ENG-1992 — Page 217

HOUSING

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for settling electricity charges for public lights in squatter areas installed under this programme.

Kowloon Walled City

The Kowloon Walled City clearance was completed in July 1992. Some 28 000 residents and 900 commercial undertakings had moved out of the Walled City. About $3 billion cash compensation had been paid out.

The demolition contract, costing about $42 million, was awarded in November 1992. The structures on the 2.7 hectare site are being demolished by conventional methods. Demolition work is due for completion in March 1994. Special measures have been taken to protect the Yamen Building and other antiquity items, namely two Chinese cannons, granite lintel and the couplet of the Longjin Free School, two stone tablets of the Tin Hau Temple and three old wells. They will be preserved and incorporated in a public park with community facilities.

Park development works will commence in April 1994 and be carried out in two phases. The entire development is expected to be completed in the latter half of 1995.

Rent Control in the Private Sector

Statutory controls on rents and security of tenure date back to 1921 in Hong Kong. The legislation governing these matters is the Landlord and Tenant (Consolidation) Ordinance. Parts I and II of this ordinance apply controls over the rent levels and give security of tenure in respect of certain domestic tenancies. For nearly all other domestic tenancies Part IV of the ordinance gives security of tenure but the tenant must pay the prevailing market rent.

Under the ordinance, unless a tenant voluntarily vacates the premises, a landlord must apply on certain specified grounds and obtain an order from the Lands Tribunal before he can recover possession. Heavy penalties are prescribed for harassment of a protected tenant with intent to induce him to leave. However, provisions exist to facilitate an agreed surrender by the tenant of his protected tenancy in exchange for a consideration.

The Rating and Valuation Department publishes explanatory pamphlets to help people understand their position in relation to the legislation. It provides an advisory and mediatory service to deal with the many practical problems arising from rent controls and also operates a scheme under which rent officers attend District Offices on designated days each week to deal with referred cases and answer enquiries on landlord and tenant matters.

The legislation is under constant review to improve its workings and to achieve the objective, recommended in 1981 by a Committee of Review and endorsed by the government, that as soon as circumstances permit, rent controls should be phased out. To this end a bill has been introduced to the Legislative Council to allow controlled rents under Parts I and II to increase progressively up to market levels. However, security of tenure will still be preserved.

Pre-War Premises

Legislation controlling rents and providing security of tenure for pre-war premises was instituted by proclamation immediately after World War Two. In 1947 it was embodied in the Landlord and Tenant Ordinance, since re-enacted as Part I of the Landlord and Tenant (Consolidation) Ordinance.