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Following is a transcript of a media session delivered by the Secretary for Housing, Planning and Lands cum Chairman of Hong Kong Housing Authority, Mr Michael Suen Ming-yeung, on the Report on the Review of Domestic Rent Policy after the Housing Authority Regular Open Meeting today (November 27) (English portion):
Secretary for Housing, Planning and Lands: The Housing Authority has accepted the Report on the Review of Domestic Rent Policy and endorsed the establishment of an income index tracking the movement in public rental housing tenants' household income to determine future rent adjustments.
The Authority intends to request the Government to introduce into the Legislature an amendment Bill to amend the Housing Ordinance as soon as possible.
The Housing Authority has agreed that, upon implementation of the new mechanism, there will be an across-the-board rent reduction of 11.6 per cent.
The Housing Authority has also agreed to grant a one-off remission of rent for the month of February in 2007 to all public housing tenants.
Reporter: What happen if the legislation doesn't get passed by your target date of the middle of next year?
Secretary for Housing, Planning and Lands: In that case, there will be pressure on the Legislature to try to pass it as soon as possible. But of course, whether to pass a piece of law is a prerogative of the Legislative Council. And before then, we will do our very best to ensure that all the queries raised by the Legislature in respect of the amendment Bill are all answered so that they can have a clear basis to debate whether or not to pass the bill.
Reporter: So will the Government consider giving another rebate or another rent free period?
Secretary for Housing, Planning and Lands: I think we have made it very clear that upon enactment of the bill, there will be an across-the-board reduction of 11.6 per cent and that is still on the cards.
Reporter: There are concerns that when the new mechanism for determining rent comes into effect, it will allow the rent to keep increasing. Can you give assurance that this will not happen?
Secretary for Housing, Planning and Lands: I am glad to answer your question and I am pleased that you raised it. I think you have to have some understanding of the working of the new mechanism. The checking device is based on the actual income level of the tenants and so without any change in the level of income of the tenants, there will be no change in the rent level. In other words, any increase in rent will be a direct result of an increase in the income of the tenants. And so any increase in rent will be preceded by an increase in the tenants' income. The direct correlation between income and the rent is to ensure that the affordability of tenants is well protected.
Ends/Monday, November 27, 2006
Issued at HKT 20:30
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