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Wednesday, May 10, 1972
The payment would be unpopular with lessees and they had nothing
to lose in pressing their objections on any grounds and through any
channel, he added.
"But this does not mean that those objections are necessarily
or all justified," he said.
Sir Hugh pointed out that leaseholders whose leases were nearing
the expiry date had enjoyed those leases for a great number of years and
had profited from them.
At the same time, the value of land had grown over the years
as a result of the efforts of all those who had contributed to Hong Kong's
increased prosperity, he said.
Only Reasonable
"In these circumstances it is only reasonable to insist that
leaseholders should pay a part of the increased value for the benefit of
renewal of their leases for a further term," Sir Hugh said.
There might be disagreement about the proportion they had to pay
but there could be none on the principle that they should pay, he stressed.
Government was satisfied on the question of principle and moreover
that it was legally entitled to charge a renewal rent calculated by the
present method.
**The question now before us is whether it is reasonable to exercise
this right to the extent to which it is now being exercised; whether
increases of this order can be absorbed in a single jump; and whether the
general level is too high.
These