XN000022-1996-12-11 — Page 27

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In conclusion, Mr President, rent control was introduced as a temporary measure many years ago to deal with a particular situation of a serious shortage of rented accommodation and the unreasonably high rents. I have already explained that this situation has completely changed now in Hong Kong and the grounds for extending rent control no longer exist. I appeal to Members to keep and remember the basic principles, and should not be guided by populist and generally hasten sentiment.

With these remarks, Mr President, I urge Honourable Members to vote against the resolution.

End

Speech by Secretary for Housing on rent control (second resolution)

Following is the speech by the Secretary for Housing, Mr Dominic Wong, in response to the motion debate on the second resolution on Landlord and Tenant (Consolidation) Ordinance moved by the Hon James To in the Legislative Council today (Wednesday):

Mr President,

I have already pointed out in my first speech some of bad effects of extending rent control and some of the misconceptions supporting an extension. I have to repeat that this resolution, together with the last, are unjustified. This second resolution, in particular, seeks to reduce the permitted rent increases now provided in the law to what was allowed two years ago. This is clearly a retrograde step and a major setback in the whole process of de-control.

I have to reiterate that this second resolution, which seeks to lower rent increase levels, will widen the gap between controlled rent and market rent, and will therefore be financially more painful for affected tenants when the extended period comes to an end two years later.

Mr President. I do not wish to repeat all other arguments I would like to urge Honourable Members to vote against the second resolution and not to be guided by popular sentiment.

End