Learn the Right Lessons from the To Kwa Wan Tragedy

Mark L. Clifford
Second Opinion 2010-02-04
Next Magazine

The Urban Renewal Authority wants to use the tragic To Kwa Wan building collapse to grab more power. But the URA and its big projects aren't the solution for Hong Kong's decaying buildings.

It's encouraging to see swift government action in the wake of the deadly To Kwa Wan building collapse. But Urban Renewal Authority Chairman Barry Cheung's use of the crisis to push the URA's misguided agenda needs to be looked at carefully.

The URA is supposed to develop run-down buildings and slum areas. The fact that we still have a serious problem with old buildings is a wake-up call to improve our laws-- and enforce the rules that are already on the books. It shouldn't be an excuse for a big-footed URA to get even bigger.Barry Cheung used the tragedy to warn that other buildings could collapse if swift action wasn't taken and lamented how long it took to push URA projects forward. It's understandable that Cheung wants to use the collapse to grab more power for the URA so that it can literally bulldoze through projects more quickly. But is the URA really in the business of improving Hong Kong's building stock? Or does the URA mostly serve as a back-handed way for developers to grab massive pieces of land that they wouldn't be able to get their hands on otherwise?

If the safety of Hong Kong's poorest is Cheung's concern, why does the URA keep grabbing land in up-and-coming neighborhoods? There is a nasty pattern where the URA seizes large plots of land that no private-sector developer would be able to get on its own in areas that are already primed for revitalization. That's because private developers need 80% of the residents to agree to a redevelopment buyout. The URA just relies on the state's power to confiscate property.The URA, which develops its plans secretly, then teams up with a private developer to do the project. On paper, this looks like a textbook example of a successful public-private project.

But the URA has a dubious record of success. One of its newest projects is the Masterpiece on Hanoi Road in Tsim Sha Tsui. This monstrosity carved up a low-rise neighborhood and built a skyscraper that quadrupled the old floor area. Many of the eyesore's 345 apartments' owners are apparently wealthy mainlanders looking to park some money in Hong Kong. This is what passes for neighborhood revitalization in Hong Kong?

It's hard to see how this is anything other than collusion between big property developers and the government. The developers get the government to do their bidding, helping assemble far larger plots of land than they would be able to do on their own. The redevelopment projects are large enough to make it worthwhile for the likes of Cheung Kong and New World. The government splits the profits, allowing the URA to boast about the cost-effective way it is helping people of Hong Kong.

So why is the URA grabbing land in up-and-coming neighborhoods? It's a lot easier to make money in Central and Wanchai than in genuinely poor neighborhoods. So we have the URA on the verge of destroying the Graham Street market, another bit of Hong Kong heritage that the private sector is managing quite well. And it is about to do the same thing in Stanton Street, undoing years of hard work by private owners who have invested their own money in fixing up buildings.

The problem of unsafe buildings is a serious one. The spectacular To Kwa Wan collapse is only the deadliest and most dramatic example of an ongoing problem that we've all known about. But the URA isn't the answer. The answer is to enforce the building regulations we have on the books. And, if we need to, improve legal sanctions. Secretary for Development Carrie Lam says she will introduce an amendment to the Buildings Ordinance to require inspection of older buildings. That legislation is long overdue.

Let's have one set of rules for everyone. Let's enforce them. Let's break the habit of thinking that the government- or the URA- can settle everything in sweetheart deals with big developers. Let's get the government out of the redevelopment business.

Mark L. Clifford has lived in Hong Kong since 1992.