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Three developments stand out from the past year; the enactment of the Land Titles Ordinance on 23 July 2004; the commencement of central registration and launch of IRIS (the integrated registration information system) on 12 February 2005; and the resurgence of activity in the property market. The latter buoyed the financial performance of the Trading Fund so much that the substantial cut in search and copying fees we made on 12th February had no real impact on revenue levels. The Registry ended the year in robust financial health and with the groundwork laid for improving the quality of services that we can give to Hong Kong for many years to come.
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| Title Registration |
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Speaking in the final debate on the Land Titles Bill on 7 July 2004, Ms Margaret Ng, Chairman of the Bills Committee said: "...the enactment of the Land Titles Bill only opens the gates to a new system, it is not yet the complete system itself...more hard work lies ahead". Introducing Title Registration you will find an account of the range of further work to be undertaken and how we have been getting on with it over the past year. I would like to thank all those from the Law Society, Bar Association, Hong Kong Association of Banks and other parties who are joined with us in the task of preparing to launch the new system.
It is already clear from the extent of the work required on further legislation, education and IT system development that the Ordinance cannot commence operation in 2006. During the current year we expect to complete drafting and consultation on the regulations and on any amendments needed to primary legislation. We also aim to complete the specifications for the IT system so that development work can start and to have made all preparations for the professional education and public information programme so that these can proceed in parallel with the scrutiny of regulations and the amendment bill by the Legislative Council.
I expect to be able to submit the regulations and amendment bill to the Legislative Council in the second half of 2006.
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| Central Registration and IRIS |
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The introduction of central registration marks the completion of a process to create a unified land registration service begun in the early 1980s. It was an essential precondition to the efficient introduction of title registration in the years ahead. The reorganization of the department and the introduction of IRIS to deliver electronic information services to the public and support our internal work gives us the ability to bring about steady improvements in service efficiency and quality.
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Both IRIS and the new organization structure were put to severe test in the first months of operation. The first days saw a number of disruptions to internet services, requiring quick response from staff to allay customer concerns and ensure that demands for information services were met. Business volumes also increased dramatically. Search requests increased by 40% within a couple of weeks of the launch of IRIS. Registration volume has increased from a daily average of about 2,500 to nearly 3,500. The system and the staff have coped well with this. Customer satisfaction has picked up steadily. During the current year we will be introducing several batches of enhancements to the system to address particular issues raised by users after the launch and to help us achieve efficiency gains. |
My objective is to ensure that over the medium term the additional manpower and costs for introducing title registration can be offset by increasing efficiency on the operation of deeds registration, allowing the transfer of resources to the new registration system.
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| Financial Performance |
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Revenue increased by nearly 20% compared with the previous year, rising to $435 million. This is the first year of increased revenue we have had since 1999/2000. During the year we obtained approval to reduce statutory fees for search and copying services to coincide with the introduction of central registration. Despite these fee reductions, which ranged from 16 to 36% of the old level, total income from these services was not reduced. In part this was due to increased demand due to activity in the property market. But, I have no doubt that the effect of reducing the cost of the service and making them more accessible to the public and smaller businesses through the IRIS internet service has helped as well to increase demand.
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I am particularly pleased that despite the depreciation cost for IRIS coming onto our books at the end of the year, overall operation costs were kept close to the previous year's level. The expenditure on preparing to launch title registration will be substantial over the next couple of years. We will need to exercise care in control of expenditure in other areas by continuing to improve efficiency if we are to be sure of keeping costs to customers steady. We cannot bank on increasing revenue from market activity.
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| Looking Ahead |
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The next five years will see more profound change for the Land Registry than at any time in its history. Previously we have dealt with substantial change to organization and to systems but the basic framework of legislation has remained the same since 1843. The advent of title registration changes the legal basis of our work and changes our responsibilities. Retraining of the entire department is needed, as will be further development of management and organization structure to handle the long term operation of the new system after the preparatory work is finished.
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At the same time, we need to respond to increased demands for greater use of IT to help the private sector carry out their business more efficiently, whether through better information services for estate agents, surveyors and general public, or through electronic lodgement and conveyancing for solicitors and banks.
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The immediate and predominant priority is getting ready for the commencement of title registration but planning for other improvements will proceed. Many of the new information services we are being asked for go beyond our own remit. We are, therefore, exploring partnerships with other departments and with private sector organizations as a way to deliver services that the public want while we focus on our core business and priorities. During the year we will be examining whether the scope of business specified for the Land Registry under the Trading Funds Ordinance should be amended to allow us to invest in joint ventures or other means to improve service delivery.
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Looking back on 2004/05 I can commend the men and women of the Land Registry for substantial accomplishments that have improved the service we give to Hong Kong. Looking forward, there is much more that we have to do together to accomplish what we have set out to achieve - giving Hong Kong registration services that are second to none in the efficiency and value that they give to society.
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K. A. Salkeld, J.P.
The Land Registrar & General Manager
The Land Registry Trading Fund, Hong Kong
13 September 2005
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