XN000022-1983-04-27 — Page 34

WEDNESDAY, APRIL 27, 1983.

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MR LIAO SAID THE MODIFICATION OF EXISTING SYSTEM OF RENT INCREASE CONTROL WAS INTENDED TO PREVENT EXCEPTIONALLY LOW CONTROLLED RENTS FROM FALLING EVEN FURTHER BELOW MARKET LEVEL, AND TO MAKE POSSIBLE THE EVENTUAL RAISING OF SUCH RENTS CLOSER TO MARKET LEVELS.

+UNDER THE REVISED SYSTEM, ABOUT 7 000 TENANGIES, OR FIVE PER CENT OF ALL PROTECTED SOLE TENANCIES, WILL FACE A LARGER INCREASE THAN UNDER THE PRESENT ARRANGEMENTS IN ORDER THAT THE IR RENTS MAY BE BROUGHT UP TO AT LEAST 30 PER CENT OF THE PREVAILING MARKET RENT.

+THESE INCREASES, HOWEVER, WILL BE ON VERY LOW BASE RENTS WHICH HAVE GENERALLY BEEN SUBJECT TO CONTROL FOR MANY YEARS, AND THUS ARE NOT EXPECTED TO BE SIGNIFICANT IN MONEY TERMS.+

HE SAID TENANTS AFFECTED BY THIS PROPOSAL WOULD BE THOSE WHOSE CURRENT RENTS WERE 23 PER CENT OR LESS OF PREVAILING MARKET RENT.

FOR THE REMAINING 95 PER CENT OF PROTECTED TENANCIES, HE SAID, PERMITTED RENT INCREASE REMAIN AS DETERMINED BY THE EXISTING SYSTEM.

ON THE PROPOSAL TO EXCLUDE FRESH LETTING FROM RENT INCREASE CONTROL UNDER PART II, MR LIAO SAID THIS SHOULD ENCOURAGE LANDLORDS TO RELEASE VACANT PREMISES INTO THE RENTAL MARKET, THUS HELPING TO STIMULATE THE SUPPLY OF FLATS FOR RENT.

+THIS MEASURE IS EXPECTED TO HAVE A POSITIVE STABILISING EFFECT ON THE MOVEMENT OF RENTS TO THE BENEFIT OF PROSPECTIVE TENANTS, HE SAID.

ON THE EXCLUSION OF TENANCIES OF PREMISES WITH RATEABLE VALUES OF $50 000 OR MORE, HE SAID THIS WAS A CONTINUATION OF PROGRESSIVE DECONTROL OF LUXURY PREMISES, AS RECOMMENDED BY THE COMMITTEE OF REVIEW, ABOUT 1 100 TENANCIES WOULD BE AFFECTED BY THE PROPOSAL. OF THESE, SOME 80 PER CENT ARE HELD IN THE NAME OF CORPORATE BODIES, GOVERNMENTS AND SO ON.

MR LIAO SAID IT WAS GOVERNMENT'S INTENTION TO CONTINUE THIS PROCESS OF EXCLUDING LUXURY PREMISES FROM RENT CONTROL AND FURTHER PROPOSALS IN THIS REGARD WOULD BE MADE FOLLOWING THE INTRODUCTION OF NEW RATEABLE VALUES NEXT APRIL.

OTHER THAN THESE MEASURES IN PURSUIT OF DECONTROL, MR LIAO SAID, THERE WERE ALSO A NUMBER OF IMPROVEMENTS TO THE EXISTING LEGISLATION.

THESE INCLUDED PROVISION FOR SURRENDER BY AGREEMENT OF TENANCY PROTECTED UNDER PART II. RECOMMENDATION THAT A PRINCIPAL TENANT WHO HAS SUB-LET THE WHOLE OF A PREMISES SHOULD NOT BE ACCORDED SECURITY OF TENURE, STRENGTHENING OF THE EXISTING PROHIBITION ON LETTING OR SELLING OF PREMISES FOLLOWING RECOVERY OF POSSESSION, AND A PROPOSAL TO MAKE HARASSMENT WITH INTENT TO INDUCE A TENANT TO QUIT A CRIMINAL OFFENCE.

DEBATE ON THE BILL IS EXPECTED TO BE RESUMED ON MAY 25.

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