Business conditions were challenging for the Land Registry Trading Fund during 2002/03. They are likely to remain difficult in the coming year. We are continuing with service development programmes. Passage of the Land Registration (Amendment) Ordinance was secured. The Land Titles Bill has been reintroduced into the Legislative Council and is subject to detailed scrutiny that is likely to continue through the coming year. The commitment of the members of the department to earn the trust of the community through high quality, high value service has been given recognition in the Civil Service Awards for Customer Service Excellence. We have identified areas for improved training and service provision so as to continue to raise the quality of our services in coming years.

Turnover fell by nearly 10% from the previous year. This reflected continuous weakness in the property market that was only partly offset by an increase in services to Government. Revenues have now come down by 40% compared with 1997/98. On the positive side, our expenditure has also been reduced substantially – by 26% compared with 1997/98. While this in part reflects increased productivity and a steady reduction in establishment, the major reason for reduced expenditure has been lower depreciation costs. These costs will increase in the coming year due to the investments we are now making in new technology and office refurbishment. We will have to rely more on increasing productivity and further streamlining of our organisation to ensure that our finances remain healthy if business volumes remain weak.

The investments that we are now making in new technology and accommodation are putting us in good position to improve both productivity and quality of service. Together they are enabling us to create an efficient, comprehensive registration service for the whole territory. These investments were made possible by the enactment of the Land Registration (Amendment) Ordinance in July 2002, which provides the legal framework for replacing the current nine separate registries with a single registry serving the whole of Hong Kong. The legislation will be brought into effect as soon as the Integrated Registration Information System (IRIS) is fully tested and ready for use. We expect this to be by January 2004.

Customer service centres will be maintained in most of the New Territories districts for the time being, but the separate New Territories registries will be closed. The staff, together with those from our branch office in Sai Wan Ho, will be transferred to our headquarters in Admiralty where they can be deployed most efficiently to meet registration and service delivery needs.

At present the registration process takes between two and three weeks. When our new system is introduced we expect immediately to be able to complete the process within one week and will aim to reduce the time further as we gain experience with the new technology. Our information services will also be provided over the Internet, making access easier and cheaper.

These service improvements lie ahead but the Land Registry was given recognition for what it has already done in the 2002 Civil Service wide Customer Service Excellence Awards scheme. The Improvement Award, Cost-effectiveness Award, Quality Award and Grand Prize in the small department category together say a great deal about my colleagues in this department. To follow up on this achievement, a detailed study of customer and staff perceptions has already been conducted to identify aspects of service, training, management and facilities that need to be addressed in order to further raise our standards in coming years.

The reintroduction of the Land Titles Bill in December 2002 and the commencement of deliberation by a Bills Committee in March 2003 has absorbed much of my time over the year. The conversion mechanism and the scope of the indemnity scheme clearly remain problematic and much detailed negotiation will be needed to bring the legislation through. While it will not bring immediate benefits and represents a heavy undertaking on top of managing the introduction of IRIS and our new organisation structure, it is fundamental to providing the ease, security and efficiency in dealing in land that is commensurate with Hong Kong's social and economic needs.

Looking back on the last year it has again been my pleasure to serve with all the staff of the Land Registry to give good service to Hong Kong. Looking forward, I am confident that we can achieve the best in all that we do to serve you.

K. A. Salkeld, J.P.
The Land Registrar & General Manager
The Land Registry Trading Fund, Hong Kong
16 September 2003