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+HOWEVER, OUR AGREEMENT IS WITH THE EUROPEAN COMMUNITY. EVEN IF WE WERE TO SUCCEED IN CONVINCING HER MAJESTY'S GOVERNMENT IN LONDON THAT A REVIEW IS NECESSARY, THEY WOULD STILL HAVE TO CONVINCE THEIR FELLOW-MEMBERS OF THE COMMUNITY, + MR. JORDAN SAID.
+SO I THINK THE NEXT STEP IS FOR US TO ANALYSE THE IMPORT STATISTICS FOR THE WHOLE COMMUNITY.
+WHEN WE HAVE DONE THAT WE SHALL BE IN A POSITION TO DECIDE WHAT FORMAL REPRESENTATIONS SHOULD BE MADE,
HE ADDED.
RENT CONTROL DISCOURAGES PRODUCTION OF NEW HOUSING
*****
RENT CONTROL IS NOT A LONG-TERM SOLUTION TO HOUSING PROBLEMS BECAUSE IT DISCOURAGES THE PRODUCTION OF NEW HOUSING.
THIS WAS SAID IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY) BY THE SECRETARY FOR HOUSING, THE HON. DONALD LIAO, WHEN SPEAKING ON THE LANDLORD AND TENANT (CONSOLIDATION) (AMENDMENT) BILL 1979, AND REPLYING TO POINTS MADE EARLIER IN THE DEBATE BY REV. THE HON. PATRICK MCGOVERN.
+ALTHOUGH RENT CONTROL MAY ACT AS A TEMPORARY PALLIATIVE FOR SITTING TENANTS, IT HAS NEVER, EITHER HERE OR ELSEWHERE, PROVED SUCCESSFUL AS A LONG-TERM SOLUTION TO HOUSING PROBLEMS,+ MR. LIAO SAID.
+ON THE CONTRARY, THIS MEASURE OFTEN EXACERBATES HOUSING SHORTAGES BY DISCOURAGING NEW BUILDING AND REDUCING THE STOCK OF PROPERTY AVAILABLE FOR RENT.+
MR. LIAO SAID THE BEST WAY TO STABILISE RENT WAS TO MAKE A SUBSTANTIAL INCREASE IN THE SUPPLY OF HOUSING, AND THAT THE GOVERNMENT POLICY OF GRADUAL AND REGULATED DE-CONTROL OF RENTS, TOGETHER WITH THE EXCLUSION OF NEW PREMISES FROM CONTROL, HAD UNDOUBTEDLY DIRECTLY CONTRIBUTED TO THIS.
+THE RATING AND VALUATION PROPERTY REVIEW 1979 SHOWS THAT THE SUPPLY OF SMALL FLATS IS AT ITS HIGHEST EVER LEVEL, HE SAID.
THIS SHOWED THAT COMPLETIONS OF SMALL FLATS WERE ESTIMATED AT 27,470 THIS YEAR AND 28,450 NEXT YEAR, REPRESENTING 91 PER CENT OF OVERALL SUPPLY IN THE PRIVATE SECTOR FOR THOSE YEARS.
IN ADDITION, A RECORD TOTAL OF 70,000 PUBLIC HOUSING FLATS
WOULD BE BUILT IN THE SAME PERIOD.
TURNING TO MEDIUM-SIZED FLATS, MR. LIAO SAID THE SUPPLY LAST YEAR HAD IMPROVED CONSIDERABLY TO 1,430 UNITS, WITH COMPLETIONS FOR THIS YEAR AND NEXT LIKELY TO BE 1,160 AND 615 UNITS RESPECTIVELY.
+HOWEVER, HE SAID, THE SUPPLY PICTURE IN THIS CATEGORY COULD CHANGE SIGNIFICANTLY IF THE INITIATIVE TAKEN BY GOVERNMENT TO INCREASE THE SUPPLY OF LAND FOR MEDIUM AND LARGE FLATS, AS DESCRIBED BY THE DIRECTOR OF PUBLIC WORKS EARLIER THIS AFTERNOON, SHOWS ITS IMPACT.+
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