Artists concerned they may be squeezed out by developers

The government has pledged to study measures to improve its industrial building revitalization policy, so it can help arts groups continue operations.

Supported by Chan Yuen-han, the vice-chairperson of the Hong Kong Federation of Trade Unions, 22 arts groups met Secretary for Development Carrie Lam Cheng Yuet-ngor Monday to share theirs concern about the forthcoming industrial building revitalization policy. The arts groups asked that the government defer the policy, but officials gave no response.

The revitalization policy encourages landlords to turn old factory buildings into hotels or convert them for other purposes. Arts groups have grown increasingly concerned over the coming April 1 lowering of the threshold for developers to seek a compulsory sale of old buildings, a bill that will allow developers to demand the sale of an industrial building that is 30 years or older, once they have bought at least 80 percent of a given property (currently the threshold stands at 90 percent).

Arts groups are hoping to meet with the government and landlords before April to reach a solution. "We need to address the problem as soon as possible. We cannot wait until this unfortunate event occurs," Chan said.

Arts groups are proposing that the government regulate all industrial buildings and designate 20 percent of their space for the use of arts groups and independent artists, at affordable rents.

Officials are concerned that granting such request would create problems, given that private markets guide the revitalization process. Moreover, other sectors could question the government on such a decision and accuse it of favoring the arts industry.

Chan has urged the government to legislate affordable rents for registered arts groups, into its revitalization policy of old industrial buildings. "Other developed countries that value the arts have adopted similar policies," Chan reasoned.

The government acknowledges the challenges inherent in the arts industry and has offered help.

"I also suggest that the government establish an arts fund to subsidize operators from the arts industry, so that they can overcome hardship," said Chan.

"The arts groups support the industrial building revitalization policy. Because art is vital to a society, it makes sense for the policy to support the expansion of the arts industry," Chan noted.

"We understand that land is the most valuable asset in Hong Kong. However, land sales activities have suffocated the development of other industries, with the arts industry being the most hard-hit," commented Leung Po-shan, an independent artist present at the meeting.

Since Chief Executive Donald Tsang unveiled the idea of revitalizing old industrial buildings in his policy address of 2009, there have been rumors about landlords increasing rents or terminating leases with tenants. Many of the arts groups currently operating in old factory blocks are facing the threat of having their lease terminated.

An artist surnamed Leung, who took advantage of the relatively low rents in an industrial building to establish a drama workshop, now fears that the policy will encroach on his situation.

"If the government institutes no relevant measures to supplement the policy, I am afraid that we are going to see few arts groups surviving the financial pressures," Leung said.

(HK Edition 03/23/2010 page1)