A proposed bill for development of the Northern Metropolis, which is currently under review by the legislature, will focus on streamlining planning and administration rather than investment incentives such as tax breaks, lawmakers overseeing it said on Monday.

Speaking at a news conference, members of the Legislative Council Bills Committee on the Northern Metropolis Development Bill also urged the government to prepare detailed explanatory documents once the bill is approved to help the public, overseas investors and prospective stakeholders understand its provisions.

First introduced to the Legislative Council on July 8, the bill will begin its second reading debate on Wednesday.

Committee chair, Priscilla Leung Mei-fun, announced the completion of clause-by-clause scrutiny of the bill. She stressed the historic significance of it as the first time that Hong Kong has initiated a dedicated piece of legislation for a single area.

The bill’s primary goal is to cut red tape so construction of the Northern Metropolis, a mega township project that will house one third of the city’s population once mature, can move forward at full speed. For this reason, the bill is confined to streamlining planning and land administration.

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Investment incentives such as tax breaks and measures for the low-altitude economy or other emerging industries linked to water and airspace, will not be included in the bill’s provisions, said Leung.

To ensure strict scrutiny, Leung said the committee held 12 meetings and spent about 30 hours discussing not only the main bill but also all five proposed subsidiary laws prepared by the government.

She said the committee has asked the government to submit comprehensive explanatory documents setting out how the dedicated legislation will fit in with other local laws, including the amended Inland Revenue Ordinance.

Leung said she hopes the document will be officially released when the proposed law takes effect, so it can address questions raised by the public, especially those from overseas investors and stakeholders looking to establish a presence in the new town.

She also called on various government departments, particularly those overseeing commerce and trade, banking, transportation, and innovation and technology to take part in the public explanation campaign.

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Committee member Carmen Kan Wai-mun said, in response to lawmakers’ questions, the government plans to create additional legislation covering information, innovation and technology, logistics and other areas in the new town. She added that she hopes the authorities will listen closely to industry views when drafting these new laws, and stressed the need to compile a preferential policy package for the Northern Metropolis that shows residents and potential investors what incentives are available for investing in the new town.

Another member of the committee, Hung Kam-in, said according to a document submitted by the government, apart from the dedicated law, the authorities plan to roll out more preferential policies to boost the town's progress, such as land premium concessions, tailored financing packages for incoming enterprises, and relaxed rules allowing insurance funds to invest in Northern Metropolis' infrastructure.

Contact the writer at amberwu@chinadailyhk.com