To maintain an amicable relationship with villagers and expedite works projects, the Government negotiates "Tun Fu" payments paid directly to village representatives or rural committee chairmen - not to project contractors, the Secretary for Housing, Planning & Lands told the Legislative Council.

In a written reply to a question from Albert Chan, Michael Suen said the discretionary Tun Fu fees have been paid since 1960, prior to Government projects construction work. Usually, the projects involved land acquisition and clearance that would have affected the concerned villages' fung shui.

Each case has to be considered on its own merits and particular circumstances, Mr Suen noted.

In fiscal year 2001-02, the Government paid $1.12 million for 29 claims involving 17 projects. In 2002-03, it paid $2.81 millon for 26 claims involving 13 projects. For the first half of the current fiscal year, it paid $1.41 million for nine claims involving six projects.

"Given that each case is considered on its own merits and involved negotiation with villagers concerned on their claims, the Administration is not in a position to disclose details of each claim," Mr Suen wrote.

All claims of Tun Fu fees must be justified, he added, and a list of itemised costs in respect of the Tun Fu ceremonies must be provided for consideration.

How Tun Fu payment claims are assessed

In determining Tun Fu payment levels, the Government takes into account:

*  the reasonableness of the claim, with reference to previous similar claims;

* the distance between the project site and the village or locality where the fung shui is alleged to be affected;

* the deity spots where the Tun Fu ceremonies are to be performed.

Adivce is also sought from relevant District Officers.

Relevant District Lands Officers approve payments for claims under $20,000. A Director of Lands must approve payments from $20,001 to $30,000. The Secretary for Financial Services & the Treasury must authorise all claims above $30,000.