CITY LEASEHOLDS.

Dominion, Volume 2, Issue 585, 13 August 1909, Page 6

CITY LEASEHOLDS.

.BORROWING POWERS INADEQUATE. DEPUTATION TO THE HON J. CARROLL.. With a view of urging tho introduction of legislation' enabling the. Government and privato trustees to lend on the security of improvements effected,on.properties held under Glasgow aJid similar leases, a deputation consisting of Messrs. Bolton, Corrigaii,'and Kcnnody waited' on tllo Acting-l'ri ie Minister - (Hon. J. Carroll) yesterday'afternoon.Mr. Luke, M.P., in- introducing - tho deputation, said that.' the question at issue alloc ted municipalities and harbour,, boards throughout the Dominion. He wished, first of all, to point out that the Government had affirmed, the leasehold system which' had obtained a firm grip of the community. If it were to remain a cardinal plank in the policy of tho Government,, lessees-would require (to a certain extent) privileges in regard to loans such as wero afforded freehold' owners. No one could deny that- some of the, finest establishments in Wellington were erected on reclaimed land, which was held on lease either from the municipality or the harbour boatd. He . would not say that as. much should bo. lent on a leasehold property as on a freehold, property, but tho. proposal, which would bo brought forward should be alErmed. Hospital and benevolent homo trustees, as well as trustees of privato estates, would also like to. see the proposal adopted. Hp ventured to say that a leasehold, upon which was Greeted a fine warehouse, offered just as good security as a freehold on which was erected an inferior structure. , - •

Mr. .Bolton emphasised the point that in, some ■ cities reclaimed land was tho most valuable. The deputation represented 200 individual lessees, including mcstlof the prominent merchants here. It also represented ■tho feeling in other centres.; He might also mention - that- tho ; deputation was 'ill . the unique position of being opposed by 110 one. AlJ' the local bodies were -in favour,of th'eir proposal, which was, briefly, that' privato [trustees, and the various Government* Departments . should bo allowed to lend' to holders of renewable leases a reasonable pro- 1 portion of the value of the,' improvements, which thpy effected. ■ Parliament had already, affirmed, the principle of lending ou certain leases, e.g.,. Crown . leases. ■ 'lhero, was a general provision in tho Advances to Settlers Act which empowered .the (-Jovornmont Advances Department tb lend to holders of perpetual leases wherever tho property was situated, but they were in doubt as to whether the provision applied to leases similar tq the Glasgow lease. The proportion which a lessee could secure on his improvements was a matter for.Parliament to' decide. " If a half to three-fifths wer<T allowed, it would be a great advantage, to firms who had been hampered in the past. . In one of- the Statutes there was power' to -advance onethird, which was of no use .at' all. . : The Hon.'J,' Carroll, in reply, said that: he would not, on that'occasion, go so far as to discuss tlie'. advisablonfcss of such .legislation as. 'had been proposed. Ho could, however,' assure the deputation that he would lay the whole matter before Cabinet, and. .faithfully represent the views which bad been sot forth to nis colleagues. . had ,no doubt 1 that, if-the authority. sought was'given, considerable business would result between tenants and londing institutions. It was true that the Government had adopted the principle, in regard'tQ, Crown leases, but then the, Advances to Settlers Department was a. Go-' vernment institution, and it lent' in. order; to improve thoy assets of tho,Dominion.' There' was, it would be seen, just a»slight' differ-' ence between the. two things. Ho quite realised that from the standpoint of the- deputation improvements in respect of any l lease should stand on their .own bottom.; If the Government decided to legislate, no doubt ; the" deputation 'would give it ' all ; assistance in the matter of details.", ' Mr. Bolton: We court the fullest inquiry. The deputation, having thanked the Mini-' ster, -then withdrew. ,