XN000022-1986-05-30 — Page 4

FRIDAY, MAY 30, 1986

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SINO-BRITISH LAND COMMISSION MEETING

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THE NINTH MEETING OF THE SINO-BRITISH LAND COMMISSION WAS HELD ON MAY 30, 1986. THE TWO SIDES REACHED AGREEMENT ON THE FORM AND CONTENT OF NEW LEASE DOCUMENTS.

THE TWO SIDES ALSO EXCHANGED PRELIMINARY VIEWS ON THE ARRANGEMENTS FOR THE EXTENSION OF NEW TERRITORIES LEASES PURSUANT TO THE PROVISIONS OF PARAGRAPH 2 OF ANNEX III TO THE SINO-BRITISH JOINT DECLARATION, AND DECIDED THAT DISCUSSION SHOULD CONTINUE AT THE COMMISSION'S NEXT MEETING.

STEPS TO FURTHER RELAX RENT CONTROL OF PRE-WAR PREMISES

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THE GOVERNMENT HAS PROPOSED A NUMBER OF MEASURES FURTHER TO RELAX RENT CONTROL - BUT DOMESTIC TENANTS WILL CONTINUE TO ENJOY SECURITY OF TENURE AND CONTROL AGAINST LARGE INCREASES OF RENT,

THESE MEASURES, INCLUDE:

* THE RAISING FROM 27 TO 30 TIMES THE STANDARD RENT

FOR THE PERMITTED RENT OF PRE-WAR DOMESTIC PREMISES, EFFECTIVE FROM AUGUST 1, 1986; AND

* THE RAISING OF THE MINIMUM PERCENTAGE COMPONENT IN THE

RENT INCREASE MECHANISM IN PART 11 FROM 55 PER CENT TO 60 PER CENT OF PREVAILING MARKET RENT. TO BE REACHED BY ALL CONTROLLED RENTS, FROM DECEMBER 19, 1986.

ANNOUNCING THE MEASURES TODAY (FRIDAY), A GOVERNMENT SPOKESMAN EXPLAINED THAT THEY WERE DRAWN UP FOLLOWING AN ANNUAL REVIEW OF THE WORKING OF THE LANDLORD AND TENANT (CONSOLIDATION) ORDINANCE, AN ASSESSMENT OF MARKET CONDITIONS DURING 1985, AND HAVING REGARD TO THE INTERESTS OF BOTH LANDLORDS AND TENANTS.

THEY ARE IN KEEPING WITH THE GOVERNMENT'S PREVIOUSLY STATED INTENTION THAT AS SOON AS CIRCUMSTANCES PERMIT, EVERY EFFORT CONSISTENT WITH THE NEED TO AVOID ADVERSE SOCIAL CONSEQUENCES SHOULD BE MADE TO ACCELERATE THE PHASING OUT OF RENT CONTROL, THE SPOKESMAN SAID.

THE PROPOSED MEASURES ARE CONTAINED IN THE LANDLORD AND TENANT (CONSOLIDATION) (AMENDMENT) BILL 1986 GAZETTED TODAY. THE BILL WILL BE INTRODUCED INTO THE LEGISLATIVE COUNCIL ON JUNE 4.

/THE SPOKESMAN