XN000022-1981-05-27 — Page 10

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WEDNESDAY, MAY 27, 1981

IN ADDITION, THERE ARE MORE REMUNERATIVE TASKS TO WHICH SCARCE STAFF RESOURCES IN THE RATING AND VALUATION DEPARTMENT CAN BE PUT, MR WONG ADDED.

REFERRING TO MR WONG'S COMMENTS ON THE BACK-DATING OF INTERIM VALUATIONS, THE FINANCIAL SECRETARY SAID THAT WHILE MR WONG'S INTERPRETATION OF THE POLICY CHANGE PROPOSED IN CLAUSE 19 IS CORRECT IN SUBSTANCE, I WOULD GO NO FURTHER THAN TO SAY THAT THE COMMISSIONER OF RATING AND VALUATION WILL ENDEAVOUR TO ASSESS NEW PREMISES TO RATES AS SOON AS POSSIBLE FOLLOWING COMPLETION.

+SECONDLY, I CONFIRM THAT THE GOVERNMENT WOULD BE PREPARED TO REVIEW THE MINIMUM RATEABLE VALUE FIGURE IN THE COURSE OF THE NEXT GENERAL REVALUATION, WHENEVER THAT MAY BE, BUT THE PURPOSE OF HAVING THE MINIMUM FIGURE IS ADMINISTRATIVE CONVENIENCE.

+ IT IS NOT INTENDED, IN ITSELF, TO PROVIDE A MEASURE OF EXEMPTION FOR SMALL TENEMENTS ON SOCIAL OR OTHER GROUNDS.+

INCREASES ALLOWED TO BRING RENTS CLOSER TO MARKET LEVEL

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RENT INCREASES FOR PREWAR DOMESTIC AND BUSINESS PREMISES ARE ALLOWED SO AS TO BRING THE RENTS OF THESE PREMISES CLOSER TO MARKET LEVEL UNDER A MOTION ADOPTED BY THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

THE MOTION SOUGHT TO INCREASE THE PERMITTED RENTS OF PREWAR DOMESTIC PREMISES FROM THE EXISTING LEVEL OF SIX TIMES THE STANDARD RENT (1.E. RENT PASSING IN 1941) TO EIGHT TIMES AND THAT OF PREWAR BUSINESS PREMISES FROM 12 TO 18 TIMES THE STANDARD RENT PROVIDED THAT THE PREMITTED RENT DID NOT EXCEED THE FAIR MARKET RENT.

MOVING THE MOTION IN THE COUNCIL TODAY, THE SECRETARY FOR HOUSING, THE HON DONALD LIAO SAID THE RELAXATION WOULD RESULT IN AN AVERAGE INCREASE OF LESS THAN $100 A MONTH FOR A DOMESTIC PREMISES USUALLY SHARED BY THREE FAMILIES, BRINGING THE RENT FROM ABOUT 21 PER CENT TO 27 PER CENT OF ITS MARKET RENT. ABOUT 4 200 DOMESTIC UNITS IN PREWAR BUILDINGS ARE LIKELY TO BE AFFECTED.

ANUSLEVE

ON PREWAR BUSINESS PREMISES, MR LIAO SAID THE AVERAGE INCREASE FOR A TYPICAL COMMERCIAL GROUND TENEMENT FLOOR WOULD BE ABOUT $540 A MONTH, BRINGING THE RENT FROM ABOUT 27 PER CENT TO 38 PER CENT OF ITS FAIR MARKET RENT, ABOUT 1 800 BUSINESS UNITS ARE LIKELY TO BE AFFECTED.

UNDER THIS MOTION, LANDLORDS WILL BE REQUIRED TO SERVE AT LEAST ONE MONTH'S NOTICE OF THE INCREASED RENTS TO THE IR TENANTS. IN THE CASE OF PUBLIC ASSISTANCE RECIPIENTS, ANY INCREASE IN RENT WILL BE OFFSET BY INCREASES IN RENT ALLOWANCES UP TO THE PERMITTED MAXIMA.

MR LIAO

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