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HONGKONG LEGISLATIVE COUNCIL
The Rents Ordinance
3. The committee, in the short time at their disposal, have been unable to for- mulate any scheme to carry out this
THE ATTORNEY-GENERAL moved the first reading of a Bill intituled, An Ordinance to amend the law relating to the re-suggestion. The question of the percen- covery of possession in certain cases and to restrict the rents of certain domestic
tenements.
He said: I am sorry that the notice given of this Bill has been so short. In spite of strenuous efforts on the part of the printers, the Bill in its complete form with the "Object and Reasons" has only just been completed and placed in the hands of honourable members within the last few minutes. The urgency of the occasion is the explanation of the short notice, and, I think, its justi fication. As the "Objects and Reasons" attached to the Bill are unusually full and as they have only just been placed in the hands of honourable members, unless the Council is prepared to take them as read. I propose, with your per mission to read them and say very little eise in introducing the Bill.
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tage to be added in order to compensate for the fall in the value of money is a difficult one. It is complicated by the fact that in all probability the proper percentage would vary according to the locality in which the house was situated and it might be necessary to divide the Colony into a considerable number of districts in which varying percentages The boundaries of might be added. these districts might be difficult to as certain and to define.
The Council signified its wish that the Attorney-General should read the "Ob-Committee). jects and Reasons," which he did as follows, making a few interpolations which are printed in parenthesis:—
OBJECTS AND REASONS,
1. This bill is the outcome of the appointment by H.E. the Governor of a committee of the Legislative Council to consider and advise what steps should be taken to protect the tenants of domestic tenements from unreasonable
C
increases in rental and from arbitrary
termination of their tenancies.'
The
committee was appointed on the 23rd
June.
2. In appointing the committee H.E. the Governor suggested that a possible way of dealing with unreasonable in- creases in rental would be to add to the rents payable in 1914 and 1915 such a per- centage as would compensate for the fall in value of money during the last six or seven years, and to provide that no rent higher than the maximum rent so ascertained should be recoverable after the 30th June of this year, unless such higher rent should have been authorised by some body appointed for this pur-
pose.
For instance, it s possible that a district may have been in an early stage of development in 1914, and that the owners of houses in that district were prepared to let their property at low rentals in order to at- tract tenants to the locality, hoping to recover their losses later when the exten- sion of the town, or the increased po- pularity of the district, should have attracted a large population. (Certain instances of that were in the minds of the a case like this it would seem hardly fair to allow only the same percentage of increases X8 would be allowed in an old established district. The difficulty does not end here, because it is possible that some re- cent houses in the same locality may have been let from the beginning at a rental perfectly fair to the owners, and it would be unreasonable to allow such owners the same rate of increase would be allowed to owners who had at the beginning let their houses at a sacri. fice. It may also be pointed out that no assistance in dealing with the pro- posed return to the basis of the rents payable six or seven years ago, with the addition of a certain percentage, can be obtained from legislation on this subject in the United Kingdom or in the Straits Settlements, as in both these cases the statutes went back for a much shorter period. The original Act in the United Kingdom, which became law on the 23rd December, 1915, went back to the rents in force on the 3rd August, 1914, and the first Ordinance on the sub- ject in the Straits Settlements (which came into force on, September 30th, 1917), went back only about a year and nine months.
as
HONGKONG LEGISLATIVE COUNCIL
461
79
It does apply to
4. These difficulties are referred to, to furnished houses. not for the purpose of showing that the every bed space, cubicle, room, portion above suggestion is impracticable, but to of a floor, floor, or building, which is explain why it has not been possible to the subject of a separate letting, and adopt it in the present bill which has which is used for human habitation. It been drafted at such short notice. The applies to a shop if the master or his committee will proceed to consider the employees live on the premises. It does suggestion, and they will be glad to not apply to the New Territories, except receive through the Chairman (the New Kowloon. It does not apply to an Attorney-General) any practical legis entirely new building which gets its lative proposals as to how this sugges- occupation certificate after the com- tion can be carried out. The importance mencement of the Ordinance, and any of passing some legislation immediately such building will be completely free from is in order to prevent existing tenants the restrictions of the Ordinance. This from being turned out at the end of provision has been made because it is the current half year. (That sentence | desirable not to discourage the erection was written at a time when it
of new domestic buildings. The clauses thought that the Bill would be passed in the bill on which this paragraph is through all its stages at this meeting founded are clauses 2 (b) and 9. of the Council).
was
3. The main object of the present bill, therefore, is to ensure that tenants now in occupation shall not be dis possessed for the present, so long as they comply with the terms of the tenancies and-r which they hold. This policy ob- viously involves taking away from the landlords the right to give their tenants notice to quit.
8.-It is hoped that eff ct of the Ordinance will be to en- one subsidiary courage the erection of new domestic buildings. In the first place, such new buildings will be entirely free from the restrictions of the Ordinance, and the owners will be entitled to charge what- ever rents they can obtain. In the second place, as tenants cannot be turned out so long as they pay the standard rent, 6-It also seems desirable to provide well-to-do immigrants who wish to ac expressly against increases of rent dur-quire a residence in .gkong will have
to build for themselves. ing the currency of the Ordinance. In view of the fact that in many cases rents 9.-Tenants now in occupation will appear to have been raised excessively practically have their tenancies extend- since the end of last year, in some cases ed, on the old tenancy terms, so long as possibly on account of the anticipated they pay the standard rent, and if they raising of the rates, it seems advisable are turned out it will be due either to to go back to the 31st December, 1920. their own fauit or to their failure or for the purpose of ascertaining what is inability to pay the standard
the Ordinance the standard There is one exception to this statement, rent. Speaking broadly, if the bill bee.. when the landlord requires the pre- comes law, no tenant now
actual mises for his own occupation (see clause occupation will be obliged to pay any 4 (1) (e)), but even in that case the tenant rent higher than that which was payable will not be turned out unless the court in respect of his tenement on the 31st is satisfied that alternative accommoda- December, 1920. Provision is made in tion, reasonably equivalent as regards clause 2 (f) for the cases of domestic rent and suitability in all respects, tenements which were not let on 31st available. If a tenant does leave, or is December, 1920. (On that I would like ejected, no new tenant will be liable for to say that revision of rents involved any rent higher than the standard rent, is not a very revolutionary one, and. notwithstanding any agreement to the speaking generally. I think that no one contrary. would say that rents were low at the end of last year).
termed in
in
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10. It is obvious that the rights of intermediate lessees, e.g., farmers, may 7.-The bill applies only to private be affected by the operation of the domestic tenements, and it does not Ordinance. The lessee who collects the apply to offices, godowns, hotels or rents from the tenants in actual occupa- boarding houses. It also does not apply' tion will in future be restricted to the
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