XN000022-1981-05-08 — Page 3

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FRIDAY, MAY 8, 1981

(111) PREMISES WITH A CURRENT RATEABLE

VALUE OF $60 000 OR MORE, WITH EFFECT FROM MID-NIGHT ON DECEMBER 18, 1982.

THE RAISING OF THE PERCENTAGE CEILING OF PERMITTED INCREASES IN RENT FOR CONTROLLED PREMISES IS DESIGNED TO SLOW DOWN THE RATE AT WHICH SUCH RENTS HAVE BEEN FALLING BEHIND MARKET RENTS.

THE EXCLUSION OF NEW PREMISES FROM CONTROLS IS INTENDED TO ENCOURAGE DEVELOPERS TO PRODUCE FLATS FOR THE RENTAL MARKET, AND TO COUNTERACT ANY TENDENCY FOR OWNERS OF NEW PREMISES TO HOLD THEM VACANT FOR SPECULATIVE REASONS.

THE EXCLUSION IN TWO STAGES OF PREMISES HAVING A CURRENT RATEABLE VALUE OF $60 000 OR MORE TAKES ACCOUNT OF THE ARGUMENT. NOTED BY THE COMMITTEE, THAT GOVERNMENT SHOULD SEEK TO INTERVENÉ CNLY TO ASSIST THOSE CONSIDERED TO BE IN NEED OF PROTECTION, NAMELY THE MIDDLE AND LOWER INCOME GROUPS.

THE EXCLUSION OF PREMISES WITH RATEABLE VALUES OF $80 000 OR MORE WOULD AFFECT ABOUT 1 000 TENANCIES, WITH A CURRENT RENTAL LEVEL OF ABOUT $25 000 PER MONTH OR MORE. PREMISES WITH A RATEABLE VALUE FROM $60 000 TO $80 000 CARRY CURRENT RENTALS OF ABOUT $18 000 TO $25 000 PER MONTH AND SOME 1 500 MORE TENANCIES WOULD BE AFFECTED BY THIS EXCLUSION.

THE COMMITTEE'S REPORT INCLUDES AN IMPORTANT RECOMMENDATION, WHICH WILL BE FULLY EXAMINED IN CONSULTATION WITH THE JUDICIARY, FOR THE EXPANSION OF THE JURISDICTION OF THE LANDS TRIBUNAL TO PROVIDE FOR MEDIATION BETWEEN LANDLORDS AND SITTING TENANTS OF PREMISES TO BE EXCLUDED FROM THE PART I CONTROLS.

THE MAIN PURPOSE OF SUCH A MEASURE WOULD BE TO ENSURE A REASONABLE DEGREE OF SECURITY FOR A SITTING TENANT WHO WISHES TO EXTEND HIS TENANCY AND IS PREPARED TO PAY A FAIR MARKET RENT.

THE SPOKESMAN CONCLUDED BY RECORDING THE APPRECIATION OF GOVERNMENT OF THE VERY CONSIDERABLE WORK DONE BY THE COMMITTEE IN EXAMINING THESE COMPLEX AND IMPORTANT PROBLEMS.

HE SAID THAT, IN ADDITION TO THE MAIN RECOMMENDATIONS ON SECURITY OF TENURE AND CONTROL OF RENTS, THE COMMITTEE, IN ITS COMPREHENSIVE REPORT OF ALMOST 300 PAGES, HAD MADE A LARGE NUMBER OF DETAILED RECOMMENDATIONS CONCERNING THE LEGAL AND ADMINISTRATIVE ASPECTS OF RENT CONTROL AND SECURITY OF TENURE, WHICH WILL RECEIVE MOST CAREFUL STUDY BY GOVERNMENT.

NOTE TO EDITORS:

THE REPORT IS NOW ON SALE AT GOVERNMENT PUBLICATION CENTRES IN CHINESE AND ENGLISH VERSIONS AT $15 A COPY.

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