XN000022-1977-12-21 — Page 5

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WEDNESDAY, DECEMBER 21, 1977

NOTE TO EDITORS:

GOVERNOR RETURNING ON DECEMBER 30

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THE GOVERNOR, SIR MURRAY MACLEHOSE, IS EXPECTED TO RETURN

TO HONG KONG ON DECEMBER 30 AFTER SIX WEEKS IN THE UNITED KINGDOM.

SIR MURRAY WILL BE ACCOMPANIED BY LADY MACLEHOSE.

THE GOVERNOR AND LADY MACLEHOSE ARE DUE TO RETURN BY BA888

ON DECEMBER 30, E.T.A. 1755 HOURS.

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LANDLORD AND TENANT (CONSOLIDATION) (AMENDMENT) BILL PASSED

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THE LEGISLATIVE COUNCIL TODAY PASSED THE LANDLORD AND TENANT (CONSOLIDATION) (AMENDMENT) BILL 1977.

THE MAJORITY OF THE UNOFFICIALS WELCOMED AND SUPPORTED THE BILL AS +STRIK ING A SENSIBLE BALANCE+.

ONLY ONE UNOFFICIAL, REV. THE HON. PATRICK MCGOVERN, OPPOSED IT.

OPPOSING THE BILL AT THE RESUMED DEBATE, FATHER MCGOVERN SAID IT WOULD CONTINUE TO UNDO THE LIMITED MEASURE OF RENT CONTROL WHICH TOOK YEARS OF PUBLIC CLAMOUR TO PUSH THE GOVERNMENT TO INTRODUCE.

+1 HAVE SAID IT BEFORE AND I SAY IT AGAIN NOW, THERE IS NO SUCH THING IN HONG KONG AS A FAIR MARKET RENT. ALSO, IN SO FAR AS THE MARKET IS FREE IT IS UNFAIR TO THE TENANT, HE SAID.

HE POINTED OUT THAT IN SUPPORTING PAPERS GIVING THE GOVERNMENT'S ARGUMENTS FOR THE BILL, THE JORDS +FAIR MARKET RENT+ OCCURRED 13 TIMES, AND THE WORDS +FREE MARKET RENT+ TWICE, IN A CONTEXT WHERE IT WAS USED AS IF IT WAS THE SAME AS THE FORMER.

HE EXPLAINED THAT THERE IS IMBALANCE DETWEEN DEMAND FOR PRIVATE HOUSING AND SUPPLY OF HOUSING AT RENTS WHICH TENANTS CAN AFFORD BECAUSE OF SCARCITY OF BUILDING LAND. IT MUST THEREFORE REMAIN CONTROLLED IF IT IS TO TE EVEN PARTLY FAIR TO THE TENANT.

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FURTHERMORE THE PRIVATE SECTOR HAVE HAD THE IR CHANCE BUT THIS WAS SO ABUSED EY +RAPACIOUSLY RAISING RENTS THAT THEY BROUGHT RENT CONTROL CL. THEIR OWN HEADS.+ + HAVE NO REASON TO BELIEVE THAT THE PRIVATE SECTOR WOULD BE ANY DIFFERENT IF THEY GOT THE CHANCE AGAIN,+ HE SAID.

THE SECTOR MIGHT HAVE A FUNCTION. BUILDING EXPENSIVE OFFICES AND LUXURY HOUSING FOR EXECUTIVES BUT EVEN THEN THE COST OF THESE EXPENSIVE OFFICES AND FLATS WAS BEING PASSED ON TO CUSTOMERS.

/FATHER MCGOVERN