PECULIAR METHODS.

Dominion, Volume 5, Issue 1514, 9 August 1912, Page 6

PECULIAR METHODS.

OF FIXING RENT, HOW TIIE COUNCIL DOES IT. Tho committee havo to report that they havo considered tlio application of a tenant of the Mnngaliao endowment tor a reduction in hor rental, and they havo to recommend tlio council io reduce the rental of tlio section to 7s. Gd. per acre per annum, for the following reasons:—(l) Tho iulirmity of tho tenant; (2) the long period of her occupation; t;l) tho Jact that the rent had been run up considerably beyond the upset rental fixed. Tho above clause appeared in tho report of the Legislation and Reclaimed Land Leases Committee at last night's meeting of the City Council. As chairman of tho committee, Councillor Atkinson moved the adoption of this clause, but expressed himself as personally opposed to it. As Ms. Id. Jiad been, offered at auction for the land, there could bo no doubt about what was tho correct legal course to adopt. The committee were unanimously of the opinion that the case was a very deserving one, but thero was a legal maxim that hard cases made bad laws. Councillor Fletcher contended that the council could only lease tho land at tho price bid at auction. If it was desired to make a special concession to tho present tenant, tho. proper method of so doing would bo to give-an annual donation of tho difference between the two prices.

Councillor M'Kenzie said that since tho last meeting ho bad been inquiring as to how past leases had l>een. treated by tho council, and the result of his inquiries would surprise many members. In 1900, thirteen leases were revalued, offered at public auction, and in each case sold to tho previous kssce at tho upset rental. Sometimo after a number, of tho lessees interviewed tho council. They asked that tho values bo set aside, and tho Government valuation for rating purposes should be taken as the basis of value, tbat tho rent bo reduced from 5 per cent, to 4 por cent., and that perpetual lease should bo granted, with revaluation every fourteen years, but tho rent never to oxceed 4 per cent. Councillor M'Kenzie pointed out that in agreeing to these proposals, tho council had done something which, according to tho Wellington City Leaseholds Act, .1885, was illegal. He could not understand how the Audit Department ever passed it. Something similar had been done, continued Councillor M'Kenzie, in connection with two leases which fell duo in 1910. Tho generosity of councillors over those two deals had cost the council in fourteen years a total sum of ,£3436. In the case at present before the council, (Tie tenant—a blind woman—whose rent was fixed by the valuers at Gs. 3d. per acre, and run up to 10s. Id. at public auction, stated that she could not pay such a rent, and offered 7s. Gd. .per acre. This was Is. 3d. more than the amount, fixed by the valuers, and yet councillors said it would be ,a dangerous proceeding to. accept tho offer. If the request .were' refused, it would bo the duty .of the committee to re-open tlio past' leases. Ho moved that the clauso in the report bo referred back to the committee. .• The amendment was seconded by Councillor Trevor, and gave rise to considerable discussion, ;but was eventually lost by 11 votes to '&'. Subsequently, tho clauso was lost, and the report of the conimitteo was adopted without the clause.