XN000022-1993-12-15 — Page 34

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WEDNESDAY, DECEMBER 15, 1993

"THE INCREASES ARE DESIGNED TO ENSURE THAT PAYMENTS ARE MADE AT A REALISTIC LEVEL, HE SAID.

TI

IN A SEPARATE RESOLUTION, MR MATHEWS ALSO MOVED THE CORONERS (WITNESSES' ALLOWANCES) (AMENDMENT) RULES 1993 TO BRING SIMILAR INCREASES TO THE ALLOWANCES PAYABLE TO ORDINARY, PROFESSIONAL AND EXPERT WITNESSES ATTENDING A CORONER'S INQUIRY,

BOTH RESOLUTIONS WERE PASSED.

MOTION TO EXTEND STAMP DUTY REQUIREMENT TO CURB SPECULATION PASSED

THE EXTENT OF SPECULATION ON RESIDENTIAL PROPERTY HAD то A CERTAIN EXTENT BEEN CONTAINED LAST YEAR, WHILE THE PROPERTY MARKET HAD REMAINED BUOYANT.

THE SECRETARY FOR THE TREASURY, MR DONALD TSANG, SAID TODAY (WEDNESDAY) IN THE LEGISLATIVE COUNCIL.

HE SAID THIS WAS THE COMBINED RESULT OF THE TIGHTER MORTGAGE LENDING POLICY OF THE BANKS AS WELL AS THE INCREASED COST OF SPECULATION AS A RESULT OF THE STAMP DUTY PROVISIONS.

ΤΟ THE

IN JANUARY LAST YEAR, THE LEGCO APPROVED AMENDMENTS STAMP DUTY ORDINANCE WHICH REQUIRED, AMONG OTHER THINGS, STAMP DUTY TO BE PAID ON ALL AGREEMENTS FOR SALE OF RESIDENTIAL PROPERTY.

LONG

THE SECRETARY SAID THESE AMENDMENTS HAD SIGNIFICANTLY INCREASED OF SPECULATION ON RESIDENTIAL PROPERTY THROUGH THE USE OF CHAINS OF SALE AND PURCHASE AGREEMENTS BEFORE ACTUAL ASSIGNMENT.

COST

IN

THIS IS A DISINCENTIVE TO THOSE WHO SPECULATE ON PROPERTY THE PERIOD BETWEEN THE CONCLUSION OF A SALE AGREEMENT AND ASSIGNMENT, THUS PUSHING UP PRICES FOR GENUINE HOME-BUYERS.

MR TSANG SAID IT WAS NOT POSSIBLE TO ASCERTAIN WITH WHAT THE EXACT CONTRIBUTION OF THE STAMP DUTY REQUIREMENT TOWARDS CONTAINING PROPERTY SPECULATION.

BUT A DECISION NOT TO EXTEND SUCH REQUIREMENT COMPLETELY THE WRONG SIGNAL TO THE MARKET, HE ADDED.

PRECISION HAD BEEN

WOULD SEND

"THERE WOULD BE A CONSIDERABLE RISK THAT SPECULATION WOULD BECOME RIFE AGAIN TO THE DETRIMENT OF GENUINE HOME-BUYERS."

MEASURE

THEREFORE, A MOTION THAT SOUGHT THE EXTENSION OF THIS WHICH THE GENERAL PUBLIC HAS WELCOMED, BY A FURTHER PERIOD OF YEARS BEYOND DECEMBER 31 THIS YEAR WAS PASSED IN THE LEGCO TODAY.

TWO

H

"THERE HAS BEEN CONTINUOUS CONCERN ABOUT GENUINE HOME BUYERS

ABLE TO AFFORD THE RISING COSTS OF PROPERTY.

NOT

BEING

"THIS MOTION