Judge Hits Out At 1942 Values

Chronicle (Levin), 9 August 1949, Page 3

Judge Hits Out At 1942 Values

CHRISTCHURCH, August 8. Some comment on what was required of the Courts by the Economic Stabiiisation Act, was made by Mr Justioe Northcroft in the Supreme Court today. His Honour was giving reserved judg ment in a case in which the Court was asked to fix the fair rent of the cabaret and reception rooms in the Mayfair Theatre building. Ai'ter reviewing the evidence for the apjjlicants and argument by counsel for the rents officer, His Honour said: "There remains only to give to the general purpose of the Economic Stabilisation Act 1948, that consideratiou which, by section 9 of the Tenancy Act, is required of the court upon such au appiication as this. Section 3 of thai Act says that 'the general purpose of this Act is t.o promote the economic stability of New Zealand. ' The promotfon of the economic stability of New Zealand involves a wide knowledge and a discerning judgment aiong highly spe•eialised lines on the part of the promoter. One is at times dismayed upon reading the eonflieting opinions qf statesmen, politicians, professors, bank ers, journalists, businessmen and other s. .1 suspect it must be hard to deeide "• what will or will no' nomic stabil t fear it is not a .... i ,for this Court. Not even t nor his counsel felt eompetent to oi'l'ei to guide me t.hrough this" dialeetical wilderness. They gave only the negative help of refraining from criticism of this present "appiication on the ground thal it was against national economic stability. • ' 'I think I may venture upon this opinion at least: That it cannot be economically sound nor making for stability, to maintain the earnings of this property at the, 1942 figure while the value of those earnings is steadiiy shrinking through the increased costs of commodities and services necessary to maintain the property and its own - ers. That can lead only to the ruin of the owners. To apply 'that reasoning nationally, I suspect that if the process goes f ar enough, it may lead to wholesale brankruptcy and a toppling over of the national econpmy instead of to stability. In the circumstances of this case, I see no danger to the stability of the national economy if I do that which both parties agree is just and equitable and allow the landlords to receive a >'fair rent' when is fair in fact instead of one which is called fair only by tbe use of a legislative euphemism,'"