86.
31
Office space in the central areas is still hard to find and the supply this year is not expected to meet demand. Thus, for the time being, rents seem likely to continue on an upward course. However, 1975 and 1976 look to be record years with the prospect of some 7 million square feet becoming available. Landlords who press too hard for large rent increases now may, therefore, well find the position reversed in a year's time, particularly as much of the space now being built will be in the low-rental areas which, if rents in the central districts of the urban area continue to increase, will begin to look more and more attractive.
87.
While space vacant in flatted factories, at 2.24 million square feet, is rather less than last year, there seems to be more than sufficient available to meet demand and there are clear indications that rents in the less popular industrial areas are coming down. Estimates of supply this year and in 1975 and 1976 indicate that sufficient is planned to meet the probable demand although, of course, in this sector, demand is dependent very much on the state of the economy generally.
88.
My honourable Friend Mr. Hilton Cheong-Leen has, nevertheless, pressed for a form of control on rents in the business sector. My reading of the situation does not lead me to conclude that there is a need for such controls at this time. Market forces seem likely to have the effect generally of containing inflationary trends and, in certain areas, rentals may well take a downward turn. The then Colonial Secretary indicated in this Council on 28th January and 20th May 1970 that the Government was prepared to consider measures to provide security of tenure for business tenants but, for the reasons I have stated, we have long set ourselves against restricting rents below market levels and to provide for statutory security of tenure without rent control would
be a waste of time.
89.
A Fair Rents Tribunal, or some such similar panel would, of course, only be o e facet of the administrative machinery necessary if measures were taken to control rents of non-residential premises. However, although the word
/"fair".
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