WEDNESDAY, DECEMBER 21, 1977
5.
+UNDER EXISTING CIRCUMSTANCES, IT IS SOCIALLY AND ECONOMICALLY DESIRABLE TO FURTHER CLOSE THE GAP BETWEEN CONTROLLED AND OPEN MARKET RENTS.+ + THE PROPOSED INCREASES ARE IN NO WAY EXCESSIVE,+ HE SAID, +AND SHOULD NOT ENTAIL HARDSHIP ON THE PART OF THE TENANTS OR ADVERSE ECONOMIC CONSEQUENCES TO THE COMMUNITY.+
THE HON. OSWALD CHEUNG ALSO SPOKE BRIEFLY ON THE BILL, POINTING OUT THAT A PREPONDERANT MAJORITY OF THE UNOFFICIALS WELCOMED AND SUPPORTED IT: +AS THE SECRETARY FOR HOUSING HAS OBSERVED, THE INTERESTS OF LANDLORDS AND TENANTS ARE POLARISED, AND I SHALL SAY NO MORE THAN THAT THE PROPOSALS IN OUR VIEW STRIKE A SENSIBLE BALANCE,+ HE SAID.
IN REPLY TO POINTS RAISED BY FATHER MCGOVERN, THE SECRETARY FOR HOUSING, THE HON. ALAN SCOTT SAID IT WAS A CONFUSION OF THE ISSUES TO ALLEGE THAT PROPOSALS TO INCREASE CONTROLLED RENTS WOULD LEAD TO A GENERAL RISE IN MARKET LEVEL RENTS AND THEREBY PROVE INFLATIONARY.
+THIS IS SIMPLY NOT TRUE, CONTROLLED RENTS ARE BELOW MARKET LEVEL RENTS. THE PROPOSALS BEFORE MEMBERS COULD AT MOST MEAN AN INCREASE IN THE CONSUMER PRICE INDEX OF NOT MORE THAN HALF PER CENT FOR FAMILIES SPENDING UP TO $3,000 A MONTH, + MR. SCOTT SAID.
HE ALSO REFUTED THE SUGGESTION THAT THE AVERAGE FACTORY WORKER IS GOING TO BE SEVERELY AFFECTED BY THE PROPOSALS IN THE BILL.
MR. SCOTT POINTED OUT THAT OVER 44 PER CENT OF OUR POPULATION, WHICH MUST INCLUDE A VERY LARGE NUMBER OF FACTORY WORKERS, LIVE IN PUBLIC HOUSING ESTATES, THE RENTS OF WHICH ARE WELL BELOW THE AVERAGE LEVEL IN HONG KONG.
HE SAID THOSE RENTS WERE IN NO WAY AFFECTED BY THIS BILL AND THE AVERAGE TENANT IN HONG KONG PAID ABOUT 15 PER CENT OF HIS INCOME AS RENT.
MR. SCOTT SAID THERE WAS A FALLACY IN FATHER MCGOVERN'S REMARKS ON THE 21 PER CENT CEILING.
+THE FALLACY LIES IN THE ASSUMPTION THAT THE TENANT SPENDS THE WHOLE OF HIS INCOME ON RENT.
TAKING. HYPOTHETICAL EXAMPLE
+OF COURSE, HE DOES NOT. GIVEN BY THE REV. MCGOVERN, AND USING THE AVERAGE FIGURE OF 15 PER CENT OF INCOME GOING TO RENT WHICH MENTIONED EARLIER, OF THE INCREASE OF 21 PER CENT IN WAGES, THREE PER CENT WOULD GO IN RENT AND 18 PER CENT WOULD REMAIN AT THE DISPOSAL OF THE TENANT,+ HE SAID.
MR. SCOTT SAID THE GOVERNMENT HAD NEVER BELIEVED IN A COMPREHENSIVE AND TOTALLY RESTRICTIVE RENT CONTROL SYSTEM.
+RENT CONTROL IN HONG KONG IS INTENDED TO DEAL WITH RELATIVELY SHORT-TERM SITUATIONS ARISING FROM THE CYCLICAL NATURE OF BUILDING ACTIVITY, AND IS INTRODUCED WHEN HOUSING SUPPLY OSCILLATES FROM REASONABLE PLENTY TO INSUFFICIENCY.+
/HE NOTED