XN000022-1972-06-22 — Page 13

-

13

Thursday, June 22, 1972

"Not only is there no question of people being made homeless because

of inability to pay increased rents, but the imposition of any form of rent

or rent increase control would represent a degree of interference with the

interplay of economic forces which would be unacceptable in the free market

economy of Hong Kong, and would amount to favouring one group of entrepreneurs

(the shopkeepers and factory operators) against another (the building owners),"

he said.

"In addition, the estimates of the amount of new non-domestic

accommodation expected to become available during 1972 and 1973, as published

in the Property Review 1972, indicate that we are moving into a period of much

improved supply, when pressure on business rents is expected to ease."

Mr. Akers-Jones said that proposals have been made from time to time

for some form of legislation which, while not controlling rents of business

premises, would ensure security of tenure of such premises at a full market

rent and such legislation may be introduced at a later date.

"It should be pointed out, however, that a system of this kind would

not be intended to restrain rents below the market level."

/14