WEDNESDAY, MAY 22, 1991
15
PHASING OUT OF RENT CONTROLS BEING WORKED OUT
A DECISION ON THE LIKELY TIMING OF THE PHASING OUT OF RENT CONTROLS HAS YET TO BE MADE, THE SECRETARY FOR HOME AFFAIRS, THE HON PETER TSAO, INFORMED THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).
OF
IN A WRITTEN REPLY TO A QUESTION BY THE HON DAVID CHEUNG, MR TSAO SAID HE EXPECTED TO BE IN POSITION TO GIVE A CLEAR INDICATION A POSSIBLE TIME-TABLE LATER THIS YEAR AND TO SUBMIT TO LEGISLATIVE COUNCIL DETAILS OF THE MEASURES WHICH WOULD ACHIEVE PHASING OUT OF CONTROLS OVER THE NEXT THREE OR FOUR YEARS.
THE
THE
HE RECALLED THAT IN 1981, THE GOVERNMENT ACCEPTED A RECOMMENDATION BY THE COMMITTEE OF REVIEW OF THE LANDLORD AND TENANT (CONSOLIDATION} ORDINANCE THAT EVERY EFFORT SHOULD BE MADE TO ACCELERATE THE PHASING OUT OF RENT CONTROLS AS SOON AS CIRCUMSTANCES PERMIT AND HAVING REGARD TO THE NEED ΤΟ AVOID ADVERSE SOCIAL
CONSEQUENCES.
"ADJUSTMENTS ARE MADE ANNUALLY TO THE CONTROL MECHANISMS IN AN EFFORT TO BRING THE CONTROLLED RENTS CLOSER ΤΟ PREVAILING MARKET RATES, HE SAID.
"
CURRENTLY, THERE ARE SOME 44,000 PREMISES SUBJECT TO RENT CONTROLS AND THEIR NUMBER IS DIMINISHING AT A RATE OF ABOUT 5,000 PER YEAR DUB TO REPOSSESSION BY OWNERS, FRESH LETTINGS AT MARKET RATES AND DEMOLITION.
BUILDINGS
THE AVERAGE CONTROLLED RENTS OF PRE-WAR AND POST-WAR ARE $1,652 AND $2,565 RESPECTIVELY, REPRESENTING 64.7 PER CENT AND 61.9 PER CENT OF THEIR RESPECTIVE PREVAILING MARKET RENTALS.
MR TSAO SAID HE INTENDED TO ALLOW FOR PROGRESSIVE
THE ADJUSTMENT UPWARDS OF THESE CONTROLLED RENTS ON
BASIS PROVIDED HE WAS SATISFIED THAT SICH ADJUSTMENTS WOULD NOT RESULT IN UNACCEPTABLY ADVERSE SOCIAL CONSEQUENCES.
--
"TO THAT EXTENT, AFFORDABILITY WILL BE A FACTOR, HE SAID.
WITH REGARD TO MR CHEUNG'S QUERY REGARDING RATES AND THEIR RELATIONSHIP TO RENTALS, MR TSAO EXPLAINED THAT THE RATEABLE VALUE OF A PROPERTY WAS BASED ON AN ESTIMATE OF THE REASONABLE OPEN MARKET RENT AT WHICH THE PROPERTY MIGHT BE RENTED IF VACANT.
HE POINTED OUT THAT THE SAME RATEABLE VALUE WOULD WHETHER OR NOT THE PROPERTY WAS SUBJECT TO RENT CONTROL.
'THIS ENSURES UNIFORMITY DISTRIBUTION OF THE RATES BURDEN TSAO SAID.
APPLY
OF ASSESSMENT AND THUS THE FAIR BETWEEN DIFFERENT RATEPAYERS,
MR
"THUS, IF RENT CONTROLS ARE LIFTED, THIS WILL HAVE NO EFFECT ON THE LEVEL OF RATEABLE VALUES.
"THE ACTUAL AMOUNT OF RATES COLLECTED WILL ANYWAY DEPEND ON THE RATES PERCENTAGE CHARGE TO BE APPLIED TO THE RATEABLE VALUE.
HE ADDED THAT THIS PERCENTAGE WAS DETERMINED FROM TIME TO TIME BY RESOLUTION OF THE LEGISLATIVE COUNCIL.
/16