XN000022-1980-01-16 — Page 8

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WEDNESDAY, JANUARY 16, 1980

MR NEWBIGGING NOTED THAT CERTAIN SECTIONS OF THE COMMUNITY WOULD INEVITABLY FEEL HARD DONE BY IF THE BILL WAS PASSED. THEY INCLUDED RESPONSIBLE LANDLORDS WHO HAD NOT EXPLOITED THE MARKET TO THE ULTIMATE EXTENT CORPORATIONS AND SOME INDIVIDUALS WHO MIGHT BE UNABLE TO OBTAIN POSSESSION OF RESIDENTIAL PREMISES FOR THEIR OWN USE- GENUINE INVESTORS WHO MIGHT FIND THEMSELVES LIMITED TO A GROWTH IN RENTS SUBSTANTIALLY LESS THAN THE LEVEL OF INFLATION- AND OTHER GENUINE INVESTORS WHO ACCEPTED, AND ACTED UPON, AN UNDERTAKING GIVEN IN THE LEGISLATIVE COUNCIL CHAMBER SOME FOUR AND A HALF YEARS AGO BY THE THEN SECRETARY FOR HOUSING, ONLY TO FIND THIS UNDERTAKING NOW BEING BROKEN,

HOWEVER, MR NEWBIGGING SAID HIS FUNDAMENTAL CONCERN WAS THAT WE SHOULD CURE THE DISEASE ITSELF RATHER THAN MERELY TREATING ITS SYMPTOMS.

ON THE PROPOSED LEGISLATION, MR NEWBIGGING URGED THE GOVERNMENT TO CONSIDERI

* SOME FLEXIBILITY ON THE 21 PER CENT INCREASE IN RENTS

PERMITTED OVER A TWO-YEAR PERIOD IF THE INFLATION RATE CONTINUES AT ITS PRESENT LEVEL, OR ACCELERATES, A SIMPLE INDEXED FORMULA MIGHT BE APPROPRIATE-

* WHETHER THERE IS LIKELY TO BE A CONSEQUENT SLOWING DOWN

OF THE NUMBER OF RESIDENTIAL UNITS BECOMING AVAILABLE FOR RENTAL - AND

* WHETHER, BY NOT EXEMPTING UNITS AT THE VERY TOP END OF

THE MARKET, INTERNATIONAL COMPANIES MORE CONCERNED WITH THE ACTUAL" AVAILABILITY OF RENTED ACCOMMODATION THAN THE LEVEL OF RENTS, MAY BE INHIBITED FROM ESTABLISHING BRANCHES OR REPRESENTATIVE OFFICES IN HONG KONG,

HE ALSO SUGGESTED THAT THE GOVERNMENT SHOULD MAKE LAND AVAILABLE IN BULK - NOT IN DRIBS AND DRABS, HE STRONGLY FELT THAT THIS SHOULD BE LINKED TO THE PROPOSED LEGISLATION FOR A NUMBER OF REASONS.

FIRSTLY, HE SAID, HE DID NOT ACCEPT THE OFTEN-VOICED CONTENTION THAT THE CAPACITY OF THE CONSTRUCTION INDUSTRY IS THE LIMITING FACTOR ON PRODUCING INCREASED RESIDENTIAL ACCOMMODATION. BECAUSE, HE SAID, THE PRINCIPAL LIMITING FACTOR IS INSUFFICIENT LAND BEING MADE AVAILABLE.

SECONDLY, THE FACT THAT THE GOVERNMENT SOLD NEARLY 20 PER CENT LESS LAND OVERALL IN 1979 THAN IN 1978 AND THAT, WITHIN THE TOTAL FIGURE, THE DECLINE OF THE RESIDENTIAL COMPONENT WAS EVEN GREATER, DOES NOT AUGUR WELL FOR THE FUTURE.

THE THIRD REASON HE GAVE WAS THAT HE BELIEVED THERE MIGHT BE SCOPE FOR INCREASING THE SUPPLY OF DOMESTIC ACCOMMODATION BY INCREASING THE PERMITTED PLOT RATIO IN SOME AREAS.

/LASTLY,