XN000022-1984-05-16 — Page 7

WEDNESDAY, MAY 16, 1984

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MOST TENANTS STILL GET SECURITY OF TENURE LIAO

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THE SECRETARY FOR HOUSING, MR DONALD LIAO EMPHASISED TODAY THAT THE PROPOSALS UNDER THE LANDLORD AND TENANT (CONSOLIDATION) (AMENDMENT) BILL 1984 WERE INTENDED SIMPLY TO CARRY THROUGH THE DISMANTLING OF RENT CONTROL, +AT A REGULATED PACE WITHIN A REASONABLE SPAN OF TIME, BUT WITH THE LEAST POSSIBLE ADVERSE SOCIAL CONSEQUENCES.+

+ I SHOULD ALSO REITERATE THAT THE MAJORITY OF PROTECTED TENANTS WILL CONTINUE TO ENJOY THE DUAL SAFEGUARDS OF SECURITY OF TENURE, AND CONTROL ON RENT INCREASES LIMITED TO A MAXIMUM OF 30 PER CENT OF CURRENT RENT OVER TWO YEARS, HE SAID, WHILE MOVING THE SECOND READING OF THE BILL.

MR LIAO SAID THAT FOR A TENANT OF CONTROLLED PREMISES, NO STEP TOWARDS DECONTROL WAS TOO SMALL, WHEREAS MOST, IF NOT ALL, LANDLORDS OF SUCH PREMISES WOULD LIKE TO SEE THE ABOLITION OF THE LEGISLATION ALTOGETHER, SOONER, RATHER THAN LATER.

+1 AM AFRAID THAT THE CONFLICT OF VIEWS AS BETWEEN LANDLORD AND TENANT WILL REMAIN EVER PRESENT. IN THE PRESENT SITUATION, HOWEVER I BELIEVE THAT THE PROPOSALS ARE ABOUT RIGHT, HAVING REGARD TO THE INTERESTS OF BOTH LANDLORDS AND TENANTS, + HE SAID.

HE RECALLED THAT WHEN BLANKET RENT CONTROL MEASURES WERE APPLIED IN 1979, IT WAS ANNOUNCED THAT THERE WOULD BE A REVIEW OF THE OVERALL PROVISIONS OF RENT CONTROL LEGISLATION AND THEIR EFFECTS ON THE SUPPLY AND DEMAND OF HOUSING,

THE PRINCIPAL CONCLUSION OF THE COMMITTEE OF REVIEW, WHICH WAS ANNOUNCED AND ACCEPTED BY THE GOVERNMENT IN EARLY 1981, WAS THAT RENT CONTROL SHOULD GRADUALLY BE PHASED OUT AS CIRCUMSTANCES PERMITTED.

+THIS BILL, THEREFORE, IS YET ANOTHER STEP IN THAT DIRECTION, MR LIAO SAID.

HE EXPLAINED THAT THE GENERAL SOFTENING OF THE RENTAL MARKET, PARTICULARLY IN 1983, AND THE IMPROVED SUPPLY AND DEMAND SITUATION FOR HOUSING BOTH SHOWED THAT RENT CONTROL WAS NOW LESS NEEDED,

+ IT WOULD BE OPPORTUNE THEREFORE TO CONTINUE THE PROCESS OF GRADUAL DECONTROL AND PUT RIGHT THE ANOMALY OF EXTREMELY LOW CONTROLLED RENTS IN ONE SECTOR, WHILE MAINTAINING THE EXISTING DEGREE OF PROTECTION TO THE MAJORITY OF TENANTS. AT THE SAME TIME, IT IS HOPED THAT THE IMPROVING ECONOMY WILL STIMULATE PROPERTY DEVELOPMENT AND PRODUCE MORE HOUSING FOR THE FUTURE,+ HE SAID.

/THE MAIN