Opinion | Carrie Lam needs to act on Link Reit ‘mountain’
- A proposal aimed at reining in runaway prices and rent rises at former government-owned shopping centres and wet markets by one of the Hong Kong leader’s own cabinet reflects widespread concern
Hong Kong’s legislative system is designed to make the enactment of non-government bills difficult, if not impossible.
That is why a proposal targeting Link Reit, a real estate investment trust that took over shopping malls and wet markets from the Housing Authority in 2005, stands a slim chance of being passed.
Nonetheless, it still puts pressure on the government to come up with better ways to rein in runaway prices fuelled by hefty rent increases.
Under the proposal from Regina Ip Lau Suk-yee, rents would only rise according to a formula based on changes in inflation, household income and the rateable values of property. A levy on vacant shops would also be imposed.
The move has won support from fellow lawmaker Alice Mak Mei-kuen, of the Federation of Trade Unions, but raised reservations from pro-business members.
Hong Kong proposal to cap shop rents labelled communist
The proposed move arguably does not square with Hong Kong’s free market economy, but government intervention is called for when public interest is undermined. There are also laws governing public utilities.