WEDNESDAY, JULY 8, 1981
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+ALTHOUGH THE 30 PER CENT PROPOSAL IS SLIGHTLY BELOW THAT RECOMMENDED BY THE REVIEW COMMITTEE, IT IS STILL A DESIRABLE STEP IN RESTORING THE BALANCE OF INTERESTS BETWEEN LANDLORDS AND TENANTS.
+THE RAISING OF THE PERCENTAGE CEILING TO KEEP IN LINE WITH THE RATE OF INFLATION IN GENERAL WILL GIVE LANDLORDS AND POTENTIAL LANDLORDS A FAIR DEAL AND SUBSEQUENTLY ENCOURAGE THEM TO LET THE IR FLATS OUT.+
HE ALSO CONSIDERED THE PROPOSED EXCLUSION OF LUXURY PREMISES FROM RENT CONTROLS IN TWO STAGES SHOULD PROVIDE SUFFICIENT TIME FOR THOSE AFFECTED TO MAKE THE NECESSARY ADJUSTMENTS.
AS TO THE REPOSSESSION OF RENTED ACCOMMODATION BY LANDLORDS, MR CHEN URGED THE GOVERNMENT TO PUT THE REVIEW COMMITTEE'S RECOMMENDATION INTO LEGISLATIVE EFFECT AS SOON AS POSSIBLE AND TO EXTEND IT TO THE PUBLIC HOUSING SECTOR +SO THAT THOSE WELL-OFF TENANTS WHO CAN AFFORD TO OWN PRIVATE ACCOMMODATION CAN BE REQUIRED TO VACATE THE IR UNITS AND TO RELEASE THEM TO MORE NEEDY TENANTS.+
THE HON WONG LAM SUPPORTED THE GOVERNMENT'S PROPOSAL TO EXEMPT FROM RENT CONTROL HOUSES FOR WHICH OCCUPATION PERMITS ARE GRANTED ON OR AFTER JUNE 19, 1981.
HE SAID THIS WOULD STIMULATE DEVELOPERS TO BUILD MORE AND ALLOW LANDLORDS TO LET OUT THEIR HOLDINGS WITHOUT WORRY.
HOWEVER, AS TO GOVERNMENT'S PROPOSAL TO RAISE THE RATE OF INCREASE FROM 21 PER CENT TO 30 PER CENT EVERY TWO YEARS, MR WONG SAID HE WAS AT A LOSS TO UNDERSTAND HOW GOVERNMENT ARRIVED AT THIS NEW PERCENTAGE.
HE SUGGESTED THAT THE PERMITTED PERCENTAGE SHOULD BE ARRIVED AT BY A MORE SYSTEMATIC METHOD OF CALCULATION AND THAT THIS PERCENTAGE SHOULD BE REVISED UPWARDS OR DOWNWARDS WHERE APPROPRIATE AT PROPER INTERVALS.
ON THE EXEMPTION FROM CONTROL OF PREMISES WITH TOP RATEABLE VALUES, MR WONG SAID THAT MOST OF THE TENANTS, OR THEIR EMPLOYERS, SHOULD BE ABLE TO TAKE SUBSTANTIAL RENT INCREASES IN STRIDE.
+ IT WOULD NOT BE TOO DIFFICULT FOR THEM, SHOULD THEY BE UNWILLING TO GO ON PAYING EXORBITANT RENTS, TO FIND SMALLER ALTERNATIVE ACCOMMODATION, HE SAID.
EARLIER, MR WONG SAID THAT IN THE PRESENT CIRCUMSTANCES OF HONG KONG, A COMPLETE ABANDONMENT OF RENT CONTROL COULD VERY POSSIBLY LEAD TO VIOLENT FLUCTUATIONS IN RENTS AND EVICTIONS WHICH WOULD PRECIPITATE SOCIAL UNREST AND WAS THUS EXTREMELY UNDESIRABLE.
• IN SPITE OF SOME ADVOCATES OF DOING AWAY WITH ALL RENT CONTROL IMMEDIATELY ON THE GROUND OF FREE ECONOMY, I STILL THINK IT IS WISE TO MAINTAIN THE RENT CONTROL UNTIL THE END OF 1981,+ HE ADDED.
/DR HO KAN-FAI