WEDNESDAY, JULY 8, 1981
THE HON ANDREW SO PROPOSED THAT THE LANDLORD AND TENANT (CONSOLIDATION) (AMENDMENT) ORDINANCE 1980 SHOULD REMAIN AS IT IS FOR AT LEAST TWO MORE YEARS.
INCLUDING
*THIS WILL GIVE A LONGER BREATHING-SPACE TO TENANTS, FOREIGN INVESTORS IN HONG KONG WHO ARE UNDER GREAT PRESSURE OF HIGH RENT,+ HE SAID.
HE FELT THAT IN VIEW OF THE CURRENT SHORTAGE OF BOTH HOUSING AND LAND AND IN THE OVERALL INTEREST OF THE COMMUNITY, AMENDING RENT CONTROL +TO ATTAIN A REASONABLE BALANCE ON THE BENEFITS OF THE SECTORS CONCERNED IS ONLY AN EXPEDIENCY WHICH HAS THE DISADVANTAGE OF RASHNESS.
IF IT IS IMPLEMENTED, HE ADDED, A CHAIN REACTION WILL BE SET OFF, RESULTING IN THE BASIC LIVELIHOOD OF THE GENERAL PUBLIC BEING ADVERSELY AFFECTED.
MR SO SAID THAT IF THE ARGUMENT TO RELAX RENT CONTROL IS TO ENCOURAGE LANDLORDS TO LET OUT PREMISES, THEN WE ARE ACTUALLY GIVING A FREE HAND TO SPECULATORS WHO HAVE BEEN MANIPULATING THE MARKET+.
+EXPEDIENT MEASURES ARE BAD MEASURES. SINCE EVERYBODY KNOWS THAT THE ULTIMATE SOLUTION TO THE PROBLEM IS TO INCREASE LAND SUPPLY AND HOUSE PRODUCTION, WE SHOULD WORK POSITIVELY IN THIS DIRECTION,+
HE ALSO URGED THE GOVERNMENT TO REVIEW ITS HIGH LAND COST POLICY THOROUGHLY SO AS TO AVOID BEING LABELLED AS A GOVERNMENT WHICH PERMITS ITSELF TO UPHOLD HIGH LAND COSTS BUT DOES NOT ALLOW LANDLORDS TO INCREASE RENTS+.
MR BILL BROWN SAID HE DID NOT LIKE RENT CONTROLS, NOR DID HE LIKE TO SEE SO MANY OF OUR COMMUNITY SUFFERING FROM HOUSING PROBLEMS.
BUT IN HIS VIEW, THE BILL IS A SENSIBLE ATTEMPT TO BALANCE THE INTERESTS OF ALL CONCERNED WHILST THE PROBLEMS ARE STILL BE ING TACKLED+.
HE OPINED THAT OUR HOUSING PROBLEMS WERE NOT LIKELY TO BE RESOLVED WITHIN THE NEXT TWO YEARS AND IT WOULD BE NAIVE TO BELIEVE THAT THESE TEMPORARY MEASURES WOULD NOT BE FURTHER EXTENDED.
+ IF COMPLETE DECONTROL IS NOT GOING TO BE POSSIBLE FOR SOME TIME, THEN IT IS EVEN MORE NECESSARY TO ADJUST THE SYSTEM AT EACH EXTENSION TO SLOW DOWN THE RATE AT WHICH CONTROLLED RENTS FALL BEHIND MARKET RENTS, AND TO ENCOURAGE DEVELOPERS TO MAINTAIN PRODUCTION AND PLACE FLATS ON THE RENTAL MARKET.
+THE IMPORTANCE OF THIS IS ILLUSTRATED BY THE FACT THAT CONTROLLED RENTS TODAY ONLY AVERAGE ABOUT 40 PER CENT OF MARKET RENTS - AND THE PERCENTAGE IS ONLY 20 PER CENT IN THE CASE OF PRE-WAR PREMISES, HE SAID.
/HE QUOTED