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FRIDAY, APRIL 15, 1983
+AS THE INCREASES AFFECTED BY THE ADDITIONAL REGULATOR WILL BE ON VERY LOW BASE RENTS, THEY WILL NOT BE EXCESSIVE IN DOLLAR TERMS, HE SAID. AND IN SUCH CASES THE NEW RENT WILL BE NO MORE THAN 30 PER CENT OF THE FAIR MARKET RENT,+
AN ANALYSIS CARRIED OUT BY THE RATING AND VALUATION DEPARTMENT EARLY THIS YEAR SHOWED THAT ONLY ABOUT 7 000 OR FIVE PER CENT OF PROTECTED SOLE TENANTS WOULD BE AFFECTED BY THIS PROPOSAL.
+FOR MOST PROTECTED TENANTS THE BIENNIAL PERMITTED INCREASE WILL STILL BE DERIVED FROM THE EXISTING FACTOR SYSTEM,+ HE EXPLAINED.
COMMENTING ON THE EXCLUSION OF TENANCIES FROM PART II OF THE ORDINANCE, MR LIAO SAID THEY WOULD BE ACCORDED SECURITY OF TENURE UNDER PART iv.
THIS MEANS THAT SITTING TENANTS WILL HAVE SECURITY OF TENURE AS LONG AS THEY ARE PREPARED TO PAY A FAIR MARKET RENT FOR THEIR ACCOMMODATION. WHERE MUTUAL AGREEMENT ON A TENANCY RENEWAL CANNOT BE REACHED, THE TENANT CAN APPLY TO THE LANDS TRIBUNAL FOR THE GRANT OF A NEW TENANCY AT A FAIR MARKET RENT TO BE DETERMINED BY THE TRIBUNAL.
MR LIAO SAID TENANTS WHO TOOK OUT FRESH LETTINGS OF POST-WAR PREMISES AFTER JUNE 30 THIS YEAR, WHATEVER THE AGE OF THE BUILDING, WOULD BE IN THE SAME POSITION AS TENANTS OF BUILDINGS COMPLETED AFTER JUNE 18, 1981, WHICH HAVE ALREADY BEEN EXCLUDED FROM PART | CONTROLS FOR THE PAST TWO YEARS.
TENANCIES OF PREMISES WITH RATEABLE VALUES OF $80 000 AND ABOVE AND $60 000 AND ABOVE WERE EXCLUDED FROM PART II IN 1981 AND 1982 RESPECTIVELY, AND THE FURTHER EXCLUSION PROPOSED IN THE BILL IS A CONTINUATION OF THE PROGRESSIVE REMOVAL OF TENANCIES OF LUXURY FLATS FROM RENT CONTROL. ABOUT 1 100 TENANCIES WOULD BE AFFECTED BY THE PROPOSAL TO EXCLUDE THOSE OF PREMISES WITH A RATEABLE VALUE OF $50 000 AND ABOVE. +OF THESE, SOME 80 PER
HE CENT ARE HELD BY CORPORATE TENANTS,+ MR LIAO POINTED OUT. ADDED THAT IT WAS THE INTENTION TO CONTINUE WITH THE PROGRESSIVE REMOVAL FROM CONTROLS OF LUXURY PREMISES IN FUTURE YEARS.
MR LIAO SAID IT WAS PROPOSED TO CHANGE THE TERM +FAIR MARKET RENT+ TO +PREVAILING MARKET RENT+, BUT THE DEFINITION WOULD REMAIN UNCHANGED. HE SAID THE PURPOSE OF THIS CHANGE WAS TO REMOVE THE POSSIBLY MISLEADING CONNOTATION OF THE TERM +FAIR+.
THE BILL ALSO INCLUDES A NUMBER OF LEGAL AND TECHNICAL REFINEMENTS TO THE EXISTING ORDINANCE,
PROVISION IS MADE FOR THE SURRENDER, BY AGREEMENT, OF A TENANCY PROTECTED UNDER PART 1. SUCH AN AGREEEMENT WILL BE SUBJECT TO ENDORSEMENT BY THE COMMISSIONER OF RATING AND VALUATION, WHO IS REQUIRED TO SATISFY HIMSELF THAT THE TENANT INVOLVED UNDERSTANDS ITS EFFECT.
ANOTHER PROPOSAL RECOMMENDS THAT WHERE A PRINCIPAL TENANT HAS SUBLET THE WHOLE OF THE PREMISES HE SHOULD NOT BE ACCORDED ANY SECURITY OF TENURE. THE LANDLORD MAY APPLY FOR RECOVERY OF POSSESSION IN SUCH CASES. HOWEVER,+ MR LIAO STRESSED, +SUB- TENANTS C THE PREMISES WOULD BECOME DIRECT TENANTS OF THE LANDLORD AND CONTINUE TO ENJOY SECURITY OF TENURE.+
/THE BILL