XN000022-1992-05-21 — Page 3

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THURSDAY, MAY 21, 1992

THE RENTS FOR THESE PREMISES MAY ONLY BE INCREASED ONCE EVERY TWO YEARS BY NOT MORE THAN 30% OF THEIR CURRENT PAYMENTS OR UP TO 70% OF THE PREVAILING MARKET RENT WHICHEVER IS THE GREATER.

THIS MINIMUM RENT WILL BE INCREASED TO 77.5% IN 1992, 85% IN 1993 AND 92.5% IN 1994.

TURNING TO THE NUMBER OF PREMISES WHICH WILL BE AFFECTED BY THE DECONTROL PROPOSALS, THE SPOKESMAN SAID IT NOW STOOD AT ONLY 39,000 WHICH ACCOUNTS FOR ABOUT 4% OF ALL PRIVATE RESIDENTIAL FLATS.

THIS NUMBER IS DIMINISHING AT THE RATE OF SOME 5,000 A YEAR OWING TO REDEVELOPMENT AND REPOSSESSION.

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BECAUSE OF THIS DWINDLING FIGURE COUPLED WITH THE FACT THAT TENANTS IN RENT CONTROLLED APARTMENTS ARE ONLY PAYING AN AVERAGE OF ABOUT 60% OF MARKET VALUE, THE SPOKESMAN SAID IT WOULD BE UNFAIR TO MAINTAIN INDEFINITELY A POLICY OF GIVING THE BENEFITS OF REDUCED RENTS TO A SMALL MINORITY OF HOUSEHOLDS AT THE EXPENSE OF LANDLORDS WHO MIGHT BE DISCOURAGED FROM MAINTAINING AND REFURBISHING THEIR

PREMISES.

HE ALSO POINTED OUT THAT WHEN RENT CONTROLS WERE FIRST INTRODUCED THEY WERE INTENDED TO BE TEMPORARY MEASURES TO PROTECT TENANTS FROM EXCESSIVE RENT INCREASES.

FOR THIS REASON, THE GOVERNMENT HAD IN THE PAST REGULARLY AND PUBLICLY DECLARED ITS COMMITMENT ΤΟ THE DECONTROL OF RENTS WHEN CIRCUMSTANCES ALLOWED.

AN IMPORTANT INDICATION THAT THIS GOAL CAN BE ACHIEVED AT THE END OF 1994 IS THAT THE ONGOING HIGH PRODUCTION OF HOUSING IN BOTH THE PUBLIC AND PRIVATE SECTORS HAVE PRODUCED A REASONABLE BALANCE BETWEEN THE SUPPLY OF, AND THE DEMAND FOR HOUSING AS EVIDENCED BY THE MODEST MOVEMENT IN DOMESTIC RENTS IN RELATION TO PRICES.

THE SPOKESMAN STRESSED THAT SHOULD THERE BE UNFORESEEN CHANGES IN MARKET FORCES DURING THE PERIOD LEADING ΤΟ DECONTROL, OR IF HARDSHIP IS CAUSED TO TENANTS, THE PROPOSED LEGISLATION WILL ALLOW FOR THE ADJUSTMENT OF BOTH THE TIME-FRAME FOR DECONTROL AND THE LEVEL OF ANNUAL INCREASES BY A SIMPLE RESOLUTION OF THE LEGISLATIVE COUNCIL.

/RENT CONTROL