3

subsidy should be reserved for

+

those who need it. It should

On the other

hand

the

neither be universal nor permanent. cutting down or withdrawing of subsidy should be based on factual evidence. The assumption that all ten-year tenants have reached the Subsidy Income Limit and would be required to pay double rent unless they can prove otherwise is wrong in principle, especially when the estimate that the actual number of tenants who exceed the limit is only 5% of the entire category.

I support the proposal contained in the report provided

that :

(1)

end of their tenth years

income, and

the

rent

the at All tenants

declare

household their increase is based on actual financial positions of

the tenants.

(2)

These

(3)

tenants'

affordability

be taken into

account, so that such tenants of newer estates the rent of which

was

fixed at

median rent-income

ratio of 10% or more would not encounter hardship as a result of this measure.

The choice must always be open to those tenants to move to units of lower rent.

Report of the Domestic Rent Policy Review Committee

Members of the ad hoc group as well as LegCo Members of the OMELCO Standing Panel on Housing have been amply briefed by the Administration. They have also individually and collectively

met with interest

following points :-

groups.

Opposition

centres

around the

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