WEDNESDAY, MAY 28, 1980
5
+A RATE OF INTEREST IN EXCESS OF 60 PER CENT PER ANNUM IS CONSIDERED WHOLLY UNACCEPTABLE AND HENCE THAT IS THE RATE CHOSEN ABOVE WHICH THE MORE STRINGENT SANCTIONS IN RESPECT OF SUCH TRANSACTIONS WILL APPLY, HE SAID.
HOWEVER, HE NOTED THAT THESE RATES MAY BE ALTERED BY RESOLUTION OF THE LEGISLATIVE COUNCIL JE FINANCIAL CIRCUMSTANCES WERE TO CHANGE OR THE RATES SHOULD APPEAR NO LONGER APPROPRIATE FOR ANY OTHER REASON.
THE ATTORNEY GENERAL ALSO OUTLINED IN DETAIL PROVISIONS IN THE BILL REGARDING THE LICENSING OF MONEY LENDERS, REQUIREMENT FOR SUPPLY OF INFORMATION BY MONEY LENDERS AND ARRANGEMENTS FOR EARLY PAYMENT OF THE OUTSTANDING BALANCE OF THE LOAN BY THE BORROWER.
TURNING TO THE PENALTIES PROPOSED TO BE IMPOSED FOR CONTRAVENTION OF THE PROVISIONS, MR GRIFFITHS SAID THE MAXIMUM PENALTY IS A FINE OF $100 000 AND IMPRISONMENT FOR TWO YEARS.
+THE PROVISIONS WILL ONLY BE EFFECTIVE IN COMBATING LOAN- SHARKING IF ADEQUATE PENALTIES ARE IMPOSED FOR CONTRAVENTION OF THÊM HE SAID.
HIGHER RENT INCREASES FOR PREWAR PREMISES ALLOWED
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THE LEGISLATIVE COUNCIL TODAY APPROVED A MOTION TO RAISE THE CEILING OF PERMITTED RENT INCREASES IN PREWAR PREMISES PROVIDED THAT THE PERMITTED RENT DID NOT EXCEED THE FAIR MARKET RENT.
FOR PREWAR DOMESTIC PREMISES, THE CEILING IS RAISED FROM FOUR TIMES TO SIX TIMES THE STANDARD RENT (I.E. THE RENT PASSING IN 1941) AND FOR NON-DOMESTIC PREMISES, THE CEILING IS RAISED FROM EIGHT TIMES TO 12 TIMES THE STANDARD RENT.
LANDLORDS ARE REQUIRED TO SERVE ONE MONTH'S NOTICE OF THE INCREASED RENTS TO THE IR TENANTS.
MOVING THE MOTION IN THE LEGISLATIVE COUNCIL TODAY THE SECRETARY FOR HOUSING, THE HON DONALD LIAO SAID THERE WERE ABOUT 12 000 UNITS IN PREWAR BUILDINGS, 60 PER CENT (OR 7 100 UNITS) OF WHICH WERE EFFECTIVELY SUBJECT TO THE PART I CONTROLS PROVIDED IN THE LANDLORD AND TENANT (CONSOLIDATION) ORDINANCE.
THE BALANCE (4 900 UNITS) IS EITHER OCCUPIED BY OWNERS, SPECIFICALLY EXCLUDED FROM CONTROLS OR LET AT RENTS AT OR APPROACHING THE MARKET LEVELS.
MR LIAO SAID DESPITE ANNUAL INCREASES SINCE 1976, AVERAGE PERMITTED RENTS OF PREMISES SUBJECT TO PART I CONTROLS STILL STOOD AT ABOUT 15 TO 20 PER CENT OF FAIR MARKET RENTS.
*THIS IS DUE TO THE VERY LOW BASE ON WHICH RENT INCREASES ARE CALCULATED AND TO INCREASED MARKET RENTAL LEVELS OVER THE PAST TWO YEARS. UNLESS FURTHER INCREASES ARE ALLOWED, THE GAP BETWEEN EXISTING RENTS AND MARKET RENTS IS NOT LIKELY TO BE REDUCED, HE SAID,
/ABOUT 4 900