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WEDNESDAY, MAY 25, 1983
RENT CONTROL PERPETUATING HOUSING SHORTAGE
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RENT CONTROL PERPETUATED THE HOUSING SHORTAGE, AS THE INCREASE IN THE NUMBER OF VACANT DOMESTIC FLATS FROM SOME 17 000 AT THE END OF 1980 TO SOME 32 000 BY THE END OF 1982 SHOWED, THE HON K.C. CHAN SAID IN THE LEGISLATIVE COUNCIL TODAY.
IF THESE FLATS ARE NOT LET THE MIDDLE AND LOWER INCOME GROUPS WOULD DERIVE NO BENEFIT FROM THEM IN TERMS OF LOWER RENTAL AND GREATER SUPPLY,+ MR CHAN SAID DURING THE RESUMED DEBATE OF THE LANDLORD AND TENANT (CONSOLIDATION) (AMENDMENT) BILL 1983.
+HUGE RESOURCES ($16 BILLION EVEN AT A CONSERVATIVE AVERAGE OF HALF A MILLION DOLLARS PER FLAT) ARE FROZEN AND NOT RECYCLED INTO THE ECONOMY AS RENT, PROPERTY TAX, OPPORTUNITIES FOR EMPLOYMENT, ETC., HE SAID.
MR CHAN, WHO SUPPORTED THE MOTION, SAID THE SECURITY OF TENURE OFFERED BY THE LAW HAD MADE PROPERTY INVESTMENT UNATTRACTIVE IN THAT THE CAPITAL, ONCE INVESTED, COULD NOT BE WITHDRAWN EASILY,
THE CONTROL OF RENT INCREASE BELOW THE RATE OF INFLATION WOULD GRADUALLY ERODE THE LANDLORDS' LOAF OF BREAD TO SLICES AND THEN TO CRUMBS, HE SAID.
WITH PROPERTY TAX NOW COMPUTED AT 15 PER CENT ON ACTUAL RENTALS, REVENUE FROM THIS SOURCE WAS VERY MUCH DEFLATED, MR CHAN SAID.
THE PUBLIC COFFERS THUS SUFFERED BECAUSE IT WAS THE TAXPAYERS WHO WOULD FOOT THE BILL WHEN THERE WAS A GOVERNMENT BUDGET DEFICIT, HE ADDED.
MR CHAN SAID THERE WAS NOW ONLY HALF A MILLION TENANTS IN RENT CONTROLLED PREMISES, COMPARED WITH AN ESTIMATED 1.2 MILLION IN MARCH 1980.
TO ACHIEVE TOTAL RENT DECONTROL, THE GOVERNMENT SHOULD FIRST LOOK INTO THE HOUSING NEEDS OF THESE TENANTS, HE SAID.
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*WE SHOULD GET ALL THOSE WELL-OFF TENANTS OR ABSENTEE TENANTS OUT OF PUBLIC HOUSING INTO HOME OWNERSHIP OR PRIVATE HOUSING AND LET THE PEOPLE IN THE QUEUE OF UNDER-PRIVILEGED APPLICANTS WHO CANNOT AFFORD PRIVATE HOUSING TO TAKE UP THE VACANCY THUS CREATED.
+NEW TENANCIES IN PUBLIC HOUSING SHOULD BE OF 10 YEARS DURATION AND TERMINATED OR EXTENDED ACCORDING TO THE THEN PREVAILING FINANCIAL CIRCUMSTANCES OF THE TENANT.
+LET MORE POOR PEOPLE HAVE THAT TEN-YEAR RELIEF IN SUBSIDISED RENT AND HAVE SOME SAVINGS TO CREATE WEALTH AND FOSTER THEIR SENSE OF BELONGING TO HONG KONG+, HE SAID.
MR CHAN DECLARED HIS INTEREST AS A TENANT OF A CONTROLLED DOMESTIC PREMISES.
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