53
HONGKONG LEGISLATIVE COUNCIL
was
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11
tity (400 was suggested) was estimated at $1,200 each.
Senior Unofficial
words: "In all other cases (except the minimum rental which could be charged, two refered to above) "houses built prior to notwithstanding the fact that the land 1903 are affected, most of them being would be leased for a period of ten years insanitary and dilapidated. In most without charge. No provision has been cases additional storeys are to be pro-made for vacancies, and consequently it vided, but in some cases-13 houses in is doubtful whether a lower rental than Rutter Street 1 houses in Upper Rutter $150 could be charged. This merely "Street and 19 houses in McGregor proves that blocks of residential flats are Street-the accommodation will be reduced necessary with a view of obtaining cheap owing to the provision of open spaces." accommodation, and that cheaply con- This provision of open spaces is just what structed bungalows will not meet the we desire. Supposing a committee
case. These houses were as cheap and set up.
as has been suggested by the small as they could be, occupying 1,400 Senior Unofficial Member, what standard square feet and containing two bed-rooms, could it adopt other than the standard of one sitting-room, one bath room, and small more accommodation and an improved servants' quarters.
The cost for a quan- type of house! You have to put in the balance on the one side a large number of very much improved dwellings holding more people, legitimately housed, and on the other a great temporary inconvenience to many tenants, and, admit, a very great hardship to some business men. supposing we had adopted this policy when the Rents Ordinance first came into operation, we should not probably have, as we have now, the fine Bank of China Building in Queen's Road, or the Asiatic Petroleum Building, or the large struc- tura in Pedder Street in which the Senior Chinese member is interested, because these buildings did disposess a number of business people who could find no other accommodation, and therefore lost their livelihood. Allegations, somewhat vague in character, have been made regarding the rapacity of landlords and there has been a suggestion that a Fair Rents Board should be created to curb their extor- tions.
A
But
I could tell tales of tenants who have sub-let their flats on the fiction of renting their furniture, which would put the tales regarding the landlords in the shade. But with regard to this rental question I think there has been great exaggeration. The Government has had in contemplation a scheme for building large number of bungalows, semi- detached, along the railway line in Kow loon. The idea was that these temporary bungalows should be of the simplest construction with wooden roofs covered with Malthoid roofing and no found- ations except enough to keep them standing against typhoons. Allowing for amortisation, repairs, rates, and
up- keep, and allowing also R ernt. on the fnvestment, the minimum per rental works out at $130 a month. I will read from the estimate: "This is the
The Honourable Italian Mission in Robinson Rd., pointing Member mentioned the flats built by the
out that they were too expensive for the Belilios Terrace, residents threatened with eviction from been put up under the Government Loan These buildings have Scheme and I return on the cost of the buildings alone am satisfied that the will not be more than six per cent, and if the value of the land is added the three and a half per cent. return will not be more than three, or
In a rapidly growing commercial com- munity like Hongkong, rising values must result in the building over of the vacant spaces in the
centre of the
rents
now
The same thing has happened in other town with consequently rising
cities. In London our grandfathers lived over their offices in the City, and their grandsons are St. Martin's, which was formerly in the in distant suburbs. Fields, is tow in adjacent to Trafalgar Square.
a crowded district
If the Council will excuse me in a digression for a moment, I may mention that the Town Planning Committee has laid out a very large residential area along the Kowloon foothills and the Government has initiated a new scheme which has difficulty to be inet has been the method of been accepted by certain capitalists. The the sale of land. boom tims, prices are exaggerated. If we do If we sell by auction, in not sell by auction the Government lays itself open to charges of bad faith by dis appointed applicants. Also, if land is sold below its market value there is no the next day. thing to prevent the purchaser selling it Government will give land anywhere in In this new scheme, the the Colony without charge on a forty
HONGKONG LEGISLATIVE COUNCIL
54
no longer be available for further enter-
years' lease. The Government and the lessee will by agreement, before opera prise. tions commence, fix the value of that land. Suppose, for example, it is a plot advised to take warning by the example I think this Council will be well of 50,000 feet at $2 a foot, you agree of other places where Government inter- before you start that the land is worth ference in economic laws of supply and $100,000 There will be imposed a build-demand as regards the housing question ing convenant, according to the locality, has not had the happiest results. and in some cases there will be a
You
restriction as to the type of tenant. cannot make omelettes without breaking When the buildings are completed the eggs, and I suggest that it is best to get lessee is allowed at anytime that the this painful process over as expeditiously value of the land is doubled to sell the as possible. by encouraging every form of whole property, as it stands, in the open building activity, whether in new houses market on the ordinary 75 years or in reconstruction, provided that tha renewable lease. The price realised goes accommodation (I am speaking parti- firstly to pay back the cost of the build- cularly of Chinese tenement houses) is in- ings, and the proceeds are divided creased and the type is improved. When equally between the Government and the conditions in China return to their lessee who has had the enterprise to put normal state-as assuredly they will- his money into the concern. The Govern-trade will revive, capital will flow back ment is assured that it gets back at least into its accustomed channels, a large the original value fixed upon the land number of our refugees will return__to and-here comes the important point of their hones, and I hope the Senior Un- the arrangement from the point of view official Member will be amongst the first- the housing question--the lessee, when that happy state of things arrives-— directly he has sold, must take his te congratulate the Government on original capital and re-invest it in a vastly improved city in which landlords similar operation. Therefore, as long as will be vying with one another to induce the demand is so much in excess of the tenants within their doors-(Applause.) supply as to cause land to double its value, the lessee will go on building and
With regard to the second amendment selling with the result that new buildings as to mala tide action on the part of the will always be coming into being. While landlord in demanding more than his the original lease for forty years
lawful rent, I will leave this to the Com- running the lessee can only charge amittee stage. I may, however, refer to sufficient nett rental to bring in eight Section 16 of the Rents Ordinance which per cent, and pay all expenses, including a sinking fund, and insurance and re- pairs: but there will be no charge in the
(1) No person shall, as a condition rent in respect of the value of the land.newal, or continuance, by himself. or by or pretended condition of the grant, re-
of
IR
says.
any other person, of a tenancy of any domestic tenement demand payment of any sum of money whatsoever in addi- tion to the rent."
The Senior Unofficial Member has ask. ed the Council to put a brake upon the enterprise of persons who are willing to give us new houses for old. The Govern- ment does not propose to use the official It is not for us to nurse the tenants majority to thwart the wishes of the in all their goings out, and comings in, and Unofficial members in the matter, but II propose to ask the Attorney-General would ask them to give very serious whether this does not sufficiently meet consideration to the question whether the difficulty. the proposed remedy will not aggra- vate the disease. The only criterion upon which you can base your decision will draw attention, namely the statement is the true interest of the community as
of the Senior Unofficial Member as to
There is one further matter to which I
a whole and I am sure we all have that Chinese sleeping in the streets. I think at heart.
I think, if this policy is if this got abroad, and especially if it adopted, housing will be checked. We got to Parliament at Home, it would can hardly revoke it until there is create a very wrong impression. Those obviously sufficient accommodation to who have had experience of this town at
take in persons who may be dispossessed, night or have had anything to do with and then, also obviously, the capital will the Police, will support me and I am
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