The rental affordability of households is better than any time during the entire period from 1984 to 1999, the Economic & Employment Council says.

At its seventh meeting today, members noted that despite property market volatility in recent years, in the long run rentals will move in tandem with the economy. The Government will monitor developments to foster healthy property market growth.

Meanwhile, members were briefed on recent achievements of the Subgroup on Business Facilitation. The Lands Department will delete nine special conditions, simplify seven items and consolidate 10 items into four to simplify the special conditions in the land lease. It will also review the general conditions.

An enquiry system has also been formed to advise landowners on the "before value" for exceptional cases. The department has initiated action on gazetting requirements once the agreement to the transaction is reached to speed up land exchange and modification cases.

Other improvements

The Food & Environmental Hygiene Department will improve the licensing regime for food retail and introduce a composite licence to cover 12 ready-to-eat food permits. The Environment, Transport & Works Bureau has reduced the number of categories of consumer goods to be regulated under the proposed Volatile Organic Compound legislation from 40 to six.

The Housing Department has pledged to complete the processes for scrutinising and approving fitting out works for retail businesses in housing estates in seven working days for simple cases and by 21 days for complicated ones. The Home Affairs Bureau and the Food & Environmental Hygiene Department will introduce provisional licensing for cinemas so operators can start business early and licence discs at ticket control points to enhance public awareness.

Vigorous measures needed

On the recently released World Bank Doing Business Report 2006 and the World Economic Forum Global Competitiveness Report 2005-06, the council considered the reports reaffirmed the need to introduce more vigorous measures to minimise regulatory barriers to facilitate business.

Members also noted the Government will follow up with the World Bank on the discrepancies identified in the source data for the "dealing with licences" and "property registration" components, which have caused a slip in Hong Kong's overall ranking in the World Bank report.

For council meeting papers click here.