WEDNESDAY, JULY 8, 1987
41
RENTS TO BE DECONTROLLED IN FOUR YEARS
THE GOVERNMENT AIMS TO ACHIEVE ITS LONG-TERM OBJECTIVE OF ELIMINATING RENT CONTROL IN FOUR YEARS, BUT IN THE MEANTIME TENANTS OF POST-WAR PREMISES WOULD BE PROTECTED FOR ANOTHER TWO YEARS WHILE RENTS FOR PRE-WAR TENANCIES WOULD EE BROUGHT IN LINE TO MARKET LEVELS, THE SECRETARY FOR DISTRICT ADMINISTRATION, THE HON T.H. CHAU TOLD LEGISLATIVE COUNCIL TODAY (WEDNESDAY).
THE
IN MOVING THE LANDLORD AND TENANT (CONSOLIDATION) (AMENDMENT) RESOLUTION 1987, MR CHAU SAID THE PROPOSALS SOUGHT TO RAISE THE RENTS OF PRE-WAR PREMISES TO MORE REALISTIC LEVELS AND AT THE SAME TIME EXTEND FOR TWO YEARS, THE DUAL PROTECTION OF RENT CONTROL AND SECURITY OF TENURE TO TENANTS OF POST-WAR PREMISES.
RENTS OF PRE-WAR PREMISES COVERED IN PART ONE OF THE ORDINANCE WERE DERIVED FROM A STANDARD RENT AS AT DECEMBER 25, 1941. THE CURRENT PERMITTED RENT WAS SET AT 30 TIMES THIS LEVEL, AND THIS WOULD BE INCREASED ΤΟ 35 TIMES THE STANDARD RENT UNDER THE PROPOSED RESOLUTION, MR CHAU SAID.
"THIS WOULD BRING THE AVERAGE PERMITTED RENT OF PRE-WAR PREMISES UP TO 70 PER CENT OF THE MARKET LEVEL, WHICH WOULD RESULT IN AN AVERAGE INCREASE OF ABOUT $190 PER MONTH. OR 17 PER CENT, ON CURRENT PERMITTED RENTS AFFECTING 1,860 DOMESTIC PREMISES, HE ADDED.
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MR CHAU SAID THE RESOLUTION ALSO PROPOSED A FURTHER EXTENSION OF TWO YEARS TO THE LIFE OF PART TWO OF THE ORDINANCE, FROM DECEMBER 19, 1987 TO DECEMBER 18, 1989, WHICH PROVIDED THE DUAL PROTECTION OF RENT CONTROL AND SECURITY OF TENURE TO 90,000 POST-WAR TENANCIES PLUS AN UNDETERMINED NUMBER OF SUB-TENANCIES AFFECTING ABOUT 180,000 HOUSEHOLDS OR SOME 650,000 PEOPLE.
"THE AVERAGE CONTROLLED RENTS FOR THESE TENANCIES NOW STAND AT ABOUT 70 PER CENT OF THE PREVAILING MARKET RENT.
"FOR ABOUT TWO-THIRDS OF THESE TENANCIES, HOWEVER, THE RATIO IS BELOW THIS OVERALL AVERAGE AND FOR ABOUT TWO-FIFTHS, THE RENTS LESS THAN 60 PER CENT OF MARKET RENTS.
"IF PART TWO IS ALLOWED TO EXPIRE ON TENANTS CONCERNED WILL FACE, ON AVERAGE, AN OF MORE THAN 40 PER CENT AND A LARGE NUMBER NEARLY DOUBLED, MR CHAU SAID.
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THE LIKELY HARDSHIP AND DISLOCATION SOCIALLY DISRUPTIVE, HE ADDED.
ARE
DECEMBER 18 THIS YEAR, IMMEDIATE RENT INCREASE WILL HAVE THEIR RENTS
WOULD BE SERIOUS AND
MR CHAU SAID THIS SECTION OF THE ORDINANCE PERMITTED A MAXIMUM BIENNIAL INCREASE OF 30 PER CENT ON CURRENT RENT, PROVIDED THAT THE NEW RENT DID NOT EXCEED PREVAILING MARKET LEVELS.
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