XN000022-1981-05-08 — Page 2

FRIDAY, MAY 8, 1981

STATEMENT ON THE REPORT OF THE COMMITTEE OF REVIEW

LANDLORD AND TENANT (CONSOLIDATION) ORDINANCE

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IN ANNOUNCING THE PUBLICATION OF THE REPORT, A GOVERNMENT SPOKESMAN STATED THAT IT HAD BEEN FULLY CONSIDERED BY THE GOVERNOR-IN-COUNCIL, AND THAT THE RECOMMENDATIONS IT CONTAINS ON FUTURE POLICY FOR RENT CONTROL LEGISLATION ARE GENERALLY ACCEPTED.

THE GOVERNMENT DOES NOT CONSIDER THAT THIS IS THE RIGHT TIME FOR A SIGNIFICANT MOVE TO PHASE OUT RENT CONTROL. ONE OF THE MAIN RECOMMENDATIONS OF THE COMMITTEE WAS THAT AS SOON AS CIRCUMSTANCES PERMIT AND SUBJECT TO ECONOMIC AND SOCIAL CONDITIONS RENT CONTROL SHOULD BE PHASED OUT. WHILE GOVERNMENT ACCEPTS THE RECOMMENDATION IN PRINCIPLE, IT DOES NOT THINK THAT PRESENT CIRCUMSTANCES ARE RIGHT FOR SUCH A MOVE.

PART II OF THE LANDLORD AND TENANT (CONSOLIDATION) ORDINANCE IS DUE TO EXPIRE ON DECEMBER 18, 1981. GOVERNMENT CONSIDERS THAT THE EXISTING SYSTEM OF PROTECTION FOR POSTWAR PREMISES SHOULD REMAIN, AND A BILL WILL THEREFORE SHORTLY BE PUT FORWARD IN THE LEGISLATIVE COUNCIL PROPOSING THE EXTENSION OF PART II BY A FURTHER TWO YEARS.

IN EXTENDING THE LIFE OF THE LEGISLATION, CERTAIN AMENDMENTS WILL BE PROPOSED WITH THE OBJECT OF REVISING THE SYSTEM OF PERMITTED INCREASES AND CONTROLS, BROADLY IN ACCORD WITH THE COMMITTEE'S RECOMMENDATIONS.

THESE WILL INCLUDE:

(A)

THE RAISING OF THE MAXIMUM PERMITTED INCREASE IN CONTROLLED RENTS FROM THE PRESENT 21 PER CENT BIENNIALLY (THAT IS, EQUAL TO 10 PER CENT PER ANNUM) TO 30 PER CENT BIENNIALLY (THAT IS, EQUAL TO 14 PER CENT PER ANNUM)-

(B) THE EXCLUSION FROM THE PROVISIONS OF PART || OF -

(1) PREMISES IN BUILDINGS ISSUED WITH AN

OCCUPATION PERMIT AFTER THE

COMMENCEMENT DATE OF THE AMENDING LEGISLATION=

(11) PREMISES WITH A CURRENT RATEABLE

VALUE (BASED ON 1976 RENTAL LEVELS) OF $80 000 OR MORE, WITH EFFECT FROM THE EXPIRY OF THE PRESENT PART II, (THAT IS AT MID-NIGHT ON DECEMBER 18, 1981)-

/(III) PREMISES