Land Registrar's Statement

Financially the year was dramatic. It began with very strong performance across all areas of business. Business volumes then fell off a cliff in August and, after steadying for a while, declined sharply again in November. The Land Registry Trading Fund saw deficits for operations from December 2008 to February 2009. Not since February 1999 have we seen any monthly operating deficit. This was the first time ever that the Trading Fund has seen deficits for three consecutive months.

Against this background it is clear that the good overall financial performance recorded by the Trading Fund for the year was entirely due to the very strong performance at the beginning of the financial year.

Looking forward, the Land Registry will be faced with increased costs over the next several years as we introduce a new search system and as we gear up for the commencement of title registration. Pressure to increase fees and charges will be high and will increase if business conditions remain poor. But, we will not seek any increases this year. We will pursue efficiency gains wherever possible, consistent with our obligation to support the Government’s measures to sustain employment and with our commitment to sustain quality service. We will continue the programme for transferring services from our remaining offices in the New Territories where this is possible, so that staff can be freed for redeployment. But, we will ensure that effective means for residents in the New Territories to obtain services are maintained. We will also explore new approaches to subscriptions for services to make these more flexible for small businesses, to assist them in the current difficult conditions.

It is still hard to take a firm view of business conditions over the next few years even though there has been some recovery lately. Happily, we are able to sustain our capital investment programme despite the downturn. Given this, we will try to wait, before considering any increase in fees and charges, until the Land Titles (Amendment) Bill is enacted and there is a more stable business environment.

Last year I wrote of the concern being shown at the progress towards completing work on the Land Titles (Amendment) Bill. During the year we have worked persistently to try to resolve debate on the two main outstanding issues – whether there should be any modification to the conversion mechanism and to the rectification provisions – and to work through the implications for other legislation arising from the title registration system. I am pleased that the consultation carried out in the latter part of the year produced a clear cut outcome. Support was given to certain modifications to the conversion mechanism to resolve identified problems, provided that these were kept within the basic framework of the “Daylight Conversion” mechanism enacted in 2004. On the rectification provisions, similarly the preference was for limited changes within the original framework. This outcome should allow the drafting of the amendment bill to be finished more quickly. Subject to discussions with the Law Society of Hong Kong and other interested parties on the subsidiary legislation, it should be possible to bring the amendment bill to the Legislative Council by the end of 2010.

Last year I also announced plans to develop a new search system to address concerns that customers had raised over our existing system and to help with the transition to title registration. Progress over the year was not as rapid as I would have liked, but tenders for the new system were called and evaluation of bids had begun before the year end. I trust that well within next year we will see the system in operation. It is an important part of our commitment to continue to improve the quality and value of service that the Land Registry gives to Hong Kong.

At the heart of that service stand the staff of this Department. They have again given their best endeavours over the year to meeting the needs of every customer in a friendly, helpful and efficient manner. I would like to thank them and to thank everyone who has shared ideas or raised questions with us over the year, helping us to work together more effectively for the benefit of the community.



K. A. Salkeld, J.P.
The Land Registrar & General Manager
The Land Registry Trading Fund, Hong Kong
23 July 2009