26
WEDNESDAY, JULY 2, 1986
NO REASON TO SLOW DOWN RENT DECONTROL MECHANISM
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THE LANDLORD AND TENANT (CONSOLIDATION) (AMENDMENT) BILL 1936, IF ENACTED, WOULD BE A STEP IN THE RIGHT DIRECTION IN GRADUALLY PHASING OUT RENT CONTROL AND AS THE SECURITY OF TENURE WAS ADEQUATELY PROTECTED, THERE WAS NO REASON FOR SLOWING DOWN THE RENT DECONTROL MECHANISM WHICH HAD BEEN SET IN MOTION.
THIS WAS STATED BY THE HON K C CHAN IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY) DURING THE RESUMED DEBATE ON THE BILL.
HE SAID THE BILL HAD BEEN STUDIED BY A LEGISLATIVE COUNCIL AD HOC GROUP, OF WHICH HE WAS THE CONVENER, AND MEMBERS HAD AGREED IN PRINCIPLE TO SUPPORT IT.
HOWEVER, AS RENT INCREASE AND SECURITY OF TENURE WERE SENSITIVE PUBLIC ISSUES, MR CHAN POINTED OUT THAT A STATEMENT BY THE ADMINISTRATION TO CLARIFY THE POINTS RAISED BY LEGISLATIVE COUNCIL MEMBERS AND PERIODIC MONITORING OF THE EFFECTS OF THE BILL WOULD CLEAR DOUBTS, IF ANY, IN THE MINDS OF THE PUBLIC.
PERSONALLY, MR CHAN SAID, HE WAS IN SUPPORT OF DECONTROL OF RENT FOR PRIVATE HOUSING AND IN THE SUPPLY OF BOTH PUBLIC AND PRIVATE HOUSING BY STAGES TO SOLVE HONG KONG'S HOUSING PROBLEMS.
ELABORATING, HE SAID THAT THE ABSOLUTE MAJORITY OF SO-CALLED +LANDLORDS+ IN HONG KONG WERE ONLY OWNERS OF ONE OR TWO SMALL FLATS.
SOME 30 YEARS AGO, HE SAID, THE PURCHASE OF FLATS BY INSTALMENT PAYMENT WAS AVAILABLE TO MEN OF SMALL MEANS, SUCH AS CLERKS, BLUE COLLARED WORKERS AND DOMESTIC SERVANTS.
+AS MOST OF THEM WOULD RETIRE WITHOUT PENSION OR GRATUITY, BUYING A FLAT OR TWO BY MONTHLY SAVINGS WOULD PROVIDE THEM WITH FOOD AND SHELTER FOR THEIR OLD AGE, HE SAID.
HE SAID HE BELIEVED THAT THE SOLUTION OF HOUSING PROBLEM FOR THE +NOT-SO-WELL-TO-DO+ WAS NOT A RESPONSIBILITY OF THE PRIVATE SECTOR AND THE ANSWER WAS MORE PUBLIC HOUSING.
+ THE PRESENT SYSTEM OF PROPERTY TAX AT THE STANDARD RATE ON ACTUAL RENT COLLECTED LESS 20 PER CENT OUTGOINGS WOULD PROVIDE SUBSTANTIAL FUNDS IN THE PUBLIC COFFERS TO SUBSIDISE MORE PUBLIC HOUSING SCHEMES THROUGH THE DEVELOPMENT LOAN FUND,+ HE SAID.
/ON HOUSING