XN000022-1981-11-20 — Page 3

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FRIDAY, NOVEMBER 20, 1981

UNDER THIS PROPOSAL, THE MAXIMUM RENT INCREASE IN RESPECT OF SUB-TENANCIES WILL BE LIMITED TO HALF THE DIFFERENCE BETWEEN

THE CURRENT RENT AND THE FAIR MARKET RENT, SUBJECT TO THE INCREASE NOT EXCEEDING 30 PER CENT OF THE CURRENT RENT.

THE BILL ALSO SEEKS TO PUT INTO EFFECT THE RECOMMENDATIONS OF THE COMMITTEE OF REVIEW IN RESPECT OF CASES IN WHICH THE LANDLORD SEEKS POSSESSION OR OPPOSES THE GRANT OF A NEW TENANCY, BECAUSE HE INTENDS TO REBUILD THE PREMISES. THE FOLLOWING GUIDELINES ARE PROVIDED FOR THE DETERMINATION OF SUCH CASES.

(A)

(B)

THE REBUILDING MUST RESULT IN A MATERIAL INCREASE IN THE NUMBER OF DWELLINGS FOR DOMESTIC USE OR IN ACCOMMODATION FOR NON-DOMESTIC USE, AND IN THE CASE OF A DEVELOPMENT FOR NON-DOMESTIC PURPOSES THE SITE MUST BE SUITABLE FOR THE PROPOSED DEVELOPMENT- OR

THE REBUILDING MUST BE DESIRABLE FOR ENVIRONMENTAL REASONS- OR

(C) THE EXISTING BUILDING MUST BE BEYOND

ECONOMIC REPAIR.

IN ADDITION, PROVISION IS MADE FOR THE IMPOSITION OF CONDITIONS, PARTICULARLY IN RELATION TO COMPENSATION, THE LODGING OF PLANS, CONTROL OF THE NUMBER OF DWELLINGS, VARIATIONS IN THE PLANS AND TIMING OF THE REDEVELOPMENT. PENALTIES ARE PROVIDED FOR FAILURE

TO COMPLY WITH THE CONDITIONS IMPOSED.

THE BILL PROPOSES THAT A MINIMUM AMOUNT OF COMPENSATION SHOULD BE PAYABLE TO TENANTS DISPOSSESSED AND THAT THIS SHOULD BE RELATED TO THE LENGTH OF THE TENANT'S RESIDENCE.

IT IS PROPOSED THAT WHERE A TENANT HAS BEEN IN OCCUPATION FOR AT LEAST TWO YEARS, THE MINIMUM COMPENSATION PAYABLE WILL BE EQUAL TO THE RATEABLE VALUE OF THE PREMISES. THIS MINIMUM AMOUNT IS TO INCREASE TO 1.5 TIMES THE RATEABLE VALUE WHERE THE TENANT HAS BEEN IN OCCUPATION FOR BETWEEN THREE AND FIVE YEARS, AND TWICE THE RATEABLE VALUE WHEN THE PERIOD OF OCCUPATION EXCEEDS FIVE YEARS.

A FURTHER PROVISION IN THE BILL RELATES TO THE RATIONALISATION OF JUDICIAL FUNCTIONS UNDER THE ORDINANCE.

IN ORDER TO PROVIDE A LESS FORMAL AND RELATIVELY INEXPENSIVE FORUM, MOST OF THE JUDICIAL FUNCTIONS UNDER THE ORDINANCE ARE TO BE VESTED IN OR TRANSFERRED TO THE LANDS TRIBUNAL. ACCORDINGLY, THE TENANCY TRIBUNAL AND THE RENT TRIBUNAL ARE TO BE ABOLISHED.

CRIMINAL SANCTIONS UNDER THE ORDINANCE WILL, HOWEVER, CONTINUE TO BE HANDLED BY THE COURTS. AND APPEALS ON POINTS OF LAW UNDER THE ORDINANCE WILL REMAIN WITHIN THE JURISDICTION OF THE COURT OF APPEAL.

/THE COMMISSIONER