XN000022-1979-05-09 — Page 10

WEDNESDAY, MAY 9, 1979

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REFERRING TO THE RENT INCREASES IN PREWAR BUILDINGS FROM THE CURRENT LEVEL OF THREE TIMES AND SIX TIMES THE 1941 STANDARD RENT IN DOMESTIC AND NON-DOMESTIC PREMISES TO FOUR TIMES AND EIGHT TIMES RESPECTIVELY, MR. SCOTT SAID THERE WAS A SAFEGUARD PROVIDED IN THAT A TENANT SHOULD NOT BE REQUIRED TO PAY MORE THAN THE FAIR MARKET RENT.

A CLAUSE ALSO ENABLED A TENANT, ON RECEIPT OF A NOTICE OF INCREASE OF RENT, TO SEEK FROM THE COMMISSIONER OF RATING AND VALUATION, A CERTIFICATE OF FAIR MARKET RENT.

ON THE PROPOSAL TO INCREASE THE PERIOD OF SERVING THE NOTICE OF TERMINATION FROM SIX MONTHS TO 12 MONTHS, MR. SCOTT SAID IT WAS RECOGNISED THAT TENANTS IN POSTWAR DOMESTIC PREMISES WHOSE TENANCIES WERE ABOUT TO EXPIRE MIGHT NEED A LONGER PERIOD TO DISCUSS TERMS OF RENEWAL WITH THE IR LANDLORDS OR TO MAKE OTHER ARRANGEMENTS.

THIS PROPOSAL TOOK EFFECT FROM THE DATE OF GAZETTING OF THE BILL ON MAY 4.

COMMENTING ON THESE PROPOSALS, MR. SCOTT SAID A CAREFUL INVESTIGATION OF THE SUPPLY OF AND DEMAND FOR PRIVATE SECTOR HOUSING, THE TREND TOWARDS INCREASING HOME OWNERSHIP, THE ACCELERATING PUBLIC HOUSING PROGRAMME AND THE LEVEL OF RENTS ON RENEWAL OF LEASES WAS CARRIED OUT.

THERE HAD CLEARLY BEEN SOME CASES OF SUBSTANTIAL INCREASE IN RENT FOR LARGE FLATS AND LUXURY HOUSES, DUE MAINLY TO THE GROWING NUMBER OF OVERSEAS COMPANIES AND BUSINESS EXPAND ING OR SETTING UP OFFICES IN HONG KONG, MR. SCOTT EXPLAINED.

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BUT, HE STRESSED, THE REVIEW SHOWED THAT THE GENERAL LEVEL OF INCREASES FOR SMALL FLATS THE GREAT MAJORITY OF UNCONTROLLED PREMISES BUILT AFTER 1973 --- WAS NOT SIGNIFICANTLY ABOVE THE LEVEL PERMITTED UNDER RENT CONTROL LEGISLATION, NOR WAS IT SIGNIFICANTLY OUT OF LINE WITH OTHER PRICE INCREASES.

THERE ARE ABOUT 37,300 TENANCIES IN POSTWAR PRIVATE PREMISES WHICH ARE NOT SUBJECT TO RENT OR TENANCY CONTROLS.

MR. SCOTT ALSO POINTED OUT THAT THE REVIEW HIGHLIGHTED THE VERY SUBSTANTIAL PRODUCTION OF BOTH PRIVATE AND PUBLIC SECTOR HOUSING OF 65,000 UNITS A YEAR FOR THE NEXT TWO YEARS - AN INCREASE OF NEARLY EIGHT PER CENT A YEAR TO THE TOTAL HOUSING STOCK IN HONG KONG.

FURTHERMORE HE ADDED, THE GOVERNMENT WAS ACTIVELY PURSUING WAYS OF INCREASING THE QUANTITY OF LAND TO BE MADE AVAILABLE FOR BUILDING FLATS, IN PARTICULAR MEDIUM AND LARGE FLATS AND OF REDEVELOP ING MORE INTENSIVELY GOVERNMENT'S EXISTING RESIDENTIAL SITES.

+I DO NOT CONSIDER THAT FURTHER EXTENSION OF RENT CONTROL IS NECESSARY BEYOND THE MEASURES I HAVE OUTLINED, BUT I SHALL CONTINUE TO KEEP A CLOSE WATCH ON HOUSING PRODUCTION AND RENT LEVELS AND IF NECESSARY, FURTHER MEASURES WILL BE PROPOSED TO THIS COUNCIL, HE SAID.

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