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APRIL 16, 1985

THEY WERE IN KEEPING WITH THE GOVERNMENT'S PREVIOUSLY STATED INTENTION THAT AS SOON AS CIRCUMSTANCES PERMIT, EVERY EFFORT CONSISTENT WITH THE NEED TO AVOID ADVERSE SOCIAL CONSEQUENCES SHOULD BE MADE TO ACCELERATE THE PHASING OUT OF RENT CONTROL, THE SPOKESMAN SAID.

THE SPOKESMAN ALSO STRESSED THAT THE MAJORITY OF PROTECTED TENANTS WOULD CONTINUE TO ENJOY THE PROTECTION OF SECURITY OF TENURE AND THE CONTROL OF RENT INCREASES.

THE PROPOSED MEASURES ARE CONTAINED IN THE LANDLORD AND TENANT (CONSOLIDATION) (AMENDMENT) BILL 1985 TO BE GAZETTED ON APRIL 26. THE BILL WILL BE INTRODUCED INTO THE THE LEGISLATIVE COUNCIL ON MAY 15 WHILE THE RESUMED SECOND READING WILL NOT TAKE PLACE UNTIL JUNE 12, GIVING AMPLE TIME FOR PUBLIC VIEWS TO BE TAKEN INTO ACCOUNT. THE DATE FOR THE COMMITTEE STAGE AND THIRD READING OF THE BILL WILL BE NOTIFIED LATER.

EXTENSION OF PART II

PART I OF THE ORDINANCE IS DUE TO EXPIRE ON DECEMBER 18, 1985.

THE SPOKESMAN POINTED OUT THAT THE EXTENSION OF THE LIFE OF PART II BY TWO YEARS WILL CONTINUE THE DUAL PROTECTION OF RENT CONTROL AND SECURITY OF TENURE TO ABOUT 107 000 TENANCIES OF WHOLLY-LET DOMESTIC UNITS AFFECTING ABOUT 220 000 HOUSEHOLDS OR SOME 850 000 PERSONS,

DESPITE A SERIES OF ADJUSTMENTS TO THE RENT INCREASE SYSTEM WITH THE OBJECTIVE OF NARROWING THE GAP BETWEEN CONTROLLED RENTS AND PREVAILING MARKET RENTS AND A CURRENT STABLE MARKET. THE DISPARITY BETWEEN CONTROLLED AND PREVAILING MARKET RENTS CONTINUES, HE NOTED.

FURTHER EXCLUSION OF LUXURY PREMISES

THE SPOKESMAN EXPLAINED THAT EXCLUSION OF LUXURY PREMISES FROM RENT CONTROL UNDER PART 11 WAS DONE IN PHASES BEGINNING IN DECEMBER, 1981 TO EXCLUSE PREMISES WHICH HAD A RATEABLE VALUE OF OR ABOVE $80 000. THIS EXCLUSION POINT WAS FURTHER LOWERED TO $60 000 IN 1982 AND $50 000 IN 1983. LAST YEAR IT WAS LOWERED TO $35 000.

TO CONTINUE THIS PROCESS, IT IS NOW PROPOSED THAT FROM DECEMBER 19 THIS YEAR, PREMISES WITH A RATEABLE VALUE OF OR ABOVE $30 000 AS AT JUNE 10, 1983 (I.E. THE OLD RATEABLE VALUE BEFORE THE 1984 REVALUATION) SHOULD BE REMOVED FROM PART + OF THE ORDINANCE. HOWEVER, TENANCIES AFFECTED BY THIS PROPOSAL WILL BE PROTECTED UNDER PART IV WHICH AFFORDS SECURITY OF TENURE AT THE PREVAILING MARKET RENT.

/AT PRESENT,

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