XN000022-1977-12-07 — Page 10

WEDNESDAY, DECEMBER 7, 1977

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LANDLORD AND TENANT (CONSOLIDATION) (AMENDMENT) BILL

INTRODUCED INTO LEGCO

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THE GOVERNMENT HAS TO TRY TO ACHIEVE A SENSIBLE BALANCE, TAKING INTO ACCOUNT NOT ONLY INDIVIDUAL INTERESTS CONCERNED BUT ALSO THE INTERESTS OF THE COMMUNITY AS A WHOLE IN ANY MATTER AFFECTING PERSONS WHOSE INTERESTS ARE AS POLARISED AS LANDLORDS AND TENANTS.

THE SECRETARY FOR HOUSING, THE HON. ALAN SCOTT, SAID THIS TODAY IN THE LEGISLATIVE COUNCIL WHEN MOVING THE SECOND READING OF THE LANDLORD AND TENANT (CONSOLIDATION) (AMENDMENT) BILL 1977.

MR. SCOTT SAID THE AIM OF THE BILL WAS TO PERMIT SMALL RENT INCREASES FOR CONTROLLED DOMESTIC AND NON-DOMESTIC TENANCIES IN PRE-WAR BUILDINGS AND TO REGULATE THE PERIODIC RENT INCREASES PERMITTED IN DOMESTIC TENANCIES IN POST-WAR BUILDINGS CONTROLLED UNDER EXISTING LEGISLATION.

ON PRE-WAR PREMISES, MR. SCOTT SAID THE BILL PROVIDED FOR INCREASES IN PERMITTED RENTS IN SUCH BUILDINGS OF THE ORDER OF 16.5 PER CENT FOR DOMESTIC TENANCIES AND 32 PER CENT FOR NON-DOMESTIC TENANCIES, BRINGING PERMITTED RENTS TO STANDARD RENT PLUS 200 PER CENT IN THE CASE OF THE FORMER AND TO STANDARD RENT PLUS 500 PER CENT FOR THE LATTER.

+THESE PERCENTAGE FIGURES APPEAR VERY HIGH, BUT IT SHOULD BE BORNE IN MIND THAT THEY ARE BASED ON RENT LEVELS OBTAINING IN 1941, SOME 36 YEARS AGO, MR. SCOTT SAID.

+ IN MONEY TERMS, BY COMPARISON, THE PROPOSAL WOULD MEAN AN AVERAGE INCREASE OF THE ORDER OF $20 PER MONTH IN THE CASE OF A DOMESTIC UPPER TENEMENT FLOOR, AND OF $110 PER MONTH FOR A NON-DOMESTIC GROUND TENEMENT FLOOR.

+WHERE SUBLETTING OCCURS IN DOMESTIC TENEMENT FLOORS IT IS USUAL TO FIND THREE OR FOUR FAMILIES SHARING, SO THAT THE INCREASE IN RENT PER FAMILY WOULD BE SOME $5 TO $7 PER MONTH ONLY.+

MR. SCOTT SAID TENANCIES WHICH WOULD BE AFFECTED INCLUDED 6,500 TENEMENT FLOORS, 500 FLATS AND 3,000 NON-DOMESTIC TENEMENT FLOORS.

FOR OVER 20 YEARS UP UNTIL 1976, PERMITTED RENTS REMAINED UNALTERED AND, AS A RESULT, THEY NOW STOOD AT AROUND ONE FIFTH OF FAIR MARKET RENTS.

+ THE SMALL INCREASE PROPOSED WOULD BRING RENTS UP TO ABOUT ONE QUARTER OF FULL MARKET RENTS, HE SAID,

/TURNING TO

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