WEDNESDAY, JULY 2, 1986
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STEP-BY-STEP ADJUSTMENT RECOMMENDED *****
THE GOVERNMENT SHOULD TRY TO ADJUST STEP BY STEP THE PREVAILING MARKET RENT TO A LEVEL REASONABLY COMPARABLE TO THE INCOME LEVEL OF THE GENERAL PUBLIC, APART FROM EXERCISING PHASED RENT DECONTROL, DR THE HON DANIEL TSE SUGGESTED TODAY (WEDNESDAY).
SPEAKING IN THE LEGISLATIVE COUNCIL DURING THE RESUMED DEBATE OF THE LANDLORD AND TENANT (CONSOLIDATION) (AMENDMENT) BILL 1986, DR TSE EXPRESSED CONCERN ABOUT MEMBERS OF THE +SANDWICH CLASS+ WHO HAD NEITHER THE FINANCIAL ABILITY TO BECOME FLAT OWNERS NOR THE QUALIFICATIONS TO MOVE INTO PUBLIC HOUSING.
+IN FACT, THEY ARE FALLING BETWEEN TWO STOOLS AND AS A RESULT, THE RENT THEY ARE PAYING FOR THEIR ACCOMMODATION TAKES UP TOO LARGE A PROPORTION OF THEIR INCOME.
+FROM THE ECONOMIC VIEWPOINT OF A FREE SOCIETY, GRADUAL RENT DECONTROL IS A MEASURE WHICH GIVES NO CAUSE FOR MUCH CRITICISM, + HE SAID.
BUT UNFORTUNATELY HONG KONG WAS A SMALL TERRITORY WITH A LARGE POPULATION, DR TSE NOTED.
COUPLED WITH THE FACTOR OF SPECULATION, THE SO-CALLED +EQUITABLE MARKET RENTAL VALUE+ WAS ACTUALLY NOT VERY EQUITABLE AS IT WAS QUITE INCOMPATIBLE WITH THE INCOME LEVEL OF THE GENERAL PUBLIC, HE OBSERVED.
+ THE FACT THAT THERE IS RENT CONTROL AND THE IMPLEMENTATION OF THE POLICY TO PROVIDE PUBLIC HOUSING RENTAL AND HOME OWNERSHIP SCHEME FLATS ON A MASSIVE SCALE AMPLY PROVE THAT ANOMALY OF HIGH RENT DOES EXIST, HE SAID.
DR TSE CONSIDERED THAT THE RELAXATION OF RENT CONTROL SHOULD BE IN CO-ORDINATION WITH THE FORMULATION OF THE HOME OWNERSHIP SCHEME POLICY SO THAT THE +SANDWICH CLASS+ WOULD NOT HAVE TO LIVE UNDER THE PRESSURE OF UNREASONABLE RENT INCREASES.
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