XN000022-1980-01-16 — Page 3

WEDNESDAY, JANUARY 16, 1980

UNREASONABLE RENT INCREASES

A MAJOR FACTOR

IN EXTENDING RENT CONTROL TO ALL DOMESTIC PREMISES

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INCREASING EVIDENCE OF UNREASONABLE RENT INCREASES WAS ONE OF THE MAIN FACTORS LEADING TO THE DECISION OF THE GOVERNOR-IN-COUNCIL ON DECEMBER 18 THAT RENT CONTROLS SHOULD BE IMPOSED ON THE REMAINING UNCONTROLLED PRIVATE DOMESTIC PREMISES IN HONG KONG,

THIS WAS SAID TODAY BY THE SECRETARY FOR HOUSING, THE HON ALAN SCOTT, IN THE LEGISLATIVE COUNCIL DURING THE SECOND READING OF THE LANDLORD AND TENANT (CONSOLIDATION) (AMENDMENT) BILL, 1980.

HE SAID THE BILL PROPOSED THAT CONTROLS BE EXTENDED TO THE FOLLOWING TENANCIES:

* IN BUILDINGS CERTIFIED FOR OCCUPATION AFTER DECEMBER 14,

1973-

* WHERE A LEASE OF THREE YEARS OR MORE HAD BEEN ENTERED

INTO AFTER DECEMBER 31, 1975- AND

* WHERE THE TENANT WAS A PUBLIC BODY, CORPORATION, FOREIGN

OR COMMONWEALTH GOVERNMENT, PARTNERSHIP OR FIRM.

THE BILL ALSO PROPOSES THAT THE PART | RENT CONTROLS, AT PRESENT DUE TO EXPIRE ON DECEMBER 14, 1982, SHOULD NOW BE BROUGHT BACK TO DECEMBER 18 NEXT YEAR.

HE SAID WHEN GOVERNMENT IN THE PAST HAS INTRODUCED RENT CONTROLS IT HAS ALWAYS BEEN HOPED THAT THEY WOULD BE SHORT-TERM MEASURES AND GOVERNMENT CANNOT VIEW WITH EQUANIMITY THE INEQUITIES AND ANOMALIES WHICH ARE CAUSED AS BETWEEN LANDLORDS AND LANDLORDS, LANDLORDS AND TENANTS AND TENANTS AND TENANTS.

+THESE HAVE TO BE ACCEPTED IN THE SHORT-TERM, BUT THE PRESENT CONTROLS ARE ALREADY UP TO 10 YEARS OLD+.

THEREFORE, HE SAID, IT WAS INTENDED TO CONDUCT A WIDE-RANG ING REVIEW OF THE RENT-CONTROL LEGISLATION.

THE TWO-YEAR +LIFE+ OF THE PART II RENT CONTROLS WOULD ENABLE THE REVIEW GROUP TO DO A THOROUGH JOB AND PRODUCE PROPOSALS WHICH COULD BE FULLY CONSIDERED IN GOOD TIME FOR IMPLEMENTATION BY THE END OF 1981,

+! HOPE THAT THE TASK OF REVIEW CAN BE COMPLETED WELL WITHIN THE TIME ALLOWED, BUT THERE IS NEED FOR WIDE CONSULTATION AND ALTHOUGH A FEW OF THE SEVERAL INTERESTS INVOLVED ARE REPRESENTED BY ASSOCIATIONS, SOME ARE NOT, SAID MR SCOTT,

HE CLARIFIED THE FOLLOWING POINTS CONCERNING THE RENT-CONTROL PROPOSALS:

NEW FLATS:

RENTS FOR FIRST LETTINGS OF NEWLY-BUILT PREMISES, AND FRESH LETTINGS OF EXISTING PREMISES, WILL NOT BE CONTROLLED.

/POSSESSION: