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Monday, June 25, 1973
"Even if there is some small reduction in premises for rental, this
may be no bad thing as owner-occupation is the one guarantee against
Increased rents."
Mr. Fry also questioned the validity of arguments that large flats
and premises let on three-year leases should continue to be excluded from
the new controls.
Tenants of these types of accommodation, he said, had been the hardest
hit over the past year or so and it was rente for these properties
which were quoted outside Hong Kong and gave a generally bad impression of
housing here.
While there may be no good reason to subsidise people occupying
expensive accommodation, I do think they, like all other domestic tenants, should
be protected against extortionate demands at a time when landlords are able
to tako unfair advantage of the imbalance between supply and demand," he said.
"Why, in a situation such as this, should landlords of the more
expensive type of accommodation be allowed to take advantage of high rents, while landlords of smaller domestic premises are restricted?" he asked.
It was because of this, he explained, the government believed that
controls on rent increases must apply to all.
Referring to the concern felt by landlords of controlled premises
about the large gap between controlled and free rents, Mr. Fry emphasised that the government did not consider these free rents as being fair or reasonable.
They were the result of an "abnormal situation," he said, and
although the machinery to reduce them could not be provided it was felt that they would come down by market forces as supply improved.
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