WEDNESDAY, DECEMBER 21, 1977
4
FATHER MCGOVERN WAS CONCERNED THAT STEP BY STEP RENT
CONTROL COULD BE REMOVED UNTIL THE ACTUAL RENT PAID WOULD BE THE SAME AS +THE SO-CALLED FAIR MARKET RENT.+
*WE WILL BE BACK TO THE INTOLERABLE SITUATION WHICH MADE RENT CONTROL NECESSARY - THE SURVIVAL OF THE RICHEST IN THE FREE-FOR-ALL WARFARE OF THE CONCRETE JUNGLE, BACKED, AS WAS THEN COMMONLY BELIEVED, BY GOVERNMENT BY THE RICH FOR THE RICH. +
EVEN IF THE 21 PER CENT CEILING REMAINS AT THE END OF THE PROCESS, HE ADDED, IT IS TOO HIGH FOR THE ORDINARY TENANT WHOSE REAL WAGES ARE NOT GOING UP TO THIS MUCH AND EVEN IF THEY ARE, THERE IS NO REASON WHY ALL THE INCREASE SHOULD GO INTO THE POCKET OF THE LAND- LORDS INSTEAD OF TO IMPROVING HIS STANDARD OF LIVING.
HE WARNED OF A +TEMPTING POSSIBILITY+ IF RENTS WERE TO CONTINUE TO RISE UNREASONABLY THE METHOD OF ASSESSMENT OF RATEABLE VALUES IS DERIVED FROM THE UNFAIR MARKET RENT. IF THAT UNFAIR MARKET RENT CONTINUES TO RISE, THEN ASSESSMENTS WILL NECESSARILY RISE. IT WOULD THEN BE POSSIBLE, WITHOUT CHANGING THE POUNDAGE, TO HAVE A TIDY RISE IN RATES WHICH WILL OF COURSE BE PASSED ON TO THE TENANT.
+ I MERELY MENTION THIS AS A POSSIBLE STRAW IN THE WIND WHICH MIGHT BLOW ON SOME UNWARY TENANT'S BACK, EVEN A TENANT IN PUBLIC HOUSING WHOSE ASSESSMENT IS BASED ON THE SAME UNFAIR MARKET RENT, HE SAID.
FATHER MCGOVERN SAID HE HEARD ONE OF THE REASONS FOR ALLOWING A MORE RAPID RISE IN RENTS WAS THAT IT WOULD ENCOURAGE MORE NEW STARTS IN PRIVATE HOUSING AND THUS REDRESS THE IMBALANCE OF SUPPLY AND DEMAND. +THE PRIVATE SECTOR NEEDS NO SUCH ENCOURAGEMENT. AS DEVELOPERS, LANDLORDS AND SPECULATORS KNOW, NEW RENTALS DO NOT COME UNDER THE PRESENT CONTROLS. THE ONLY ONES TO BENEFIT FROM THIS BILL WILL BE THOSE WHO HAVE ALREADY MADE THEIR PACKET, HE SAID.
THE HON. PETER C. WONG SPOKE IN SUPPORT OF THE BILL. HE SAID IT WAS GENERALLY ACCEPTED BY ECONOMISTS THAT RENT CONTROLS WERE TEMPORARY MEASURES AND SHOULD NOT BE USED TO RESTRICT RENTS AT ARTIFICIAL LEVELS PERMANENTLY. +SUCH MEASURES SHOULD BE RELAXED OR ABANDONED IN THE LIGHT OF CHANGING CIRCUMSTANCES.+
ON PRE-WAR PREMISES, MR. WONG SAID THE AVERAGE RENT NOW PAYABLE WAS ROUGHLY ONE-FIFTH OF THE FAIR MARKET RENT.
+ IN THE FACE OF RISING PRICES, IT IS DIFFICULT TO FIND JUSTIFICATION FOR CONTINUING INDEFINITELY, AT THE EXPENSE OF OWNERS, THE SUBSTANTIAL BENEFITS CONFERRED BY THIS ORDINANCE ON TENANTS OF PRE-WAR PREMISES.+
THE INCREASES INTRODUCED BY THE BILL WHICH HE CONSIDERED FAIR AND REASONABLE, MIGHT ALSO STRENGTHEN THE LANDLORDS'
INCENTIVE TO MAINTAIN THE IR PREMISES IN A PROPER STATE OF REPAIR, HE ADDED.
ON POST-WAR PREMISES, MR. LONG SAID THE CONTROL LEGISLATION HAS REMAINED IN FORCE WITH ONLY MINOR CHANGES SINCE THE END OF 1969.
/+UNDER