Mass meeting
on Crown rents
Plans are afoot to convene a mass meeting of at least 100 civic, commercial and industrial bodies to persuade Government to change its announced policy on the renewal of Crown leases before the full impact of astronomical Crown rents hits the public in 1973.
The meeting is mooted by 27 principal industrial associations which last week submitted a strongly-worded memorandum to the Colonial Secretary reiterating the magnitude of the problem.
Some of the signatories to this joint memorandum are the Chinese Manufacturers' Association, Hongkong Spinners Association, Hongkong Garments Manufacturers Association, the Federation of Hongkong Garment Manufacturers, the three plastic manufacturers associations and many others.
A spokesman from the 27 industrial associations said the matter was being treated as one of extreme urgency.
"Time is running out on us,” he said, referring to the 49 Crown leases due for renewal and reassessment of Crown rents in a few months' time – a huge bloc of 4,000 lots in 1973 and another 470 lots of Government land between 1974 and 1976.
"We are also trying to present the full facts of the case before any decision is finally made, particularly with the possibility that UMELCO members are about to complete special report to the Government any moment now," he added.
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During the past few months, the Chinese Manufacturers' Association has drawn the Government's attention to its estimate that the policy of assessing Crown rents for Crown leases which expired, is unreasonable and unjust because of the heavy economic burden and inflation the public will have to bear.
At least one million people in Hongkong will be directly affected by these new Crown rents which are expected to spiral by a staggering figure of 10,000 to 100,000 per cent.
These 27 industrial associations are certain contrary to Government's contention that landlords have
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already increased rents to tenants to the limit the bad effects will definitely be passed down the line to the small man.
On the industrial sector, as outlined in the recent memorandum, this would cause inflation, increase production costs and wages adding more pressure to Hongkong's precarious position as an export- oriented economy.
In the long run, the high Crown rents will also put off industries from investing more capital in new machinery necessary to strengthen its position in competing with sophisticated counterparts in developed countries for markets.
The memorandum called on the Government to immediately set up a special commission to look into this problem.