XN000022-1993-06-28 — Page 2

MONDAY, JUNE 28, 1993

DEBATE ON LANDLORD AND TENANT AMENDMENT BILL TO RESUME

THE LEGISLATIVE COUNCIL'S DEBATE ON THE LANDLORD AND TENANT (CONSOLIDATION) (AMENDMENT) BILL 1992 WILL RESUME ON WEDNESDAY (JUNE 30), A GOVERNMENT SPOKESMAN SAID TODAY (MONDAY).

THE ADMINISTRATION WILL INTRODUCE AT THE BILL A NUMBER OF SIGNIFICANT AMENDMENTS.

THE

COMMITTEE STAGE OF

"THESE ADJUSTMENTS ARE CONSIDERED TO BE EQUITABLE, AND FAIR TO BOTH AFFECTED TENANTS AND LANDLORDS,

HE SAID.

AFFORDABLE

THE SPOKESMAN POINTED OUT THAT THE BILL WAS INTRODUCED INTO HOC LEGCO IN JUNE 1992 AND HAS BEEN SUBJECT TO SCRUTINY BY A LEGCO AD GROUP. CONSIDERABLE PUBLIC COMMENTARY HAS ALSO BEEN EXPRESSED ON VARIOUS ASPECTS OF THE BILL.

THE

SUMMING UP THE CHANGES, HE SAID: "IT WILL BE PROPOSED THAT

ADJUSTMENTS ANNUAL

TO THE MINIMUM RENT IN PART II CONTROLLED TENANCIES BE REDUCED FROM 7. 5 PERCENTAGE POINTS OF THE PREVAILING MARKET RENT TO 5. THIS IS IN LINE WITH PAST INCREASES UP TO 1991.

THE EXPIRY

प

DATE FOR PART II

IT IS ALSO PROPOSED TO EXTEND CONTROLS WHICH AFFECT 97% OF ALL CONTROLLED PREMISES FROM DECEMBER 31, 1994 TO DECEMBER 31, 1996.

MULTIPLIER

FOR FROM

FINALLY IT IS PROPOSED то INCREASE THE STATUTORY COMPENSATION FOR TENANTS DISPOSSESSED ON REDEVELOPMENT 1.3 OF THE CURRENT RATEABLE VALUE TO 1.7.

EMPHASISED THAT

CONTINUOUSLY AND CAREFULLY MONITORED BY

AND

THE SPOKESMAN

VALUATION.

BY

THE

RENTAL MARKET

WOULD

THE

COMMISSIONER

OF

BE RATING

RESOLUTION

ΤΟ

THEIR TIME-FRAME

"IT WILL BE RELATIVELY EASY

WAY OF LEGCO ADJUST THE ANNUAL INCREASES IN MINIMUM RENT LEVELS, AND THE LEVEL OF STATUTORY COMPENSATION," HE ADDED.

HE NOTED THAT IN JULY AND AUGUST 1992 THE RATING AND VALUATION DEPARTMENT CONDUCTED A SURVEY OF ALL PART II CONTROLLED PREMISES.

THAT CONTROLS AFFECT

SOME

FROM THIS SURVEY IT WAS CONFIRMED 45,500 HOUSEHOLDS, 137,000 PERSONS IN SOME 32,500 PREMISES.

"MANY TENANTS OF

THESE

PREMISES HAVE ENJOYED BELOW MARKET RENTS FOR 20 YEARS. CONTROLS DISCOURAGE LANDLORDS FROM REFURBISHING OR MAINTAINING THEIR UNITS.

OWNERS AND ARE

"MOREOVER, MANY LANDLORDS ARE SINGLE-PREMISES DEPENDENT ON RENTS FOR THEIR LIVELIHOOD. IT IS WORTH MENTIONING THAT

THEIR PREMISES ABOUT 70% OF LANDLORDS BOUGHT

BEFORE RENT CONTROLS

WERE INTRODUCED IN 1973," THE SPOKESMAN SAID.

UNDER

HE ADDED THAT

THE NEW PROPOSALS MANY TENANTS WOULD CONTINUE TO ENJOY SUB-MARKET RENTS FOR A FURTHER FOUR TO FIVE YEARS.

/"FAILURE TO