FRIDAY, APRIL 15, 1983
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FURTHER EXTENSION OF RENT CONTROLS
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IT IS PROPOSED THAT TENANTS OF POST-WAR DOMESTIC PREMISES WILL CONTINUE TO BE PROTECTED AGAINST EXCESSIVE INCREASES IN RENT, THE SECRETARY FOR HOUSING, MR DONALD LIAO, ANNOUNCED TODAY.
THE LANDLORD AND TENANT (CONSOLIDATION) (AMENDMENT) BILL 1983, PUBLISHED IN THE GOVERNMENT GAZETTE TODAY, SEEKS TO EXTEND THE LIFE OF PART 1 OF THE PRINCIPAL ORDINANCE BY TWO YEARS, UNTIL DECEMBER 18, 1985.
THE BILL ALSO CONTAINS A NUMBER OF OTHER PROPOSALS FOR CONSIDERATION BY THE LEGISLATIVE COUNCIL, THE MOST IMPORTANT OF WHICH ARE
* THE INTRODUCTION FROM DECEMBER 19 OF AN ADDITIONAL REGULATOR TO THE METHOD OF DETERMINING PERMISSIBLE INCREASES IN RENT;
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THE EXCLUSION OF ALL NEW TENANCIES CREATED AFTER JUNE 30, AND
* THE EXCLUSION, FROM DECEMBER 19, 1983 OF EXISTING
TENANCIES OF PREMISES WITH A CURRENT RATEABLE VALUE OF $50 000 AND ABOVE.
COMMENTING ON THE BILL, MR LIAO SAID THE GOVERNMENT HAD CONDUCTED A REVIEW OF THE LEGISLATION WELL IN ADVANCE OF ITS CURRENT EXPIRY DATE AT THE END OF THIS YEAR IN ORDER TO GIVE PLENTY OF NOTICE OF PROPOSALS FOR THE FUTURE CONTROLS AND TO ALLOW TIME FOR PUBLIC COMMENT ON THEM.
THE BILL WILL BE INTRODUCED INTO THE LEGISLATIVE COUNCIL ON
THE RESUMPTION OF APRIL 27, FOR ITS FIRST AND SECOND READING. DEBATE WILL NOT TAKE PLACE UNTIL MAY 25, AND THE THIRD READING ON JUNE 8.
PUBLIC VIEWS EXPRESSED DURING THIS TIME WILL BE TAKEN INTO ACCOUNT AND REPRESENTATIONS MAY BE SUBMITTED TO UMELCO (SWIRE HOUSE, 12TH FLOOR, CHATER ROAD, CENTRAL, HONG KONG) OR THE SECRETARY FOR HOUSING (GOVERNMENT SECRETARIAT, LOWER ALBERT ROAD, HONG KONG).
UNDER THE EXISTING FACTOR SYSTEM, THE PERMITTED INCREASE IN RENT IS HALF THE DIFFERENCE BETWEEN THE CURRENT RENT AND THE FAIR MARKET RENT, OR 30 PER CENT OF THE CURRENT RENT, WHICHEVER IS THE SMALLER AMOUNT.
IT IS NOW PROPOSED THAT IN CASES WHERE THE NEW RENT DETERMINED BY THIS FORMULA IS LESS THAN 30 PER CENT OF THE FAIR MARKET RENT, THE PERMITTED INCREASE SHOULD BE AN AMOUNT NECESSARY TO BRING THE CURRENT RENT UP TO 30 PER CENT OF THE FAIR MARKET RENT.
MR LIAO SAID THE OBJECT WAS TO PREVENT VERY LOW RENTS, MANY OF WHICH HAD BEEN SUBJECT TO CONTROL FOR MORE THAN TEN YEARS, FROM FALLING FURTHER BELOW MARKET LEVELS AND TO PROVIDE FOR THE EVENTUALAISING OF SUCH RENTS CLOSER TO MARKET LEVELS.
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