The Housing Authority has endorsed the return of the former North Point Estate site to the Government without compensation. Secretary for Transport & Housing Eva Cheng says the decision has been made in the public interest, taking into account the authority's financial position.

The waterfront site is 27,776 square metres and has been vacant for several years. Its full potential can only be realised through early redevelopment. Any prolonged idleness will waste land resources.

In making the decision, the authority has considered other options of financial or land compensation, but concluded they were neither appropriate or feasible in this case. For many years the authority has been returning unused sites to the Government without compensation.

Ms Cheng, who is also the authority's chairman, said the decision will not undermine the sustainability of the public rental housing programme, as it was the Government's long-standing commitment to offer the authority sufficient free land to build public rental housing for the needy, so as to maintain the average waiting time to three years.

Subsequent to the divestment of its retail and car-parking facilities in 2005 and the retention of the divestment proceeds amounting to $34 billion, the authority's financial position has improved substantially and should be sustainable in the medium term even without compensation.