WEDNESDAY, JULY 8, 1981
+THE PIECEMEAL AND INCOHERENT NATURE OF THE PRESENT RENT CONTROL LEGISLATION LEADS TO THE ILLUSION THAT IF ONE HOLDS ON TO SOMETHING WHICH ONE DOES NOT RIGHTFULLY OWN, IN THIS CASE, TENANTS OF PROTECTED PREMISES, ONE COULD MANAGE TO GET SOME ADVANTAGE OF COMPENSATION OUT OF IT.
+HENCE UNNECESSARY CONFRONTATIONS ARE CREATED BETWEEN LANDLORDS, PRINCIPAL TENANTS AND TENANTS AND THESE ADD UNNECESSARY LOAD TO THE WORK OF ALL PARTIES CONCERNED.-
HE THEREFORE THOUGHT THAT RENT CONTROL IS JUSTIFIABLE FOR SMALL FLATS IN THE SHORT TERM TO STOP STEEP INCREASES IN RENT OWING TO SUDDEN INCREASE IN DEMAND.
BUT THE FINAL SOLUTION TO THE HOUSING PROBLEM IS THE BUILDING OF MORE PUBLIC HOUSING AND HOME OWNERSHIP FLATS RATHER THAN RENT CONTROL WHICH SHOULD BE PHASED OUT AS SOON AS POSSIBLE TAKING THE SOCIO-ECONOMIC FACTORS INTO CONSIDERATION, HE SAID.
MR CHAN ALSO SUGGESTED THAT LUXURIOUS FLATS AND NEW DOMESTIC PREMISES BE DECONTROLLED.
HE POINTED OUT THAT TENANTS OF THE UPPER RENTAL BRACKET ARE USUALLY SUBSIDIZED BY MULTI-NATIONAL FIRMS OR GOVERNMENTS.
THERE IS NO SOUND ECONOMIC REASON WHY HONG KONG'S CORPORATIONS OR INDIVIDUALS SHOULD SUBSIDIZE THEM, HE SAID.
+THERE ARE PROS AND CONS IN SETTING UP ONE'S BUSINESS IN HONG KONG BUT ON WEIGHING ALL THE FACTORS, ONE WOULD FIND HONG KONG A BETTER PLACE, ESPECIALLY IF ONE TRADES WITH CHINA,
*THERE IS NO OTHER PLACE IN THE WORLD GEOGRAPHICALLY TO GIVE THE BEST OF TWO WORLDS.
+THE RENT FACTOR IS SELDOM A DECISIVE FACTOR BY ITSELF AND THE 'INVISIBLE QUEUE OF CORPORATIONS FROM OTHER COUNTRIES TO SET UP BUSINESS HERE IS LONG AND I REGRET THAT ONLY THE FITTEST SURVIVIES.
+IN FACT, DECONTROL OF LUXURY AND NEW PREMISES MAY HELP TO INCREASE THE SUPPLY AND STABILISE THE RENTAL LEVELS SO THAT TIME MAY AGAIN BE RIGHT FOR PURCHASES, HE ADDED.
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