XN000022-1996-03-23+24 — Page 11

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Under Mr To's resolution and Mr Law Cheung-kwok's amending motion, tenants living in premises with rateable value of $90,000 or below will receive compensation ranging from five to seven times the rateable value. In dollar terms, a flat with $90,000 rateable value will attract compensation of $450,000, compared with $153,000 under the existing level. The proposals unnecessarily benefit people in large premises, where in fact the rateable value of a typical old style tenement affected by redevelopment is only about $60,000.

"The proposed compensation levels are only the statutory minimum. The voluntary settlement level or the "market rate" will likely increase to an even higher level as a result of a higher statutory minimum level", Mr Wong said.

"Unjustifiably high levels of compensation are a disincentive to redevelopment. Mr To and Mr Law's proposals will be counter-productive as there is a real danger that urban renewal will significantly slow down and hence reduce the chances for tenants residing in dilapidated buildings to move out into better living conditions in the foreseeable future."

"Moreover, it will increase the risk of people resorting to illegal means to obtain vacant possession in order to avoid compensation payment," Mr Wong stressed.

"The Government's proposal is more equitable, and strikes a balance between the interests of landlords and tenants," Mr Wong said. "For the target group of low- income tenants, it provides much enhanced levels of compensation without being unnecessarily generous to better-off tenants."

Mr Wong maintained that a package of legislative amendments which enable compensation to be computed on the basis of a sliding scale and the apportioned rateable value of a sublet unit, as well as increasing the penalties for unlawful eviction would be the most equitable and reasonable approach to address the matter of redevelopment compensation. However, under the present circumstances where some LegCo members are bent on moving resolutions despite their shortcomings, the Government is forced to move an amending motion seeking to ensure that the enhanced benefit of compensation will go to the target tenants.

Mr Wong strongly urged LegCo Members to support the Government's amending motion which he firmly believed would balance the interests of landlords and tenants in a fair and equitable way.

End