XN000022-1973-10-31 — Page 46

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Wednesday, October 31, 1973

He added, however, that "there are overriding reasons of community

interest which require this mechanism to be suspended for the three-year

life of this Bill."

On the rents of currently controlled tenancies, Mr. Lightbody

said that in some cases the rents were fixed when there was a plentiful

supply of accommodation and they have been held back by previous rent

control legislation.

The Bill would rectify this situation in a controlled way. The

rate of increase, at one-fifth of the difference between the existing rent

and the fair market rent at a two-yearly interval, would close the gap

between regulated and fair market rent in about 10 years, if the proposed

legislative control was extended beyond 1976, he said.

He noted that of the 160,000 tenancies controlled by the 1970

Ordinance, over 80 per cent of the landlords and tenants reached agreement

on rent increases and did not inform or consult the Rating and Valuation

Department.

"Clearly the great majority of tenants use such legislation as

a bargaining weapon and prefer to reach their own settlement with their

landlords, and this is to be welcomed provided such bargains are freely

reached," he said.

He also noted that a new provision of the Bill was the requirement

for landlords to issue a receipt for every rent payment; the maximum

penalty for failure to do so being a fine of $2,000.

/This was