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WEDNESDAY, APRIL 26, 1989
RENT SPIRAL WORRIES CHENG HON-KWAN
MANY HONG KONG PEOPLE FIND SKYROCKETING RENTALS OF BOTH COMMERCIAL AND RESIDENTIAL PREMISES A SUBJECT OF INCREASING CONCERN, THE HON CHENG HON-KWAN SAID IN THE LEGISLATIVE COUNCIL TODAY
(WEDNESDAY),
SPEAKING DURING THE BUDGET DEBATE. MR CHENG SAID THIS WAS PARTICULARLY SO FOR COMMERCIAL PREMISES AS THERE WAS NO CONTROL OVER OFFICE RENTALS.
"IT IS APPALLING TO LEARN THAT RENTALS FOR OFFICE SPACE IN CENTRAL, IN SOME CASES, INCREASED BY AS MUCH AS OVER 70 PER CENT LAST YEAR ALONE, HE SAID.
H
OF THE
HE SAID THAT SUCH HIGH RENTS WERE A GENUINE REFLECTION ACUTE SHORTAGE OF AND HIGH DEMAND FOR OFFICE ACCOMMODATION, ESPECIALLY QUALITY OFFICE ACCOMMODATION IN PRIME LOCATIONS.
HE SAID THAT THE RENTAL SPIRAL, IF ALLOWED ΤΟ CONTINUE, WAS BOUND TO DETER NEWCOMERS FROM SETTING UP OFFICES IN HONG KONG CAUSE INTERNATIONAL FIRMS WHICH WERE ALREADY HERE TO RELOCATING THEIR BASES.
AND CONSIDER
HE SUGGESTED THAT THERE WAS AN URGENT NEED FOR THE GOVERNMENT TO MAKE AVAILABLE ADDITIONAL LAND FOR COMMERCIAL DEVELOPMENT.
WHILE LAND FORMATION PROGRAMMES FOR THE PROVISION OF ADDITIONAL LAND FOR OFFICE DEVELOPMENT IN CENTRAL AND OTHER LOCATIONS WOULD REQUIRE A FEW YEARS TO COMPLETE, THERE WERE MEASURES WHICH THE GOVERNMENT COULD IMPLEMENT TO PROVIDE RELIEF WITH IMMEDIATE EFFECT, HE SAID.
"ONE OF THESE IS THE REZONING OF INDUSTRIAL LAND IN SUITABLE LOCATIONS FOR COMMERCIAL USE, HE SUGGESTED.
"I
HE ADDED THAT ANY UNDUE DELAY IN TACKLING THE PROBLEM OF RENTAL SPIRAL WOULD BRING ABOUT ADVERSE EFFECTS TO THE ECONOMY.
MR CHENG SAID ANOTHER AREA WHICH COULD STRENGTHEN PUBLIC CONFIDENCE WAS THE PROVISION OF MORE PLACES FOR HIGHER EDUCATION, ESPECIALLY AT A TIME WHEN HONG KONG WAS BEGINNING TO FEEL OF THE BRAIN DRAIN PROBLEM.
THE IMPACT
BUT TERTIARY INSTITUTIONS, ESPECIALLY THE NON-UNIVERSITY INSTITUTIONS, HAD EXPERIENCED DIFFICULTIES IN RECRUITING SUFFICIENT QUALIFIED STAFF, HE SAID.
MR CHENG SAID THE LESS ATTRACTIVE SALARIES AND CONDITIONS OF SERVICE OF STAFF IN NON-UNIVERSITY INSTITUTIONS WERE A MAJOR FACTOR BEHIND THE DIFFICULTY IN FINDING THE REQUIRED STAFF.
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