WEDNESDAY, JULY 8, 1981
LIN
5
HE SAID THAT WHILE RESPECTING THE FINDINGS OF THE REVIEW COMMITTEE, IT WAS NOT NECESSARY AT THIS POINT IN TIME TO AMEND THE CURRENT LEGISLATION.
MR LEE RECALLED THAT WHEN THE EXISTING LEGISLATION ON RENT CONTROL WAS INTRODUCED, THE BOSSES OF THE LAND DEVELOPING COMPANIES SWAMPED THE UMELCO OFFICE AND GAVE VARIOUS JUSTIFICATIONS WHY RENT CONTROL SHOULD NOT BE INTRODUCED.
HOWEVER, AFTER THE LEGISLATION CAME INTO EFFECT AND DURING 1980, ALL THE LAND DEVELOPING COMPANIES RECORDED THE IR HIGHEST PROFITS IN HISTORY AND THEIR STOCKS SOARED TO AN ALL TIME HIGH RECENTLY IN THE HONG KONG STOCK EXCHANGE.
+WHAT A STRANGE PHENOMENON, WHO IS BEING HURT BY RENT CONTROL?+ HE ASKED.
MR LEE NOTED THAT AT THE CURRENT MARKET VALUE AND INTEREST RATE, PEOPLE EARNING AN INCOME OF $10 000 PER MONTH WOULD HAVE A HARD TIME PAYING FOR THE DOWN PAYMENT.
THEY THEREFORE HAVE TO RENT A PLACE TO LIVE, HE SAID.
+WHAT IS WRONG WITH THE CURRENT RENT CONTROL SCHEME? WHY RAISE THE MAXIMUM ALLOWABLE INCREASE FROM 21 PER CENT TO 30 PER CENT BIENNALLY?
+ IS GOVERNMENT PROJECTING THE INFLATION RATE FOR THE NEXT TWO YEARS AT 14 PER CENT PER ANNUM?
+SINCE LANDLORDS CAN ASK FOR THE FAIR MARKET RENT IN THE FIRST LETTING, WHY ARE THERE SO MANY EMPTY FLATS IN THE PRIVATE SECTOR?+
HE CONCLUDED THAT IT IS NOT A PROBLEM OF SUPPLY AND DEMAND IN THE PRIVATE SECTOR AND IT HAS NOTHING TO DO WITH RENT CONTROL NOR SECURITY OF TENURE.
IT IS SIMPLY THE PRICE TO EITHER RENT OR PURCHASE IS TOO HIGH.
+ BELIEVE THESE EMPTY FLATS ARE IN THE HANDS OF DEVELOPERS AND SPECULATORS.
+ IF ANY LEGISLATION IS NEEDED, IT IS TO LEGISLATE AGAINST PEOPLE WHO LEAVE THE FLATS EMPTY AND TO DISCOURAGE SPECULATION ACTIVITIES, HE SAID.
/THE HON ANDREW SO