airport infrastructure, themselves a manifestation of the key role of trade in the Hong Kong economy and a consequence of restructuring from a manufacturing to a tertiary economy heavily dependent on the import/export and finance sectors. Tables 2 and 3 show the scale of the different reclamation projects and their develop-

9

Reclamation under]ire: M K Ng and A Cook

Hong Kong Urban Development

Shenzhen Special Economic Zone

Chma

Fan Ling/ Sheung Shui

Tai Po

New Territories

Tuen Mun

Yuen Long

New Territories

Tsuen Wax

Hong Kong

Shatin

Existing

Lantau

Tung Chung New Town ,

I Urban Area

. . . . Railway

Main Road

- , ° - - Border

0 2 5km

Figure 3. Hong Kong urban development.

mental role. The more specific planned and proposed uses are indicated below.

Newly formed and committed reclamation

Of the newly formed and committed reclamation of West Kowloon and Hung Horn Bay on the Kowloon side of the harbour, and Central/Wan Chai and Aldrich Bay of the Hong Kong Island side, almost half the area is required for transport infrastructure. Given the decision to locate the new airport at Chek Lap Kok, rail and highway connections are required to link this to the central urban area. Provision of a new western rail line and harbour crossing will not only perform the function of providing good accessibility between the existing urban area and the airport and new town of Tung Chung on Lantau Island, but will also alleviate current congestion as the main mass transit railway (MTR) corridor of the Kowloon Penin-

10


Table 1. Studies related to harbour reclamation.

Studies Commencement date

1980 Territorial Development Study

CompleUon date

1984

Study on Harbour Phase I: 1981 Phase I: Feb. 1982 Reclamation and Phase I1: Feb, 1983 Phase I1: Nov. 1983 Urban Growth (SHRUG)

March 1988 December 1989 Port and Airport Development Strategy (PADS)

Metroplan May 1988 Mid-1990

Major recommendations related to reclamation

Strategic growth areas to house: - - West Kowloon reclamation

(90000 persons) - - Green Island reclamation

(200 000 persons) - - Wan Chai reclamation

(90000 persons) - - Hung Horn Bay

reclamation (17000 persons)

- - Central reclamation for office and cultural uses

- - expansion of the container port at Kwai Chung

Both reclamation and land made available through relocation of Kai Tak airport would predominantly be used for public housing purposes, and residential development would be through redevelopment Revenue from Central reclamation for Central Business District (CBD) expansion would be a major source of finance

The new Chek Lap Kok airport and the new town around it, Tung Chung would be built on reclaimed land. The West Kowloon and Central and Wanchai reclamations provide land for infrastructure network linking the airport to the main urban area and the CBD

Central harbour reclamations would provide solution space for redeveloping the dilapidated inner city areas

sula is already at capacity, and the cross harbour rail is approaching saturation level. The prime use of the West Kowloon reclamation is to provide land for both the rail and road connections and associated infrastructure. Transport infrastructure, both highway and railway, is also a major use on the Central/Wan Chai reclamation.

Proposed reclamation

For the longer term reclamation development schemes the land uses are more diverse and, although transport infrastructure is an important struc- turing element, a substantial amount of land is also earmarked for residential development and open space.

The central harbour reclamation controversy

By mid-1995 large scale reclamation in Victoria Harbour was highly visible to the public and it is partly the sheer scale of development that has led to questions about the need for, and desirability of, further reclamation.

11


I J

0 2 4

I I I

Tmmn ,Wel~

Container Terminal 9

Port Container ds, ship repairing )rage facilities

Container Terminal 8 Stonecutters Island

West Kowloon i K0wl0on Point

Green

6 km / ~ \~ / \

Figure 4. Reclamation in Victoria Harbour.

LEGEND

m Reclamation between 1842-1993 about 1200 ha,

~ 1 Existing and committed reclamation about 560 ha,

Proposed reclamation: Central Harbour 730 ha, Lantau Port t020 ha,

K o w l o o n

East Kow~

¸ r i

r- "un0"°mBay ' ~ - ~ , ~ ' ~ T.S.T. East '~ S " I

& Wanchai L ! J

Table 2. Existing, committed and proposed reclamation projects in the harbour area (ha).

Existing and committed reclamations Proposed reclamations

Hong Kong Island Central Phase 1 20 Central Phase 2 5 Wanchai Phase 1 7

Aldrich Bay 18 Belcher Bay* 10 Sub-total 60

Kowloon West Kowloon 340 Hung Hom Bay 35

Sub-total 375

Kwal Tslng/'rsuen Wan Container Terminal 8 Stonecutters Island (south shore) Sub-total 108

Airport Core Project Growth of CBD Extension of the Convention and Exhibition Centre Housing and GIC use For West Harbour Crossing

Central phase 3 Wanchai phase 2 Green Island

Lantau Port

Total 543

30 For CBD expansion and related infrastructure 48 Commercial and infrastructure development

176 Housing, GIC and link with the Lantau Port

Sub-total 254

Airport Core Project Southeast Kowioon 300 Residential and GIC KCRC freight Kowioon Point 48 Transport infrastructure and CBD expansion yard extension, commercial, residential and Tsim Sha Tsui East 6 Waterfront Park GIC uses

Subtotal 354

96 For container port expansion Tsuen Wan Bay 30 Solution space for redevelopment 12 People's Republic of China Naval Base Container Terminal 9* 99 For container port expansion

Sub-total 129

Lantau Port* 1 020 For container port expansion

Total 1 757

Source: *Information from PELB, The Shape of Things to Come. An Overview of the Role of Harbour Reclamation in the Future Development of Hong Kong, Hong Kong, Hinge Marketing Limited (1995), pp. 546, 77, 78; rest of the figures: Pryor, E. G., The provision of Land for Urban Growth in Hong Kong, unpublished monograph, pp. 14-16.

12


Source: Modified from PELB, The Shape of Things to Come. An Overview of the Role of Harbour Reclamation in the Future Develop- ment of Hong Kong, Hong Kong, Hinge Marketing Limited (1995) p. 125.

Table 3. Uses for newly formed and proposed harbour reclamation and associated areas.

Uses Ha %

Commercial 63 4.9 Residential 244 19.1 Comprehensive development areas 42 3.3 Government/institution/community 145 11.3 Industrial 66 5.2 Open space 314 24.7 Road and others 404 31.5

Total 1 278 100.0

Although government, as the proponent of the reclamation programme, has a consistent rationale for its implementation, other parties have voiced opposition and levelled criticism on a number of different grounds. The different strands of the debate are examined below.

The government of Hong Kong: the proponent of the reclamation projects

The government's arguments fall into two categories. It asserts that reclaimed land can provide the space needed for the expanding hub functions of Hong Kong in Pacific Asia. At the same time, as specified in Metroplan, new land around Victoria Harbour offers opportunities to improve the quality of life space for a thriving and demanding population.

To provide economic space. As stated explicitly in its objectives, the Terri- torial Development Strategy Review aims '[t]o enhance the role of Hong Kong as an international city and a regional centre for business, finance, information, tourism, entrep6t activities and manufacturing'. Accordingly, Hong Kong needs new land to expand its hub functions: an entrep6t port and a service centre for south China; an international centre for business and finance; a centre for professional and academic expertise; a city of culture; a base for high technology industry and research; a nodal point for regional communications and information dissemination; and a major tourist destination and conference (Planning, Environment and Lands Branch, 1995, p. 32). Tables 4 and 5 show the estimated land required to serve the various sectoral developments and port uses. These in turn will generate a need for additional transport infrastructure.

The government argues that central harbour reclamation, which provides a 'natural' extension of the existing urban areas, is a logical response to accommodate expanding urban growth (Planning, Environ- ment and'Lands Branch, 1995, p. 26). If land-based sources of fill are used for reclamation, the formed platforms on the 'borrow area' site can also provide valuable levelled land for development purposes. Given the high value of land in the territory, reclamation can yield a very high community benefit. The planners also suggest that the central harbour reclamation will provide timely opportunities for developers and architects to utilize their skills in enhancing the image of Hong Kong as a world city.

To improve life space. On the domestic front, the government argues that more land is required as it is projected that total population will grow by 1.2 to 1.7 million population over the next 15 years (Leung, 1996). Recla- mation projects are badly needed to house the anticipated increase of population. Government planners also argue that as the seabed is under public ownership, solution spaces can be quickly provided for rehousing people in congested and dilapidated residential environment in the city

13

Reclamation under fire." M K Ng and A Cook

Table 4. Estimated addlUonalland required for major uses (1994-2011)(gross ha).

Scenario Housing Offices Industry Total

A 580 54 260 893 B 850 66 572 1488

Note: Scenario A assumes that the primary economic hinterland of Hong Kong will be the Pearl River Delta. Scenario B, a higher growth scenario, assumes a wider economic hinterland encompassing Guangdong Province and other adjoining regions. Source: Modified from PELB, The Shape of Things to Come. An Overview of the Role of Harbour Reclamation in the Future Development of Hong Kong, Hong Kong, Hinge Marketing Limited (1995) p. 15.

core. Metroplan states that spreading development on to adjoining harbour reclamation and comprehensive urban renewal are the means of reducing population densities (Pryor, 1992, p. 4).

Harbour reclamation may also provide land for community facilities such as open space to serve congested urban areas. As the port is shifting westwards, the inner harbour can be used for amenity uses. Government has proposed well-designed landscaped promenades, up to 33 km in length on the central reclamation, which will 'bring the city to the harbour and the harbour to the city'. This will not only provide vitality and enhance tourism potential, but also improve the life space of the local community. Furthermore, reclamation will also play an environmental role in cleaning up black spots such as Kowloon Bay and Tseun Wan Bay which are seriously contaminated with industrial waste.

Arguments against the reclamation

The above arguments have not been well received by the private sector, the general public, including professional bodies, and the Chinese Govern- ment. The private sector is concerned that the 'landlord' is putting too much new land on the market. Many, especially those who have accumu- lated land banks in the New Territories and old urban areas, think that the centrally located reclaimed land will decrease the development value of their assets. The general public, especially 'green' groups and professional bodies, are concerned about the destruction the reclamation projects will bring to the beauty and ecology of Victoria Harbour. The Chinese Government, eager to exert an influence on major development straddling 1997, also queries the need for further reclamation. Obviously, expanding Hong Kong's economic space will have far reaching implications for urban development in southern China where large cities are also striving for world city status.

Arguments against the current reclamation programme can be broadly divided into two major types: those which focus on the impacts of the reclamation projects on the ecology and environment of Victoria Harbour;

Source: Modified from PELB, The Shape of Things to Come. An Overview of the Role of Harbour Reclamation in the Future Develop- ment of Hong Kong, Hong Kong, Hinge Marketing Limited (1995) p. 15.

Table 5. Forecasts of land for port facilities (ha).

1996 2001 2006 2011

Port facility Cumulative tools

Container terminals 15 29 39 42 323 533 653 789

Container terminals, off-port, back-up 162 258 319 395 Other port-related uses 70 243 293 373

Total area of land 555 1 034 1265 1 557

14


and those which question the government's commitment to the twin policies of harbour reclamation and urban renewal.

Impacts on the ecology and environment of Victoria Harbour. Many interest groups are concerned about the scale of proposed reclamation and its impacts on the environment. These parties are concerned that the magnifi- cent and internationally well-known Victoria Harbour, the natural heritage of Hong Kong (the 'fragrant harbour'), will disappear forever (Chu, 1995, p. 3; Hong Kong Institute of Planners, 1995; p. 4; Loh, 1996; Wang, 1995, p. 3). The Harbour will be turned into a river, if not a nullah, so they believe.

Environmental scientists argue that the decreased volume of water flow in Victoria Harbour will lower its self-cleansing ability (Wong, 1995, p. 1). The use of marine sand as the source of fill materials also causes concern. Dredging and dumping operations may adversely affect fishing areas and ecologically important habitats (Planning, Environment and Lands Branch, 1995; p. 28; Wong, 1995, p. 2). The amount of marine sand to be dredged between 1995 and 2000 is estimated at 260 million cubic metres (Wong, 1995, p. 2). In the course of dredging, heavy metals deposited deep in the seabed will be released again, thus polluting the Harbour area. This may cause irreversible damage to marine ecology. Furthermore, according to Friends of the Earth, approximately 200 million cubic metres of sand have already been extracted from the marine borrow areas of Hong Kong since 1992 (Hopkinson, 1995). Projects leading up to the year 2000 will require approximately 400 million cubic metres of fill materials.

Many 'green' groups and individuals have also objected to the Green Island Reclamation (Chu, 1995). Part of the reclamation will be a public waste dumping site for the construction industry. The World Wide Fund for Nature Hong Kong argues that Green Island 'is the latest and the last natural feature (having 150 plant species) in Victoria Harbour to be lost to major developments' (Chu, 1995).

People are also concerned that the function of Victoria Harbour as a vital city lung to improve ventilation and reduce air pollution for the population of Hong Kong will soon vanish through the expansion of the core urban areas and the consequent increase of related road traffic (Chu, 1995, p. 3; Barron, forthcoming; Loh, 1996).

As the central reclamation will further narrow Victoria Harbour, this will adversely affect the operating environment of the shipping industry. Funnel effects will result in stronger tidal currents and more choppy water. These will make shipping movements more dangerous and may cause more accidents in the increasingly busy Victoria Harbour (Chu, 1995, p. 3; Wang, 1995, p. 3). The closing of the Sulphur Channel between Green Island and Kennedy Town for a public waste dumping site for the construction industry is also criticized by mariners who argue that this will significantly increase the risk of collisions and endanger passengers' lives as ships' masters would no longer have a clear view of the southwestern approaches to the harbour (Wallis, 1996). When the government gazetted the Green Island dumping site project, Beijing expressed strong disap- proval of the move (Law and Yeung, 1995). In fact, the Chinese Govern- ment has called for a halt to all reclamation projects (Law, 1995).

Scepticism about the twin policies of harbour reclamation and urban renewal. Both the private sector interests and the general public are sceptical of the twin policies of reclamation and renewal. To them, accommodating economic and community needs in the reclaimed areas will counteract two

15


4On March 18, 1996, a record of HK$4.7 billion (US$607 million) was paid at public auction for a site of 1.5 hectares on the Hung Hom reclamation. This site is for commercial and residential development. 5The decision to amend the 16 OZPs was based on the recommendations of the Kowloon Density Study in 1993. One of the reasons is 'because of capacity constraints in both the strategic and local road networks'. Together with other planning considerations, it was recommended that restrictions on development in the Kowloon area should continue.

interrelated objectives of Metroplan: to 'thin out' the congested main urban areas, and to seek 'solution space' in the reclaimed areas for rehousing people to facilitate the tedious and time-consuming redevelopment process.

The Hong Kong Institute of Planners (HKIP) has argued that the central reclamations may exacerbate the mismatch of employment and population distribution (HKIP, 1995, p. 2). The West Kowloon Reclama- tion, Southeast Kowloon Reclamation, Green Island Reclamation and Central/Wanchai Reclamation will create opportunities for a further 317000 jobs (Wong, 1995, p. 2). As the main urban areas already contain 80 per cent of the jobs in the territory, further growth will enhance the economies of scale, making it even more difficult to decentralize private economic activities. Furthermore, this will aggravate traffic congestion in corridors linking the metropolitan areas and the new towns (Wong, 1995, p. 2). Residents in the main urban areas will be more reluctant to move to new towns.

Although government suggests that the reclaimed land will provide solution space for rehousing people, as argued by HKIP, new financial and institutional mechanisms proposed in various studies and development statements to facilitate urban renewal have still not been agreed. This is understandable as it has been estimated that the central reclamation will bring HK$300 (US$37.5) billion in revenue (Chu, 1995a, p. 9). In other words, land on the reclamation sites will be too expensive for rehousing poor tenants in the old urban areas. 4 In fact, there are worries that land designated for rehousing or community uses will eventually be sold for new private developments (Chu, 1995a, p. 3; HKIP, 1995, p. 2).

In addition, the supply of abundant reclaimed land will discourage redevelopment efforts by the private sector in the old and dilapidated urban core. The Hong Kong Institute of Architects (HKIA) claims that government has sacrificed private development rights by down zoning 16 out of 18 Outline Zoning Plans (OZPs) in Kowloon 5 to maximize land sales return on the reclamation (Fung, 1995, p. 2). The loss of development rights by these people is estimated to amount to HK$100 (US$12.8) billion (Fung, 1995, p. 4). The Hong Kong Institute of Surveyors (HKIS) also contends that the government has a hidden financial agenda in down zoning private land (Yip, 1995, p. 1). It estimates that after the removal of the existing international airport at Kai Tak, the site will bring HK$121 (US$15) billion revenue to the government (Yip, 1995, p. 1). HKIS maintains that the land leaseholders in Kowloon should not be penalized because of the limited traffic capacity on the Peninsula. Instead, the government should undertake positive measures to improve the transport infrastructure such as resuming land for multi-storey car parks and sites for loading and unloading (Yip, 1995, p. 2). In addition, it should provide additional public resources in improving existing old urban areas and should not avoid implementing the more tedious land resumption and negotiation processes with land leaseholders (Fung, 1995, p. 2; Loh, 1996).

Given the controversy on the central harbour reclamation, are there any feasible alternatives to accommodate future urban growth and development in Hong Kong?

Beyond harbour reclamation: are there feasible alternatives?

Realigning the power relationship

In March 1996, government announced that the release of the final report of the Territorial Development Strategy Review was delayed pending the

16


6 For instance, the Foreshore and Sea-bed (Reclamation) Ordinance only allows those having 'an interest, right or easement in or over the foreshore and seabed' to lodge an objection to the Director of Lands within two months after the plan is gazetted. Even owners of waterfront property cannot object.

completion of two further studies: a harbour-based strategy up to 2006, and a New Territories-based strategy (Wallis, 1996). While one can debate whether such a bifurcated approach is necessary or desirable, this action reflects the traditional style of the government in making plans: it decides the development agenda and the means of achieving it. However, such an approach is becoming unpopular and unacceptable in a community which has enjoyed increasing democracy over the past decade.

Not surprisingly, the Hong Kong public is asking for a say in determining the future of Hong Kong. As noted earlier, conflicts between the government and the general public (including the private sector) reflect the government's dual-role as Hong Kong's landlord, and as administrator in an executive-led polity which stresses economic efficiency rather than social equity and environmental sustainability. As illustrated above, government has utilized reclaimed land to accommodate urban growth in the territory throughout its history. Land sales are important sources of revenue to finance urban development. However, how sustainable will such an urban development strategy be in the long term? Not only will the natural topography impose physical limits to growth, but the increasingly sceptical and critical general public will no longer readily accept a reclamation-based strategy as the 'easy' way to accommodate and finance economic growth.

Opponents of reclamation have questioned how one values factors which do not readily fit into a financial balance sheet--the same types of issues which have been raised over heritage, loss of countryside, trees, etc. in other countries. Such issues were a driving force behind public participation in the planning process in these countries. Claims that the government had not consulted the public on its plans, culminating in the current reclamation, hinge on what is meant by 'consultation'. The government informed the public rather than consulted with them--as there were no channels for public input---either through representation at a political level (as Legco was at the time not elected) or directly. The lack of public participation in the plan-making process was raised in the Review of the Town Planning Ordinance in 1991 and one of the key recommendations of the review was for public consultation to be required in the plan-making process. A revised Town Planning Ordinance has not yet been introduced.

Perhaps it is now time for the government to seriously involve the general public in reconsidering its development agenda and the means of implementing it. Indeed, there is no shortage of intelligent ideas coming out of the community. The crucial question is how the existing planning and development decision-making processes and related legislation 6 can be restructured to enable different points of view to be identified so that a consensus may be reached before decisions are made. Meaningful participation and contribution requires general education of thc public in the field of planning and access to a reasonable amount of information. Unless the asymmetrical power relationship between the government and the general public can be redressed, it may be difficult to change the century- old urban development strategy.

What viable alternatives are available to accommodate urban growth and development?

Improving urban infrastructure and urban renewal

After the publication of the consultation document on 'Urban Renewal' in July 1995, government released an urban renewal policy statement in June 1996. The need for immediate and consolidated actions on urban renewal can be illustrated by a few figures. According to the policy statement, 80

17


hectares of the urban area with about 47000 units accommodating about 59000 households merit priority redevelopment (Planning, Environment and Lands Branch, 1996, p. 3). About 20 per cent (113000 units) of the domestic premises in the urban area are over 30 years old and many of these will approach the end of their useful life within a decade or so (Planning, Environment and Lands Branch, 1996, p. 13). Assuming the current rate of replacement continues, by the year 2005 more than 40 per cent (260000) of the domestic premises in the urban area will be over 30 years old. In West Kowloon, 74 per cent of the potential urban renewal sites of private properties will not be financially viable for redevelopment by market forces due to high costs of acquisition and rehousing (Planning Department, 1993, p. 66).

To tackle this immense problem, government has put forward an action plan. Short term measures include the allocation of two hectares of land for rehousing affected residents with a view to providing more in the future, and a pilot scheme to test the linkage concept, that is, linking non-profitable urban renewal projects to profitable ones to allow cross- subsidization. Long term measures include the upgrading of the Land Development Corporation into a statutory Urban Renewal Authority, establishing a rehabilitation fund for renovating buildings, and enacting legislation to enable majority owners to sell the entire site, despite objec- tions by minority owners.

Much, however, remains to be done to speed up the redevelopment of the rapidly decaying urban fabric. The details of the long term proposals will need at least another three or four years to finalize. On the other hand, the scope of the short term actions lack imagination and can hardly cope with the magnitude of the problem. Although government has always justified the need for reclamation to provide solution spaces for rehousing residents in old urban areas, in the policy statement, the opportunity to use nearby reclaimed land for rehousing is not even mentioned. While harbour reclamation aims to add 2300 hectares of land to metropolitan Hong Kong, only two hectares of land is offered to the Housing Society to build rehousing units.

In the debate on reclamation, government has been accused of being half-hearted in effectuating urban redevelopment. With a large supply of reclaimed land becoming available in the near future, resources-intensive and time-consuming urban redevelopment will be even less attractive to private developers. In fact, government will need to be more imaginative in facilitating redevelopment. Government should be more proactive in improving the carrying capacity of urban infrastructure so that the development potential of existing urban areas can be optimally utilized. With improved infrastructure, better zoning incentives such as increased plot ratios can be offered, to encourage private developers to speed up the redevelopment process.

Government should also consider the renewal of old, derelict industrial areas. With the restructuring of the economy, many of the old industrial sites offer windows of opportunity for community uses in the city core. Rezoning, or a more flexible and incentive oriented (e.g. in terms of premium charged) approach, may encourage private redevelopment in these areas (Hughes, unpublished).

New towns as part o f urban Hong Kong

A major weakness of new town development in Hong Kong is the lack of rail access to the central urban area. Those new towns not served by the Kowloon-Canton Railway (KCR), rather than being integrated with the

18

Reclamation under fire." M K Ng and A Cook

existing urban area, are separated in both space and time. This is in stark contrast to the case of Singapore where the new towns programme is planned on a linked system of centres by means of rail. Such a plan is difficult to implement in Hong Kong as long as the MTR operates on strict commercial principles. There will not be a sufficient population in the new towns to provide a profitable level of patronage until they are virtually fully developed. Meanwhile funds have been sunk into road infrastructure which is not required to be self-financing. The Airport Railway is the only rail which has broken this barrier and is being constructed before the patronage is established. For a long period the residents of the new towns of Tseung Kwan O in the southeast New Territories, and Tuen Mun and Tin Shui Wai in the northwest New Territories have suffered long, slow and unpredictable journeys to work. The new towns programme has been subjected to much criticism on account of the lack of job opportunities for residents and the reluctance of employers to establish businesses there. But without rapid transit connecting with the main urban area, and perhaps incentives for businesses to establish in new areas, there has been little to commend new towns to employers. Government needs to reconsider the links between the new towns and the main urban area so that new towns will be fully integrated into urban Hong Kong. In this regard, the planning of a mass transit link to Tseung Kwan O and a Western Corridor Railway to northwest New Territories is a step in the right direction.

Better planning for the New Territories

The problem of private ownership is not only encountered in the redevelopment of old urban areas but is also a major obstacle to development in the New Territories where government has to face leaseholders with vested interests. To pursue development in the New Territories is likely to be resource intensive and time-consuming. However, given the intensifying economic integration of Hong Kong and southern China and the presence of the city core of the Shenzhen Special Economic Zone immediately to the north of the New Territories, development pressures are enormous. As argued by Chu (Chu, 1995b, p. 9), most of the necessary infrastructure for development exists in the New Territories: water from China, telecommunications, and power and gas supplies. The main concerns are transport and sewerage. Yet the current planning of the New Territories makes efficient provision of this infrastructure impossible. Developable land is usually zoned for low density development. The consequent piecemeal development and urban sprawl represent a waste of valuable land resources.

A number of factors inhibit government from tackling the question of urban development in the rural New Territories, foremost among these being the generous village housing rights. It would also not be politically astute to embark upon a course which would be likely to cause antagonism and alienation of the government and people in the lead up to the change of sovereignty. Timing is a strong factor favouring reclamation for such discretionary land uses as housing, that is, uses for which the location is not tied to the central urban area by the needs of the port and airport development. However, if the policy of 'thinning out' in the metropolitan area is to be achieved, additional land for housing population growth will be required in the New Territories.

Hughes argues for a stronger planning and development framework in the New Territories (Hughes, unpublished), and the development of urban centres serviced by public transport infrastructure, such as the proposed

19

Reclamation under ]ire: M K Ng and A Cook

7Growth of the import/export sector has been on a strong upward trend, however, there are indications from the March quarter 1996 that activity in this sector is slowing. Although transshipment of goods into Hong Kong en route to destinations in China continues at previous levels, re-exports are decreasing as more goods are being shipped directly from China.

The astronomical rise of housing prices is a case in point. Private housing prices increased more than five fold in the decade between 1983 and 1993.

Western Corridor Railway. There is merit in this suggestion, if environmental factors are also carefully considered and taken into account. Better planning, improved infrastructure, and concentrated and contained urban development in the New Territories may improve the accessibility and utilization of resources including conservation of the countryside and provision of recreational opportunities. To facilitate the timely and orderly sequence of development, a land release programme related to the avail- ability of infrastructure, such as water and sewerage, and community facilities, as practised for the extension of urban areas in some other cities (e.g. Sydney) may be needed to regulate the conversion of land to more intensive uses.

The importance of regional planning

The objective of reinforcing the primacy of the central area has resulted in the focus of new urban development being strongly centred around the port and airport, both crucial elements in the growth of the Hong Kong economy. 7 Hong Kong's relationship with its hinterland has been that of a hub and 'gateway', apart from, rather than a part of, China. The Hong Kong/British Government had no mandate to plan the territory as part of China: policy decisions were of course confined to Hong Kong and made in the context of Hong Kong as a separate entity. Intergovernmental relations between the British and Chinese Governments were on a political and formal level with policy matters the responsibility of the British Government rather than the Hong Kong administration. Cross border cooperation has only been effective to a limited extent, such as in the supply of water and power.

This is now changing and more integration with the neighbouring provinces is likely to occur as Hong Kong becomes more closely integrated with its hinterland and more channels for communication open up. The TDS Review has started this step towards planning for Hong Kong in its regional context with an overview of development trends in the Pearl River Delta (Planning Department, 1995). Hong Kong will no doubt experience functional change as it adjusts to a new regional role which will bring a new and different development context.

Towards an integrated urban development strategy

Planning, developing, financing and managing urban growth are challenging tasks for all governments. This is especially true for Hong Kong in the transition of sovereignty from Britain to China. Strong reliance on one particular means of accommodating urban growth may not be healthy for a city. In order to restructure the urban fabric to accommodate changing needs of the economy and local communities, government should seriously consider other alternatives. To facilitate better informed debates and discussions by the Hong Kong people, the government might commission and make generally available a study on the financial implications of various ways of accommodating urban growth. On the other hand, the government should try to stop relying on land sales as a major source of revenue. This will only lead to high land prices which may only benefit certain land development related economic sectors to the detriment of others, s Increasing government revenue through other means needs serious and careful consideration.

Government should formulate an integrated urban development strategy outlining the relative roles of the different components discussed above. In theory, the Territorial Development Strategy Review should provide such a strategic framework. However, the focus of the government is on the

20


provision of infrastructure and the search for strategic growth sites, rather than the formulation of an integrated urban development strategy. If the above suggestions are incorporated into a comprehensive development strategy, then new towns and certain parts of the New Territories may become part of urban Hong Kong. This would have immense implications for the planning, development and implementation of various infrastructure and social amenities. For instance, the planning of the Western Corridor Railway may need rethinking to maximize its role in facilitating planned urban growth in northwest New Territories.

The Planning, Environment and Lands Branch is responsible for the planning of reclamation projects, the formulation of the policy statements on urban renewal and Metroplan. Metroplan proposes the use of reclaimed land near the city core as solution spaces for upgrading and renewing crowded urban areas. However, as revealed in the statement on urban renewal, no policy has been established to ensure that reclaimed land in the central harbour areas will be used for rehousing residents displaced by redevelopment projects in the city core. If government is committed to an integrated urban development strategy, this should not be overlooked.

Concluding remarks

The government's case for reclamation rests on two competing sets of demands. Land is required to provide infrastructure for enhancing the expanding hub functions in Hong Kong such as the port and airport and their transportation links with the main urban areas. 'Solution spaces' are needed to facilitate the upgrading of the unsuitable living environment of the older areas, and the provision of much-needed community facilities. From the government's point of view, these demands do not conflict with each other and both will be achieved once the reclamation projects are implemented.

It seems that all concerned parties do not object to the twin objectives stated by the government. However, they do disagree among themselves and with the government on the relative emphasis placed on these two objectives. Those who place more value on the intangible environmental quality of life issues question the need for so much reclamation and challenge the economic biased urban development strategy. Many others also raise pertinent questions: who or what is (should be?) the driving force behind development now underway in Victoria Harbour? What is the economic future of Hong Kong? Where is the city heading in terms of social, environmental, physical and spatial planning? Do we need all of the committed and proposed reclamation projects? Will the city expand beyond the current reclamation programme?

These questions, and differences of opinion among various parties in interpreting and answering them have fuelled the debates on the current reclamation programme. In retrospect, this is not the first time that a thoroughly studied and meticulously prepared plan has been heavily criticized by the general public and the Chinese Government after it is announced. PADS was, and remains, controversial (Ng, 1993a, p. 287; Ng, 1993b). The major reason lies in the lack of opportunities for ordinary citizens to be involved throughout the planning process. In other words, the assumptions, goals and objectives of these studies only represent the government's value judgements and preferences, which may or may not be shared by the general public. As argued elsewhere (Ng, 1995, p. 232),

21


9The independent legislator Christine Loh launched a private Protection of the Harbour Bill in November 1995. On April 13, 1996, she initiated a motion in Legco to urge the government 'to ensure that further development in the harbour be strictly limited and planned and carried out in an open and accountable manner' which was passed 31 to 0.

publicizing extracts of strategic studies is not genuine consultation. It only serves to propagate the government's value systems and methods of physical planning.

The current debate on the reclamation is politicized 9 but not necessarily informed. A way needs to be found for making informed decisions while .taking account of citizens' concerns. In the long run, the formulation and implementation of a viable, equitable and sustainable urban development strategy for Hong Kong will need the imagination, participation and commitment of its citizens. Government will need a mandate from the community.

References

Barron, W. Environment and the Political Economy of Hong Kong. In Managing the New Hong Kong Economy, ed. D. Mole, Oxford University Press, Hong Kong (forthcoming).

Building and Lands Department (1988) Town Planning in Hong Kong, pp. 10-12. Town Planning Office, Hong Kong.

Chu, W. K. S. (1995a) Cover story: should we stop reclaiming our harbour? The Bulletin, August 1995, p. 9.

Chu, W. K. S. (1995b) Direction of development--metro or new territories, paper presented at the Conference on Planning Hong Kong for the 21st Century, 12-13 April, 1995, p. 3.

Chu, K. W. H. (1995) Much to be achieved, Letters to the Editor, South China Morning Post, 20 August 1995.

Fung, F. C. K. (1995) Hong Kong Institute of Architects: position paper, paper presented at the conference on Planning Kowloon for the 21st Century, organized by the Society of Hong Kong Real Estate Administrators, 3 June 1995, Hong Kong, p. 2.

Hong Kong Government (1996) Hong Kong Year Book, Hong Kong. Hong Kong Institute of Planners (HKIP) (1995) HKIP: Concern over Harbour

Reclamation, Press Release by the Public Affairs Committee, HKIP, February 1995, pp. 2, 4.

Hopkinson, L. (1995) Government must be more accountable, South China Morning Post, 11 November 1995.

Hughes, K. Options for growth: alternatives to harbour reclamation, unpublished paper.

Law, C. and Yeung, C. (1995) Broken promise triggers row, South China Morning Post, 15 October 1995.

Law, C. K. (1995) Reclamation rules leave protesters stranded, South China Morning Post, 2 November 1995.

Leung, B. The case for reclamation, South China Morning Post, 13 March 1996. Ng, M. K. (1993a) Strategic planning in Hong Kong: lessons from TDS and PADS.

Town Planning Review 64, 287-311. Ng, M. K. (1993b) Port and Airport Development Strategy in Hong Kong,

American Institute of Planners Casebook. Ng, M. K. (1995) Urban and regional planning. In From Colony to SAR: Hong

Kong's Challenges Ahead, eds J. Y. S. Cheng, and S. Lo, Chinese University Press, Hong Kong.

Planning Department (1993) Technical Report Volume 1 of the West Kowloon Development Statement, pp, 65-66. Hong Kong Planning Department.

Planning Department (1995) A new development framework for Hong Kong, The Final Technical Report on the Territorial Development Strategy Review, Part One: General Overview, Hong Kong Government Printer.

Planning, Environment and Lands Branch (PELB) (1995) The Shape of Things to Come, an Overview of the Role of Harbour Reclamation in the Future Development ofHong Kong, pp. 26, 28, 32. Hinge Marketing Limited, Hong Kong.

Planning, Environment and Lands Branch (PELB) (1996) Urban Renewal in Hong Kong, p. 13. Hong Kong Government.

22


Pryor, E. G. (1992) Planning for High Concentration Development, 92 Regional Conference on High Concentration Development, jointly organized by the Hong Kong Institute of Planners and the University of Hong Kong, 7-9 December 1992, Hong Kong, p. 4.

Wallis, K. (1996) Delay for strategy rethink, South China Morning Post, 1 March 1996.

Wong, S. (1995) Reply letter from the Secretary of Planning, Environment and Lands, the government's response to HKIP's concern over harbour reclamation, 20 March 1995, p. 2.

Wong, Y. S. (1995) The impacts of the reclamation at Victoria Harbour on the environment, marine ecology and water flow, paper presented at a conference on Planning Kowloon in the 21st Century, organized by the Society of Hong Kong Real Estate Administrators, 3 June 1995, Hong Kong (in Chinese), pp. 1-3.

Yip, S. (1995) Hong Kong Institute of Surveyors: position paper, paper presented at the conference on Planning Kowloon for the 21st Century, organized by the Society of Hong Kong Real Estate Administrators, 3 June 1995, Hong Kong, p. 1.

23

Reclamation: an urban development strategy under fire

Documents

Transcript of Reclamation: an urban development strategy under fire