XN000022-1980-01-30 — Page 5

WEDNESDAY, JANUARY 30, 198c

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BY LUXURY FLATS, MR LO SAID HE MEANT THOSE WHICH EXCEED 2 300 SQUARE FEET IN GROSS AREA AND $100 000 IN RATEABLE VALUE ACCORDING TO THE 1977 ASSESSMENT.

ON THE CONTROL OF PREMISES RENTED BY THE GOVERNMENT, MR LO POINTED OUT THAT GOVERNMENT HAS BY FAR THE LARGEST LAND BANK, NO SHORTAGE OF FUNDS AND CAN BUILD ALMOST UNLIMITED NUMBER OF FLATS AT ANY TIME FOR ITS EMPLOYEES..

HOWEVER, THE GOVERNMENT DOES NOT CHOOSE TO DO THAT AND, INSTEAD, CHOOSES TO GO INTO THE MARKET TO ENTER INTO BARGAINS WITH OPEN EYES AND NOW BY THIS BILL SEEKS TO NEGATE THE EFFECT OF ITS OBLIGATIONS WHICH WERE FREELY ENTERED INTO, HE SAID.

ON RENT CONTROL FOR CORPORATIONS, MR LO SUGGESTED THAT ONE METHOD TO PREVENT LANDLORDS FROM INSISTING ON TENANTS TAKING NEW TENANCIES IN THE NAME OF NEWLY FORMED COMPANIES WOULD BE TO EXTEND CONTROL TO DOMESTIC TENANCIES TAKEN OUT ONLY BY THOSE CORPORATIONS FORMED, SAY, WITHIN FIVE YEARS OF THE DATE OF THE LEASE, NOT BEING A SUBSIDIARY OF ANOTHER CORPORATION FORMED OUTSIDE THAT PERIOD.

HE NOTED REGRETFULLY THAT DESPITE A MAJORITY OF UNOFFICIALS BEING IN FAVOUR OF NOT CONTROLLING FLATS RENTED OUT TO THE GOVERNMENT, CONSULATES OR CORPORATIONS OR LUXURY FLATS, THE SECRETARY FOR HOUSING HAS DECIDED TO MOVE NO AMENDMENTS IN THESE ASPECTS.

THE HON FRANCIS TIEN

MR TIEN EXPRESSED CONCERN THAT THE TEMPORARY POWERS AS PROVIDED IN THE BILL SHOULD NOT BECOME PERMANENT, THROUGH HABIT, CUSTOM OR GOVERNMENTAL CONVENIENCE.

+WE, IN THIS COUNCIL MUST NOT WRITE A BLANK CHEQUE RESULTING IN OUR RE-APPEARANCE HERE IN 1982 WITH YET ANOTHER MAGIC NUMBER ALLOWING A FURTHER EXTENSION, HE SAID.

HE URGED THE GOVERNMENT TO EXPLAIN WHY THE PERMITTED INCREASE IN RENTS AFTER TWO YEARS SHOULD BE LIMITED TO 21 PER CENT.

HE ALSO CALLED ON THE GOVERNMENT TO AMEND THE CLAUSE WHEREBY THE LANDLORD HAS TO PROVE HARDSHIP IN ORDER TO REPOSSESS HIS PROPERTY.

IN THIS RESPECT, MR TIEN SUGGESTED STIFFER PENALTIES, SUCH AS POSSIBLE IMPRISONMENT FOR THE FIRST OFFENCE, IN ORDER TO PREVENT LANDLORDS ABUSING THEIR POSITION.

ON THE PROPOSAL THAT PREMISES MAY BE RECOVERED WHERE THEY ARE USED FOR PURPOSES DESCRIBED AS IMMORAL OR ILLEGAL, MR TIEN DREW THE GOVERNMENT'S ATTENTION TO THE EXISTENCE OF SOME 15 SO-CALLED 'MOTELS IN KOWLOON TONG, AS THESE PROPERTIES COULD BE CONSIDERED, ACCORDING TO TASTE, AS 'RESIDENTIAL OR COMMERCIAL'.

THE HON