WEDNESDAY, APRIL 27, 1983
31
RENT CONTROL POLICY A DYNAMIC ENTITY
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RENT CONTROL POLICY IS A DYNAMIC ENTITY WHICH MUST BE ADJUSTED IN RESPONSE TO SOCIAL AND MARKET SITUATIONS WHILE KEEPING IN VIEW THE OVERALL OBJECTIVE OF AN EVENTUAL RETURN TO FREE MARKET CONDITIONS, THE SECRETARY FOR HOUSING, THE HON DONALD LIAO, SAID IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).
IN MOVING THE SECOND READING OF THE LANDLORD AND TENANT (CONSOLIDATION) (AMENDMENT) BILL 1983, MR LIAO SAID ALTHOUGH STEPS WERE TAKEN IN 1981, CIRCUMSTANCES HAVE SINCE CHANGED1 SELLING PRICES OF FLATS HAVE DROPPED SUBSTANTIALLY AND RENTS HAVE STABILISED OR FALLEN,
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+AT THE END OF 1982, THERE WERE SOME 32 000 DOMESTIC PREMISES STANDING VACANT AN ALL-TIME RECORD, HE SAID. IT IS AGAINST THIS BACKGROUND THAT THE PROPOSALS IN THE BILL NOW BEFORE THIS COUNCIL HAVE BEEN FORMULATED.+
MR LIAO SAID THE MAIN PROPOSAL WAS THAT THE LIFE OF PART II OF THE ORDINANCE SHOULD BE EXTENDED FOR TWO YEARS BEYOND ITS PRESENT EXPIRY DATE OF DECEMBER 18, 1983.
HE SAID BECAUSE OF PROLONGED AND RIGID RENT INCREASE CONTROL THERE WAS IN MANY CASES A VERY WIDE DISPARITY BETWEEN CONTROLLED AND MARKET RENTS.
+WHILST CONTROLLED RENTS STAND, ON AVERAGE, AT ABOUT 45 PER CENT OF MARKET RENTS, A GREAT NUMBER OF TENANTS PAY SUBSTANTIALLY LOWER RENTS FOR THEIR ACCOMMODATION.
+UNDER THESE CIRCUMSTANCES, IT WOULD CLEARLY BE WRONG TO CONSIDER SUDDEN AND COMPLETE REMOVAL OF RENT CONTROLS: THE DEGREE OF SOCIAL UPHEAVAL WOULD BE UNACCEPTABLE,+
MR LIAO SAID IT WAS FOR THIS REASON ABOVE ALL THAT THE GOVERNMENT WAS COMMITTED TO A GRADUAL RETURN TO A FREE MARKET IN PRIVATE RENTED ACCOMMODATION.
+ IN EXTENDING THE LIFE OF THIS LEGISLATION, WE ARE PROPOSING THREE FURTHER STEPS IN THIS GRADUAL DECONTROL PROCESS, HE ADDED.
THESE WERE:
* THE MODIFICATION OF THE EXISTING SYSTEM OF RENT INCREASE CONTROL UNDER PART II SO THAT VERY LOW CONTROLLED RENTS MAY BE INCREASED TO AT LEAST 30 PER CENT OF THE PREVAILING MARKET RENT:
*
THE EXCLUSION FROM THE PROVISIONS OF PART 1 OF ALL FRESH TENANCIES; AND
19, 1983 THE EXCLUSION FROM PART 1 FROM DECEMBER 19, ONWARDS OF EXISTING TENANCIES OF PREMISES WITH RATEABLE VALUES OF $50 000 OR MORE.
/MR LIAO