Struggling Businesses Back Rent Moratorium

Businesses hit hard by the government’s latest Covid-19 restrictions have on Sunday joined hands to support the Financial Secretary’s three-month rent relief proposal, saying the arrangement is urgently needed to help them ride out the current crisis.

The scheme was announced in Paul Chan’s budget proposals last month. Under the plan, landlords will be barred from evicting or taking legal action against businesses that fall behind in their rental payments during the current Covid-19 outbreak.

Any violation during the three-month “protection period” – which begins when the proposed plan becomes law – will be liable to a fine that equals to two times the amount of the rent claimed, and in any event not less than HK$50,000.

Speaking at a joint press conference, bar operators, along with representatives from the beauty, fitness, and furniture industries said large landlords have either stayed silent after the announcement, or have sent legal letters to businesses that have fallen behind on their rent – before the proposal takes effect.

Joseph Ho, president of the Cosmetic and Perfumery Association, called on the government to proceed with the legislative process as soon as possible, saying it is high time that landlords give them a break.

“Honestly speaking, we are quite frustrated, because we think that this it quite a humble request. This is only a postponement of the rent. And actually, we would like all the landlords to go hand in hand with us to find a way out, to keep the ball rolling,” he said.

Representatives from the yoga fitness and home entertainment sectors, meanwhile, said landlords should also consider offering affected businesses a lifeline by cutting rent.