XN000022-1980-10-23 — Page 26

THURSDAY, OCTOBER 23, 1980

PROPOSAL FOR A COMMERCIAL RENT TRIBUNAL

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SOME MEANS OF REGULATION SHOULD BE INTRODUCED IN THE FORM OF AN ARBITRATION BODY OR A COMMERCIAL RENT TRIBUNAL, WHERE DISPUTES BETWEEN LANDLORDS AND TENANTS IN COMMERCIAL AND INDUSTRIAL PREMISES CAN BE SETTLED IN A REASONABLE MANNER.

THIS WAS ADVOCATED BY THE HON WONG PO-YAN IN THE LEGISLATIVE COUNCIL TODAY.

MR WONG SAID HOWEVER HE DID NOT RECOMMEND COMMERCIAL RENT CONTROL AT THIS STAGE BECAUSE OF ITS ATTENDANT EVILS AND, ONCE INSTITUTED, THE DIFFICULTY OF RETRACTING IT.

HE SAID THE TRADITIONAL ARGUMENT AGAINST COMMERCIAL RENT CONTROL IS THAT, IN A FREE MARKET, LANDLORDS AND TENANTS ARE ON EQUAL FOOTING, THAT IS, THEY ARE BOTH BUSINESSMEN AND SHOULD BE LEFT FREELY TO NEGOTIATE ACCEPTABLE RENT LEVELS.

BUT, HE POINTED OUT, THIS SORT OF IDEAL NEGOTIATION SITUATION RARELY OCCURS IN REAL LIFE.

+TAKE AN INDUSTRIALIST RENTING A FACTORY FOR EXAMPLE. BEFORE HE SIGNS ANY LEASE HE CAN BE SAID TO BE 'FREE' AS HE CAN ASSESS WHETHER THE RENT LEVELS BEING OFFERED WOULD BE BEARABLE.

+HOWEVER, ONCE HE HAS SIGNED THE LEASE, MOVED IN HIS MACHINERY AND EQUIPMENT, AND EMPLOYED HIS OWN WORKERS IN THE FACTORY, HE HAS A MUCH BIGGER STAKE IN HAND AND HIS 'FREEDOM' OF CHOICE WOULD BE VERY MUCH REDUCED WHEN THE LEASE COMES UP FOR RENEWAL.

+ THE REMOVAL COST AND DISRUPTION CAN BE SO BIG THAT HE WOULD NO LONGER BE ON EQUAL GROUND TO NEGOTIATE WITH HIS LANDLORD.

ADDED.

+SIMILARLY THIS APPLIES TO COMMERCIAL TENANTS AS WELL,✦ HE

ON INDUSTRIAL RELATIONS, MR WONG NOTED THAT THE SPATE OF LABOUR DISPUTES IN THE PAST YEAR SHOWS THAT THERE IS A GENERAL LACK OF COMMUNICATION, UNDERSTANDING AND TRUST BETWEEN THE MANAGEMENT AND STAFF OF MANY INDUSTRIAL ORGANISATIONS.

/+THERS WERE