The Development Bureau and the Department of Justice will consider whether to lodge an appeal after studying the Court of First Instance’s judgment on a judicial review of the Small House Policy. 

Acting Chief Executive Matthew Cheung made the statement before attending the Executive Council meeting today.

The court ruled yesterday that the Free Building Licence arrangement under the policy, being a lawful traditional right and interest of the indigenous inhabitants of the New Territories within the meaning of Article 40 of the Basic Law, is lawful and constitutional.

However, it also ruled that the Private Treaty Grant and Land Exchange arrangements under the policy are unlawful.

Mr Cheung said: “The Development Bureau in concert with the Department of Justice will very carefully consider and examine the arguments, the reasoning in the court ruling as far as the 'ding' rights are concerned. 

“We will certainly make our decision clear later on, but in the meantime, we must have a little breathing space to study carefully the judgment itself before we come to a conclusion on the way forward.”