The measures proposed in the Budget to prohibit rent recovery have aroused social concern. Following a video conference with Financial Secretary Chen Maobo last week, the Real Estate Developers Association submitted a submission to the authorities, describing the measures as "severely affecting Hong Kong's international financial center". reputation".
After listening to opinions from all walks of life, Chen Maobo reduced the "protection period" for prohibiting rent recovery from a maximum of six months to three months, and landlords and tenants who reach a rent reduction agreement can be exempted and will not be prohibited from pursuing rent.
The original proposal to prohibit rent-chasing can only help the merchants to delay the payment of rent for three months. The director's original intention was to give the merchants time to turn around, but the actual situation may not help, because the business has plummeted and the rent still cannot be paid after three months. .
The revised proposal increases the incentive for landlords to reduce rents, and the direction is desirable. As pointed out by the Retail Management Association, it is expected that landlords will be willing to negotiate with retailers to solve the rent problem.
Weak business negotiation ability, rent reduction may not come true
However, the direction is desirable, but the power is not enough.
The Secretary reduced the protection period to three months without setting any requirements for the extent of the rent reduction. As a result, the landlord may only be willing to reduce the rent by 10% and 50% in exchange for an exemption, that is, if the merchant is not willing to compromise, the original rent price will be maintained. , and the rent recovery operation will be launched after three months.
According to the Retail Management Association, retailers usually have at least two to three months' deposits in the hands of landlords, so the three-month rent ban is not enough incentive.
The new crown epidemic is raging, merchants' business has plummeted, and everyone is a loser.
If possible, the losses should be borne by the owners and the merchants, rather than all the merchants, while the owners enjoy stable income.
For the government to succeed, it must provide more incentives for landlords to reduce rents, or improve the position of merchants in the bargaining game.
Legislative Council member Tian Beichen suggested earlier that the government should refund taxes to landlords for rent reduction.
The methods vary, but the principles are similar.
No matter in the street or in the shopping mall, the flow of people is very deserted.
(Photo by Zheng Zifeng)
Make good use of various means to govern more actively
Those with a little knowledge of behavioral psychology will also know that there are so-called positive and negative reinforcement and positive and negative punishment, which are used to encourage or reduce certain behaviors.
For example, by exempting from the negative measure of prohibiting rent chase and increasing the behavior of landlords to reduce rent, it can be said to be a negative reinforcement.
There is also the so-called "nudge" theory in public policy. The Nobel laureate in economics Richard Thaler is the main advocate. He advocates that the habits of thinking can be used to influence public behavior. Many users want to print on both sides because they are too lazy to change the settings.
Two months ago, Leung Cheuk-wai, a government expert consultant and dean of the Faculty of Medicine of the University of Hong Kong, suggested that residential care homes for the elderly should adopt a tacit consent mechanism.
It goes without saying that people want the freedom to do whatever they want.
In the past, Hong Kong believed in a small government and a big market, and became more accustomed to non-interference in society and the market.
However, in order to achieve the goals of public policy and promote the benefits of all people in the society, the government cannot do nothing. Whether it is rent reduction for landlords, vaccination, driving consumption, suppressing property prices, protecting labor rights, etc., policies have never been The government can do more than force and let go regardless of the binary opposition.
Leung Chun-ying, who took office, once said to be "moderately active", while Carrie Lam said to be "active and active". In the face of the double blow of the epidemic and the economy, the government absolutely needs to be more active and active than before, not just appeal and propaganda.
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