XN000022-1992-05-21 — Page 2

THURSDAY, MAY 21, 1992

PROPOSAL TO PHASE OUT RENT CONTROL BY 1994

PROPOSED LEGISLATION TO PHASE OUT RENT CONTROL BY THE END OF 1994 WILL BE INTRODUCED INTO THE LEGISLATIVE COUNCIL EARLY NEXT MONTH, A GOVERNMENT SPOKESMAN ANNOUNCED TODAY (THURSDAY).

BUT HE EMPHASISED THAT THE LANDLORD AND TENANT (CONSOLIDATION) (AMENDMENT) BILL 1992 TO BE GAZETTED TOMORROW (FRIDAY) WOULD CONTAIN A NUMBER OF SAFEGUARDS FOR AFFECTED TENANTS.

FOR INSTANCE, THE LAW WILL ALLOW THE NEW INCREASES AND THEIR TIME-FRAME TO BE ADJUSTED RELATIVELY EASILY SHOULD UNFORESEEN MARKET FORCES THREATEN ADVERSE SOCIAL CONSEQUENCES.

THE BILL ALSO PROVIDES FOR SPECIFIC LEVELS OF PERMITTED INCREASES OVER THE NEXT THREE YEARS TO ALLOW CONTROLLED RENTS TO RISE CLOSE TO MARKET RENTS.

IN ADDITION, TENANTS WILL CONTINUE TO ENJOY SECURITY OF TENURE IF THEY ARE WILLING TO PAY MARKET RENTS AFTER DECONTROL.

THE

ALSO, THOSE TENANTS DISPOSSESSED ON THE GROUNDS OF REDEVELOPMENT ARE PRESENTLY ENTITLED TO COMPENSATION AT TWICE 1983 RATEABLE VALUE OF THEIR PREMISES PLUS REMOVAL COSTS AND VALUE OF FITTINGS, ALTHOUGH IN MOST CASES LANDLORDS ARE PREPARED PAY MORE.

THE

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A

IN FUTURE, THE SPOKESMAN SAID THE LEVEL WILL BE INCREASED TO MULTIPLE OF 1.3 OF THE CURRENT RATEABLE VALUE. THIS WILL ROUGHLY DOUBLE THE CURRENT LEVEL OF STATUTORY COMPENSATION AND WILL CONTINUE TO APPLY EVEN AFTER THE PRESENT CONTROLS ON RENT END IN 1994.

THE SPOKESMAN EXPLAINED THAT PROPOSED CHANGES WILL AFFECT THE RENT CONTROL MECHANISMS IN BOTH PARTS I AND II OF THE ORDINANCE.

UNDER PART I WHICH COVERS PRE-WAR DOMESTIC PERMITTED RENT IS CURRENTLY 48 TIMES THE PRE-WAR RENT. REVISED TO 55 TIMES IN 1992, 65 IN 1993 AND 75 IN 1994.

THE

PREMISES, THIS WILL BE

HOWEVER, THE BILL ALSO SPECIFIES A MINIMUM RENT IN EACH OF THESE YEARS. THIS WILL BE 60% OF PREVAILING MARKET RENT IN 1992, 75% IN 1993 AND 92.5% IN 1994.

NO RENT INCREASES CAN BE MADE WITHIN 12 MONTHS FROM OF THE LAST INCREASE.

AS FOR PART II THE SPOKESMAN SAID THIS RELATES TO CREATED BEFORE JUNE 10, 1983 IN THOSE POST-WAR DOMESTIC BUILT BEFORE JUNE 19, 1981 WITH A 1983 RATEABLE VALUE OF $30,000.

THE DATE

TENANCIES PREMISES LESS THAN

/THE RENTS