Secretary for Housing, Planning & Lands Michael Suen expressed disappointment with the judgment the Court of First Instance of the High Court handed down on the judicial review of the Housing Authority's decisions to defer rent review in favour of the applicants.

"It is a very important decision which will affect our policy in the determination of rent and will have an impact on the financial situation of the Housing Authority," Mr Suen said.

"We need to look into the details of the judgment and take advice from our legal advisors before we decide the next step to take."

In October and November, 2002, two public housing tenants from Kwai Chung Estate applied for leave to apply for a judicial review in respect of the Housing Authority's decision to defer the review of rent of its public housing estates in 2001 and 2002.

The Court heard the cases on May 12 and 13. The pair claimed their rents had exceeded the ceiling of 10% of the median household income as put forth in the amended Housing Ordinance passed in 1997.

Although the Housing Authority had frozen rents for several years, household incomes had slipped during difficult economic times.

Mr Suen said, "As the judgment has a profound impact on the Housing Authority's overall rental policy and financial position, the Authority is seeking legal advice and at present is not in a position to comment any further."