Freeze blamed for shop sale

Press, 30 June 1983, Page 2

Freeze blamed for shop sale

A Rangiora man says that inflexible rent freeze regulations have forced him to put on the market a block of shops he owns to raise money to cover mortgage payments. Mr W. R. Finnerty built the shops in 1979 as a lifelong investment but has been forced to put them up for sale after only three years. “When the first tenants moved in, I kept the rents down until they became established in their new businesses. Rents were set to cover costs only. “Unfortunately, just when rents were due for reappraisal the rent freeze came into existence and I was caught,” he said. Mr Finnerty said he was now losing about $2OO a week. Interest rates, insurance charges, and other fees had all increased in that time yet he had to keep the rent at the same price. Mr Finnerty applied to increase his rent under the hardship provision recently announced but it was de-

dined because the shops are owned by a company and not an individual. “My wife and I are the only two in the company,” he said. Mr Finnerty said that he had written numerous letters to the Minister of Housing, Mr Friedlander, “without any joy.” “All I want is the right to apply to recoup the extra charges incurred since the freeze started,” he said. “By selling at this time, I am also going to get caught with the new • legislation which came into power on April 1 which means I will also have to pay the equivalent of a capital gains tax. “One reply I received from Mr Friedlander said that the recent substantial reduction in the level of personal income tax should compensate to some degree for any adverse circumstances brought about by the Government’s efforts to break the inflationary spiral,” Mr Finnerty said. “My wife’s income tax actually increased.”