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WEDNESDAY, JUNE 23, 1976

UNNECESSARY DISPUTE UNDER RENT AMENDMENT BILL WILL BE AVOIDED

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TWO UNOFFICIAL LEGISLATIVE COUNCILLORS HAVE CALLED FOR AMENDMENTS TO THE LANDLORD AND TENANT (CONSOLIDATION) (AMENDMENT) BILL 1976 TO AVOID DISPUTE ON THE ALLOWABLE RENT INCREASE FOR IM- PROVEMENTS TO THE PREMISES.

SPEAKING AT THE RESUMED DEBATE OF THE BILL TODAY, DR. THE HON. S.Y. CHUNG SAID: THE WORD IMPROVEMENT INCLUDES STRUCTURAL ALTERATIONS, EXTENSIONS OR ADDITIONS, AS WELL AS THE PROVISION OR REPLACEMENT OF FIXTURES AND FITTINGS, BUT IT DOES NOT INCLUDE DECORATIVE OR REPAIR WORK, + HE POINTED OUT.

+I THINK THIS DEFINITION OF IMPROVEMENT' IS RATHER AMBIGUOUS AND WILL CREATE UNNECESSARY ARGUMENTS BETWEEN LANDLORDS AND TENANTS.

+THIS IS BECAUSE ON THE ONE HAND, REPAIR WORK IS NOT CONSIDERED, AND RIGHTLY SO, AS IMPROVEMENT BUT, ON THE OTHER, REPLACEMENT OF FIXTURES AND FITTINGS IS INCLUDED AS IMPROVEMENT.

+ THEREFORE SUGGEST THAT AMENDMENT SHOULD BE MADE TO THE NEW SUB-SECTION 55A(6) SO THAT REPLACEMENT OF FIXTURES AND FITTINGS IS NOT INCLUDED IN THE DEFINITION OF IMPROVEMENT',+ HE SAID.

THE HON. OSWALD CHEUNG ALSO POINTED OUT THAT MOST LETTINGS IN HONG KONG WERE IN MULTI-STOREY BUILDINGS AND OPINION AMONG THE TENANTS COULD DIFFER AS TO WHAT WAS AND WHAT WAS NOT AN IMPROVEMENT.

+I PROPOSE THAT WHERE A MAJORITY OF TWO THIRDS OF THE TENANTS CONSENT TO THE MAKING OF IMPROVEMENTS, THEY SHOULD BE DEEMED TO BE NECESSARY,+ HE SAID.

+THIS, OF COURSE, WOULD NOT PRECLUDE ANY PARTICULAR TENANT TO DISPUTE THE AMOUNT OF RENT INCREASE PAYABLE, BUT IT WOULD PRECLUDE HIM FROM CONTESTING THAT IT WAS NECESSARY,+ HE ADDED.

IN REPLY, THE SECRETARY FOR HOUSING, THE HON. IAN LIGHTBODY CONFIRMED THAT HE WOULD MOVE AN AMENDMENT AT THE COMMITTEE STAGE OF THE BILL TO DELETE THE PROVISION FOR RENT INCREASES FOR REPLACING FIXTURES AND FITTINGS.

ANOTHER AMENDMENT WILL BE PROPOSED TO PROVIDE THAT AN IMPROVEMENT IS TO BE DEEMED NECESSARY IF TWO-THIRDS OF THE TENANTS HAVE GIVEN THEIR CONSENT IN WRITING TO ALLOW LANDLORDS TO AGGREGATE QUALIFYING EXPENDITURE OVER A PERIOD OF SIX MONTHS AND TO REQUIRE COPIES OF NOTICES IN ALL SUCH CASES TO BE SENT TO THE COMMISSIONER OF RATING AND VALUATION.

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