XN000022-1991-07-05 — Page 4

FRIDAY, JULY 5, 1991

3

RENT CONTROL TO BE EXTENDED FOR THREE MORE YEARS

* *

THE EXECUTIVE COUNCIL HAS ENDORSED THE EXTENSION

(CONSOLIDATION) OF PART II OF THE LANDLORD AND TENANT THREE YEARS TO DECEMBER 31, 1994.

OF THE LIFE ORDINANCE

FOR

ANNOUNCING THIS TODAY (FRIDAY),

A GOVERNMENT SPOKESMAN

TENURE AND CONTROLS

SAID

THIS PART OF THE ORDINANCE PROVIDES SECURITY OF INCREASES IN RENTS OF CERTAIN POST-WAR DOMESTIC PREMISES.

IT IS DUE TO EXPIRE ON DECEMBER 18, 1991 UNLESS EXTENDED RESOLUTION OF THE LEGISLATIVE COUNCIL.

BY A

AT

AT

THERE WERE THE SPOKESMAN SAID THAT AS AT JANUARY 1 THIS YEAR, 43,000 SUCH TENANCIES BUT ADDED THAT THEIR NUMBER WAS DIMINISHING THE RATE OF ABOUT 5,000 A YEAR DUE TO REPOSSESSION, FRESH LETTINGS MARKET RENTS AND DEMOLITION FOR REDEVELOPMENT.

THAT

CONSIDERATION CAREFUL

HAD BEEN GIVEN TO

HE STRESSED IDENTIFYING A SUITABLE EXTENSION PERIOD FOR PART II.

"GIVEN THE CURRENT

DISPARITY BETWEEN CONTROLLED AND MARKET ADVERSE SOCIAL CONSEQUENCES, IT RENTS AS WELL AS THE NEED TO AVOID

BEFORE 1994, WAS NOT CONSIDERED FEASIBLE TO PHASE OUT RENT CONTROLS HE ADDED).

INTENTION TO PHASE OUT HE SAID IT REMAINED THE GOVERNMENT'S

FORMULATED RENT CONTROLS ON A GRADATED BASIS AND PROPOSALS WERE BEING

ADJUSTED OVER PROGRESSIVELY

THE NEXT TO ALLOW THE CONTROLS TO BE THREE YEARS TO A POINT WHERE THEY MIGHT BE DISPENSED WITH.

TENTATIVELY, IT WAS PROPOSED TO ADJUST ON AN ANNUAL

RENT то

BASIS REACHED

THE MINIMUM

BE MINIMUM PERCENTAGE COMPONENT CONTROLLED TENANCIES) BY SOME 7.5 PERCENTAGE POINTS, HE EXPLAINED.

THE BY

"THIS SHOULD ALLOW THE MINIMUM PERCENTAGE COMPONENT TO RISE WITHIN 10 PER CENT OF THE PREVAILING MARKET RENT BY THE END OF 1994.

"AT THIS STAGE THE CONTROLS SHOULD BE CAPABLE OF BEING WIHTOUT CAUSING HARDSHIP TO AFFECTED TENANTS.

ΤΟ

DROPPED

"THE EFFECT ON INFLATION WOULD BE INSIGNIFICANT IN VIEW OF

HE SAID. SMALI, NUMBER OF HOUSEHOLDS INVOLVED,

M

HE POINTED OUT THAT IT WAS ALSO PROPOSED TO PHASE OUT UNDER PART I OF THE ORDINANCE WHICH AFFECT ABOUT 940 PRE-WAR PREMISES.

THE

CONTROLS DOMESTIC

CEASING

TO

SECURITY

HE DREW ATTENTION TO THE FACT THAT THOSE TENANCIES BE PROTECTED BY PARTS I AND II WOULD CONTINUE TO BE AFFORDED OF TENURE UNDER PART IV OF THE ORDINANCE.

/"IN ADDITIN