Legco Backs Lifeline For Firms Struggling With Rent

The Legislative Council on Thursday approved the government’s plan to temporarily ban landlords from evicting or taking legal action against businesses that fall behind in their rental payments during the ongoing Covid outbreak.

Authorities had tweaked the three-month moratorium plan since it was announced in the financial secretary's latest budget.

The relief can no longer be extended for another three months, and the government will also provide interest-free loans to small landlords who will be affected, subject to a cap of three months’ worth of rent or HK$100,000.

Louis Loong, who represents the real estate sector, said the policy is not fair to landlords.

"I'm against using legislative means to intervene into private contracts. Even if it's temporary measures in extraordinary times, it will inevitably undermine Hong Kong's reputation as an international financial centre," he said.

Loong also said other countries that have launched similar moratorium schemes have rolled out support measures, unlike the Hong Kong government.

Peter Shiu of the Liberal Party, who represents the wholesale and retail sector, said the scheme will help the trade.

He said he expected businesses to also benefit from the latest round of consumption vouchers.

Financial Secretary Paul Chan told the lawmakers that the government is confident the moratorium scheme could stand up to legal challenges.

He conceded that the plan will harm the interests of some people in society, but said he hopes the community can come together to get through this challenging time.