XN000022-1981-07-08 — Page 8

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WEDNESDAY, JULY 8, 1981

HE QUOTED STATISTICS TO SHOW THAT OF THE 620 000 HOUSEHOLDS IN PRIVATE HOUSING IN MARCH 1980, 311 000 OR ABOUT 50 PER CENT WERE TENANTS, INDICATING THE IMPORTANT ROLE PLAYED BY PRIVATE LANDLORDS IN OUR OVERALL HOUSING SITUATION.

HE HOPED THAT THE RECONVENING OF THE WORKING PARTY TO REVIEW THE HOME OWNERSHIP SCHEME WOULD SOLVE THE HOUSING PROBLEMS OF THE MIDDLE CLASS WITHIN A REASONABLE TIME FRAME.

HE ALSO CALLED ON THE FINANCIAL COMMUNITY TO JOIN THE ESTABLISHED BANKS IN SUPPORTING THE SCHEME ON A MUCH LARGER SCALE THAN HITHERTO,

ON THE SUGGESTION THAT CHEAP LAND BE MADE AVAILABLE TO REDUCE THE COST OF HOUSING, MR BROWN CONTENDED THAT IT SHOULD NOT BE OVERLOOKED THAT IN THE PERIOD UP TO 1985 GOVERNMENT EXPENDITURE ON CAPITAL ACCOUNT WILL BE LARGELY FINANCED BY THE REVENUE YIELD FROM LAND SALES.

+ANY SIGNIFICANT REDUCTION IN THE PRICE OF LAND MUST RESULT IN EXPENDITURE ON CAPITAL ACCOUNT BECOMING MORE DEPENDENT ON THE SURPLUS ON RECURRENT ACCOUNT.

+THE CONSEQUENCES TO OUR TAX STRUCTURE AND GROWTH RATE WOULD BE SEVERE, HE SAID.

HE URGED THAT THE RECOMMENDATION OF THE SPECIAL COMMITTEE ON LAND PRODUCTION TO EXAMINE MORE CLOSELY THE ROLE OF THE PRIVATE SECTOR SHOULD BE TAKEN SERIOUSLY.

THERE IS OBVIOUSLY A NEED TO BALANCE THE DESIRE OF THE PRIVATE SECTOR FOR PROFITS AND THE RESPONSIBILITY OF GOVERNMENT TO PROTECT THE PUBLIC INTEREST, HE SAID.

+BUT IF THE WILL EXISTS THIS CAN SURELY BE ACHIEVED,+ HE ADDED.

THE HON CHAN KAM-CHUEN SAID A PIECE OF LEGISLATION IS ONLY GOOD WHEN IT IS FAIR TO ALL PARTIES AS FAR AS POSSIBLE.

HE POINTED OUT HOWEVER THAT A TOTAL VACANCY OF 17 000 FLATS AT THE END OF 1980 AND THE DEMOLITION OF A NEW AND UNOCCUPIED BUILDING JUST FOR THE SAKE OF CHANGING FROM DOMESTIC USE TO COMMERCIAL USE SHOW THAT RENT CONTROL IS AGAINST HUMAN NATURE AND INVESTMENT PRINCIPLES RESULTING IN A DWINDLING SUPPLY OF RENTAL ACCOMMODATION.

+RENT CONTROL ONLY BENEFITS THE SITTING TENANTS IN PROVIDING THEM WITH SECURITY OF TENURE AND A RENT LOWER THAN THE FAIR MARKET RENT.

+TO THOSE WHO DOUBT THE FAIRNESS OF THE 'FAIR MARKET RENT" THEY ARE ADVISED TO ENQUIRE ON THE ASKING RENT OF A SIMILAR FLAT WHICH IS IN THE SAME BUILDING OR ESTATE.

+THE PIECEMEAL