XN000022-1993-05-06 — Page 5

THURSDAY, MAY 6, 1993

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RENT CONTROLS TO BE EXTENDED TO 1996

THE PROPOSED DEADLINE FOR PHASING OUT RENT CONTROL WILL НЕ EXTENDED FOR A FURTHER TWO YEARS AND WILL NOW LAPSE ON DECEMBER 31, 1996 INSTEAD OF DECEMBER 31, 1994, A GOVERNMENT SPOKESMAN ANNOUNCED TODAY (THURSDAY).

TWO OTHER AMENDMENTS TO REDUCE THE LEVEL OF MINIMUM RENTS WITH A PARALLEL PROPOSAL ΤΟ INCREASE COMPENSATION TO TENANTS DISPOSSESSED BY REDEVELOPMENT WILL ALSO BE PROPOSED FOR INCLUSION INTO THE LANDLORD AND TENANT (CONSOLIDATION) (AMENDMENT) BILL 1992.

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THE ANNUAL PERMITTED INCREASES TO THE MINIMUM RENT (CURRENTLY 70 PER CENT OF THE PREVAILING MARKET RENT) WILL BE SET AT FIVE PERCENTAGE POINTS, AS OPPOSED TO AN EARLIER PROPOSAL OF 7.5.

THE RECOMMENDED 'COMPENSATION MULTIPLIER' MEANWHILE WILL RISE FROM 1.3 TO 1.7 OF THE CURRENT RATEABLE VALUE OF THE PREMISES.

THE PROPOSALS FOLLOWED FULL CONSULTATIONS COUNCIL, THE SPOKESMAN SAID.

WITH THE EXECUTIVE

"PUBLIC AND LEGISLATORS' EXPRESSED CONCERN ON THE ISSUE WERE ALSO THOROUGHLY TAKEN INTO ACCOUNT.

HE ALSO CONFIRMED THAT A DETAILED SURVEY OF THE AFFECTED TENANTS HAD BEEN CARRIED OUT BEFORE THE DECISIONS WERE REACHED.

THE EXHAUSTIVE AND CAREFUL CONSULTATION EXERCISE, HE STRESSED, WAS TO ENSURE THAT THE PROPOSED ADJUSTMENTS WOULD RESULT IN MODEST AND AFFORDABLE INCREASES.

INDEED, IN MONEY TERMS, HE POINTED OUT THAT THE BULK OF THE POORER TENANTS, PARTICULARLY THOSE OCCUPYING BEDSPACES, WOULD NOT BE AFFECTED BY THE DECONTROL AS THE MAJORITY WERE ALREADY PAYING MARKET RENTS.

FOR THOSE STILL UNDER THE CONTROL SCHEME, ADDITIONAL INCREASES WILL BE VERY SMALL AVERAGING ONLY ABOUT $17 A MONTH IN 1994 AND NONE IN 1993.

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FLATS,

SIMILARLY, INCREASES FOR THOSE LIVING IN SELF-CONTAINED THE LARGEST CATEGORY OF AFFECTED TENANTS, WOULD ALSO NOT BE LARGE AND WILL AVERAGE ABOUT $136 IN 1993 AND $251 IN 1994.

HE CONFIRMED THAT CONTROLS A'T PRESENT AFFECTED SOME 33,000 PREMISES AND ABOUT 150,000 PEOPLE, BUT EMPHASISED THAT THESE NUMBERS WERE DIMINISHING STEADILY.

AS REGARDS THE ENHANCED STATUTORY COMPENSATION, THE SPOKESMAN ESTIMATED THAT THE HIGHER MULTIPLIER WOULD ENABLE A DISPLACED TENANT TO RENT SIMILAR ACCOMMODATION FOR MORE THAN EIGHT MONTHS.

"THE NEW STATUTORY RATE WOULD ALSO MORE THAN DOUBLE THE EXISTING PAYMENT TO ABOUT $85,000 FOR A 600 SQ FT FLAT, HE ADDED.

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/HE ALSO