TNAG-1362-FCO40-1808-Hong-Kong-Hansard-reports-and-minutes-of-the-meetings-of-the-1985 — Page 89

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As for pre-war domestic tenancies, the aim is

to bring their rents closer to the minimum permitted rents

of near-comparable early post-war premises. For pre-war

premises, standard rent for the purpose of the Ordinance is

their rent as at 25th December 1941. Current permitted rent

is set at 21 times this level and it is now proposed to make

a modest increase to 27 times the standard rent.

This change would result in an average increase

of about 29% or $234 per month on current permitted rents

and would affect only about 2,500 domestic units. It would

serve to bring their average permitted rents also up to 55%

of prevailing market rents.

Last of the main provisions in the Bill are those

for fees to be payable to the Commissioner of Rating and

Valuation for processing certain applications. These fees,

which would be fixed by the Financial Secretary, are proposed principally to recover some of the Government's costs. The

Bill also seeks to clarify the powers of the Lands Tribunal

in certain landlord and tenant matters. Other minor changes

feature in the Explanatory Memorandum to the Bill, so I will

not rehearse them.

Sir, public reaction to the Bill since its

publication on 26th April has been muted, and there seems

to be broad acceptance of these rather mild proposals. They

aim to take another step along the road of phasing out rent

control, but the step is a moderate one since we are always

conscious of the need to avoid hardship. It is never easy

to please both landlords and tenants, but in the present

circumstances I believe that the proposals contained in the Bill constitute a reasonable compromise.

Sir, I move the debate be now adjourned.