PREMISES BUILT AFTER SEPTEMBER 1947 (To come under Control of Rent Ordinance)

Mr Lee Choon Eng asked the Minister for Local Government, Lands and Housing if the Government will consider introducing amending legislation with a view to bringing premises built after September, 1947, under the provisions of the Control of Rent Ordinance (Cap. 242).

Inche Abdul Hamid: The answer is no, Sir.

Mr Lee Choon Eng: Is the Minister aware that landlords are taking advantage by charging fantastic rentals and issuing notices to quit because no control of rents is being enforced?

Inche Abdul Hamid: Mr Speaker, Sir, I would suggest to the Member for Queenstown two considerations.

First, the houses which are now subject to the provisions of the Control of Rent Ordinance were almost all erected prewar at cheaper cost and the controlled rentals can be said to represent a not unreasonable return on capital.

Second, premises built or completed after 7th September, 1947 were built in the expectation that there would be no control of rents and the relationship between landlords and their tenants was one freely established on such understanding. There is no special reason or emergency (such as existed when rent control was introduced for prewar properties) to justify control of properties erected after September, 1947. Such control would indeed result in stifling private enterprise in building more houses and would merely aggravate the housing situation.

Mr Lee Choon Eng: Is the Minister aware that an amount of $500 increase in rentals is demanded by such landlords to exploit their tenants?