25
Wednesday, May 10, 1972
The Financial Secretary pointed out that there were four salient
points to bear in mind as rogards the main groups concerned, namely,
industrial tenants, domestic tenants, owner-occupiers and owners.
Tenants, both industrial and domestic, where not benefitting
from controlled rents would pay the same market ronts to their landlords
irrespective of what their landlords had to pay by way of renewal of
Crown rents, he said.
Less than 200 industrial properties were being affected by the
renewals scheduled for 1973 and therefore he found it impossible to foresee
the widespread repercussions on the industrial economy predicted by so
many commentators even if rents for the factories in those properties
could rise above market levels.
Occupiers
Owner occupiers, like other lease owners, could renew at a rent
that need never be more than one third of the market rent of the flat or
factory. In many instances, where fully developed property was concerned
it would be as low as one fifth or one sixth of the rent that the flat or
factory would command in the market.
On renewal owners were being granted a further period during which
they would have the exclusive use of the lots they occupied and it was only
reasonable that they should pay for the privilege, the Financial Secretary said,
Furthermore, under the existing policy they were in a far better
financial position than owners of non-renewable leases, or purchasers of
Crown land at auctions, he added.
/The