The Housing Department has pledged to do all it can to help displaced tenants affected by the scheduled clearance of Tai Wo Hau Factory Estate in October to re-establish their businesses.

Deputy Director of Housing Lau Kai-hung issued the pledge after meeting with tenants' representatives and lawmaker Lee Wing-tat today.

Another restricted tender exercise will be conducted next month for vacancies in the Housing Authority's factory estates where 1,050 square metres are currently available. Rating & Valuation Department records also shows there is about 1.3 million square metres factory space vacant in the private sector.

Allowances sufficient

Mr Lau said the levels of ex-gratia allowances at $2,717 to $5,070 per square metre amounting to $56,000 to $1.7 million payable to the affected tenants are sufficient.

"The ex-gratia allowances granted were intended to reflect the benefits attached to the tenancies, which vary depending on the date the tenancy was acquired and the means of acquisition," he said.

Both the tenancy agreement and the Housing Ordinance entitled the authority to terminate factory tenancies on giving three months or less notice.

Responsible landlord

"Although displaced tenants are not legally or contractually entitled to any form of compensation, as a responsible and reasonable landlord the authority offered ex-gratia allowances to assist their relocation," he added.

It is the authority's established practice to give an 18-month notice to vacate and to suspend rent increases from the date of announcement, Mr Lau said.

An advance payment of 70% of the proposed ex-gratia allowances will be paid on approval, with the balance to be paid upon clearance of rent arrears and delivery of vacant possession.