Page 113 of 136
2710
Page 113 of 136
192
HONG KONG URBAN COUNCIL
No. of Flats ('000s) Small (A) Small (B) Medium Large 87 820 130 56 Av rent per month $ 1,234 1,696 5,247 10,984 % of rent increase over 4th Quarter of 1978 40 24 36 47As an illustration on this acute rental situation, a household with monthly income of $3,000.00 (which is more than 62% of the households in Hong Kong) and renting a typical small flat type A, is spending 1234/3000=41% of their income on rent.
Also many tenants whose lease ran out in December 1979 were facing rental increases far beyond their ability to pay. Assuming that each of the unprotected (including 1,000-odd units under leases to the Government) 43,000 premises accommodates 6 persons, including tenants and sub-tenants, then no less than 258,000 persons were faced either with paying exorbitant high rent or eviction, under the circumstances only rent control could give immediate assistance to these tenants.
The 'small landlord' objections to rent control are mainly that (a) an increase of 21% or less for every 2 years on the existing rent is not sufficient to catch up with inflation and (b) that they cannot recover the premises for their own use or their family's use. As to the first argument the small landlords seem to have overlooked the fact that the property itself appreciates in value as time moves on. However, it is a valid argument that the rate of increase should be adjusted according to, for example, the increase in the wages indices instead of an arbitrary ‘21% or less'.
The 'hardship test'
In respect of the application of the 'hardship test' on all domestic premises, (i.e. where the Landlord seeks a court order to recover possession of the premises for his own use, or for the use of his parents or children over 18 years of age, he has to satisfy the court that taking into consideration the different needs of the landlord and the tenants greater hardship would not be caused by the court granting the order than refusing it.) including those leased on or after the 15 December 1973: It is only fair the courts be the final judge in deciding which party should enjoy the use of the property, rather than arbitrarily taking away from one of them (the landlord) the chance to provide housing for his own family. Also, the court's assessment of the landlord and/or tenants needs will keep up with the social and economic changes in the colony as well as the particular needs of the litigant's family.
Although it is well known that landlords seldom succeed on a hardship test, it is still important that this avenue is kept open for genuine cases to be heard in court.
The breathing space
HONG KONG URBAN COUNCIL
193
It is proposed that the period of control will last until the 18 of December 1981, thus providing a breathing space of 2 years during which the Government can plan ahead on land supply and private housing development. It is also reported on the press on the 15th of January 1980 that the Government will release on sale 10 times the land as it did in 1974, and at present, only 15% of the building land in Hong Kong is being made use of. That being the case it is not premature to suggest that in the conditions of sale the type and number of housing units to be built on a particular piece of land should be specified and be sold within a reasonable profit margin, so that the end products are fit for local consumption.
Mr. Chairman, on Monday the 14th I was asked by a member of the press, in good humour, as to whether there would be a walk out on the first day of the annual debate. To this I replied, 'it is not on the agenda.' And as it happened, there were fiery exchanges in the debate. Arising out of this, I think a few things must be clarified: I have not found it necessary or relevant to concern myself with the question of whether my ward clients are voters or not. Ward clients who are satisfied with my service after their visits are, in fact, never seen again.
Mr. MACKENZIE may well be right to say ward service enquiries may be dealt with by the relevant Government Departments and City District Offices. I trust we can say the same about our select committee work, that officers and consultants of the Urban Services Department can handle them all without difficulty.
Then why have Urban Councillors? They are to represent the Hong Kong community. How do you keep in touch with 'the community'? One of the ways is by giving ward services. We have seen how quickly the R & A select committee responded to a request made through ward service by a member of the public to showers and other facilities at Repulse Bay Beach. We had to give up waiting to be told the details of the Repulse Bay re-development plan by the Government because these facilities are 'badly needed.' I think the need to keep this communication channel open speaks for itself.
It is essential that a member of the public can go to an independent councillor when he queries the decision of Government Departments. The right to choose is entirely his and no one should take that right away from him.
Mr. Chairman, you have always encouraged young people in Hong Kong to participate in community and public service. Perhaps you will agree that whilst committee work is indispensable the experience of handling case work is also important. And through the case work in ward service a young councillor, whether appointed or elected, learns about the working process of other Government Departments. If you should confine her interest to...