Terms of construction contracts between the Housing Authority and the main contractor for the three construction sites re-entered by the authority cannot prevail over the law. The Housing Department said today that as creditors for the main contractor have petitioned for winding up the company, it is not possible for the authority to directly pay workers their overdue payment.

The department issued the statement in response to press enquiries on the outcome of a meeting today between the Permanent Secretary for Housing, Planning & Lands (Housing) Thomas Chan, Legislative Councillor Lee Cheuk-yan and a group of construction workers.

Although the terms of construction contracts between the authority and the main contractor provide for the authority to pay to the workers directly employed by the main contractor following verification by the Commissioner for Labour their overdue wages, any of these terms which contradict the insolvency law will be considered void by the courts as they are contrary to public policy.

Any actions taken by the authority should have a firm legal base and should not affect its interests.