WEDNESDAY, JUNE 30, 1993
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BILL ON RENT DECONTROL PASSED
THE LANDLORD AND TENANT (CONSOLIDATION) (AMENDMENT) BILL 1992 WAS PASSED WITH AMENDMENTS IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY}.
SPEAKING AT THE RESUMED DEBATE ON THE BILL, THE SECRETARY POR HOME AFFAIRS, MR MICHAEL SUEN, EMPHASISED THAT THE BILL HAD TAKEN INTO CONSIDERATION BOTH THE INTERESTS OF TENANTS AND LANDLORDS.
HE SAID AMENDMENTS HERE INCLUDED AS A RESULT OF THE COMPREHENSIVE EXAMINATION BY THE AD HỌC GROUP SET UP TO STUDY THE BILL AND THE DEBATE ON IT.
"I
THE
AM CONFIDENT THAT THESE AMENDMENTS ADDRESS WITH EQUITY PRINCIPAL CONCERNS WHICH HAVE BEEN EXPRESSED BY MEMBERS OF THIS COUNCIL, VARIOUS CONCERNED GROUPS AND BY THE PUBLIC," HE SAID.
THE NEWLY ENACTED LAW SEEKS TO PHASE OUT RENT CONTROLS WHICH WERE TEMPORARILY INTRODUCED MANY YEARS AGO TO COUNTER THE POSSIBILITY OF UNREASONABLE RENTS BEING CHARGED WHEN THE SUPPLY OF ACCOMMODATION WAS NOT KEEPING UP WITH DEMAND.
FOR SOME YEARS NOW, THIS IMBALANCE HAS BEEN CORRECTED AND A REASONABLE BALANCE IS FORECASTED FOR THE FUTURE," HE SAID.
RENT AND DIFFICULT
IN THE MEANTIME IF ACTION, AS PROPOSED IN THE BILL, IS NOT COMMENCED, THE DISPARITY BETWEEN THE LEVEL OF CONTROLLED MARKET RENTS WILL CONTINUE TO INCREASE, MAKING IT EVEN MORE TO ACHIEVE DECONTROL, MR SUEN SAID.
REGARDING THE AMENDMENTS, MR SUEN SAID THE DEADLINE FOR THE PHASING OUT OF CONTROLS WOULD BE EXTENDED FOR TWO YEARS FROM DECEMBER 31, 1994 TO DECEMBER 31, 1996.
THE ANNUAL ADJUSTMENTS FOR PART II TENANCIES, WHICH CONSTITUTED 97 PER CENT OF ALL CONTROLLED PREMISES, WOULD BE LOWERED FROM THE ORIGINAL PROPOSAL OF 7.5 PERCENTAGE POINTS OF THE PREVAILING MARKET RENT TO 5.
AS FOR STATUTORY COMPENSATION, RAISING THE MULTIPLIER FROM THE ORIGINAL 1.3 ΤΟ 1.7 OF THE CURRENT RATRABLE VALUE WOULD ALLOW A DISPOSSESSED TENANT TO RENT SIMILAR PREMISES FOR ABOUT EIGHT MONTHS.
MR SUEN POINTED OUT THAT LAST YEAR, THE COMMISSIONER OF RATING AND VALUATION HAD CONDUCTED A COMPREHENSIVE SURVEY OF ALL HOUSEHOLDS AFFECTED BY PART II CONTROLS.
THE SURVEY CONFIRMED THAT THERE WERE SOME 32,500 PART II CONTROLLED UNITS HOUSING 45,500 HOUSEHOLDS WITH A TOTAL POPULATION 137,000 PERSONS.
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HE NOTED THAT LANDLORDS OF CONTROLLED PREMISES HAD FOR MANY YEARS BEEN UNABLE TO CHARGE MARKET RENTS AND ABOUT 75 PER CENT OF PART II LANDLORDS PURCHASED THEIR PROPERTIES BEFORE CONTROLS WERE
INTRODUCED.
/ALMOST HALF