21
WEDNESDAY, JULY 12, 1989
LONG-TERM OBJECTIVE ON RENT CONTROL EXPLAINED
THE GOVERNMENT'S
PHASING OUT OF RENT
LONG-TERM OBJECTIVE IS TO ACCELERATE THE CONTROL, PROVIDED THAT SOCIAL AND ECONOMIC
HARDSHIP CAN BE AVOIDED.
THE SECRETARY FOR LANDS AND WORKS, THE HON GRAHAM BARNES, SAID THIS IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY) WHEN MOVING A RESOLUTION TO EFFECT CERTAIN AMENDMENTS TO THE LANDLORD AND TENANT (CONSOLIDATION) ORDINANCE.
THE RESOLUTION WAS APPROVED.
MR BARNES SAID AMENDING LEGISLATION HAD BEEN PASSED BY THE LEGISLATIVE COUNCIL EACH YEAR SINCE 1981 FOR PRE-WAR PREMISES, AND EACH YEAR SINCE 1983 FOR POST-WAR ONES.
RENTS
THIS WAS DONE TO RAISE THE CONTROLLED
PROGRESSIVELY, BRINGING THEM CLOSER TO PREVAILING MARKET LEVELS AND EVENTUAL DECONTROL.
"THE FIRST PROPOSAL IN THE RESOLUTION IS TO RAISE THE PERMITTED RENT OF PRE-WAR PREMISES COVERED BY PART I OF THE ORDINANCE, TO A MORE REALISTIC LEVEL," HE SAID.
"RENTS OF PRE-WAR PREMISES ARE DERIVED FROM A STANDARD RENT AS AT DECEMBER 25, 1941. THE CURRENT PERMITTED RENT IS SET AT 39 TIMES THIS LEVEL, AND IT IS NOW PROPOSED TO INCREASE THIS WITH EFFECT FROM NOVEMBER 1 THIS YEAR, TO 43 TIMES THE STANDARD RENT.
PRE-WAR
"THIS CHANGE WOULD BRING THE AVERAGE PERMITTED RENT OF PREMISES UP FROM 71 PER CENT TO 79 PER CENT OF THE PREVAILING MARKET LEVEL.
"IT WOULD RESULT IN AN AVERAGE INCREASE OF ABOUT 10 PER CENT, OR $150 PER MONTH, ON CURRENT PERMITTED RENTS AND WOULD AFFECT ABOUT 1,350 DOMESTIC PREMISES."
RAISE
MR BARNES SAID THE SECOND PROPOSAL IN THE RESOLUTION WAS TO THE SO-CALLED "MINIMUM PERCENTAGE COMPONENT" IN THE RENT INCREASE MECHANISM THAT APPLIED TO POST-WAR DOMESTIC PREMISES PROTECTED UNDER PART II OF THE ORDINANCE ΤΟ 65 PER CENT EFFECTIVE FROM DECEMBER 19, 1989.
"RENT INCREASES PERMITTED IN RESPECT OF TENANCIES PROTECTED UNDER PART II OF THE ORDINANCE, ARE LIMITED TO THE DIFFERENCE BETWEEN THE CURRENT RENT AND THE PREVAILING MARKET RENT, BUT SUBJECT 'TO CEILING OF 30 PER CENT OF THE CURRENT RENT," HE SAID.
A
FORMULA OF THE
BE
THE
"HOWEVER, IF THE NEW RENT CALCULATED ACCORDING TO THIS IS LESS THAN A SPECIFIED PERCENTAGE (AT PRESENT 60 PER PREVAILING MARKET RENT THE PERMITTED RENT INCREASE AMOUNT WHICH WILL BRING THE NEW RENT UP TO THIS MINIMUM PERCENTAGE.
CENT) WOULD
/MR BARNES