CITY LEASES

Dominion, Volume 9, Issue 2838, 1 August 1916, Page 6

CITY LEASES

- REVALUATION POSTPONED AGAIN AT WHOSE REQUEST? WELLINGTON MEMBERS BROTEST Last year a olause was inserted in the "Washing-up" Bill to delay the date of the revaluation for the assessment of rent on Wellington _ City leases until January 1, 1917. This was done in consequence of disagreement between tho City Council and the lessees, and it was Understood that tho Government would givo the matter consideration during tho recess. The. Government found it impos. siblo owing to pressure of other business to make tho investigation, and in the "Washing-Up" Bill now before the House there,.is a clause to postpone revaluation until January 1, 1018. When the clause was being considered in Committee of the House last night, Mr. A. H. Hindmarsh urged the Prime Minister lo redeem tho promise made that an Enabling Bill dealing with the whole matter should be pul through this session. Mr. Massey said; he was unaware of any such promisrf having been made. The matter was really under the control of the Minister of Internal Affairs. The Hon. G.- W. Russell said that the more Wellington City leases were examined the moro difficult and complicated tho problem became. During the recess he had had from the Wellington City Solicitor copies of forms of lease, and honourable members would be surprised to know that thero were no fewer, than four forms of lease under which lands were held from the Wellington City Corporation. There were in Wellington largo areas of land that were not built •upon because tho tenure offered was not sufficiently secure to encourage persons to erect valuablo buildings such as the sizo of the town would warrant. If he was not mistaken, somo of ■Uie leases were for 11 years and somo for 21 years. What man or company would put up a build-* ing worth .£50,000 or ,£IOO,OOO on a section of land if he knew there was to ho revaluation in 21, years? Mr. Hindmarsh: They have done it. Mr. Russell said that land m a big city could not be compared with rural land in a question of this kind. Sometimes in a city there were changes of traffic which might tremendously affect the value of properties. After tho matter had been most carefully investigated, it had been decided that legislation shouldbe postponed, and that during the recess a Royal Commission should bo appointed to inquire into Wellington leases and to report as to what legislation was desirable to give security of tenure to those taking up leases, and so to enable the City to grow and , progress as it should. 1 ' If long leases were given, suitable ' buildings would be put up in accordance withi the dignity and future greatness of the city, .instead of small and inefficient buildings tuck as were now sometimes used. The proposal to set up a Royal Commission was made because it was not possible to lay down without inquiry cast-iron rules in legislation to apply to the whole Dominion, and to apply specially lo Wellington city. Mr. It. A. Wright said he desired'to point out that so tar as he knew—and he was a' member of the Wellington City. Council—the council was not in favour •of tho clauso in the Bill. Ho would like to know who was asking for the .clause. On behalf of the Wellington City Corporation he wished to say that it needed the funds. The lessees had •raised objection to tho revaluation of their leases, and the revaluation was postponed for a' year. Now it was proposed to delay it for another year. An hou. member: Why don't you move to strike it out? Mr. Wright said he did not caro to do this because it might lead lo more complications. Dr. A. K. Newman said that he would like to know who proposed v this clause. Not one of tho Wellington members know anything about it until it came down. Mr. Massey: It is .introduced by the Department. TJi'. Newman: In' the inU'rests of the lessees? > He took strong exception to tho proposal that, a Commission was to be set up to regulate affairs in Wellington. Mr. Russell: They are'only to report. Dr. Newman said that the people of Wellington did not want anything of the sort. They'did not want any Government interference at all, being quite able to manage their own.affairs. Mr. Hindmarsh urged that consideration, of the cluuso should bo postpouod. Tho' Minister said that peoplo would not erect big buildings on lands over which they had twenty-ono years' leases 4 with perpetual right of renewal, subject to revaluation. If the Minister set out with this idea he would probably appoint people to the Commission who 'held tho same opinion. If tho Minister would' use liis eyes ho would not 'make such statements. Many important buildings were erected on these leases, and he men. tioned a number of them. Mr. C. E. Statham said that in Dunediil the Glasgow leases worked admirably. , Tho council would lose nothing by tho postponement of the valuation, becauso in the event of the valuation being increased the lessees would have to pay the back-.Tent. The Prime Minister said he would hava no objection to the clause, going back to the Lands Committee, and ho moved that it ;.be"' postponed. Tho clause could not >be withdrawn becauso something would have to be done about Wellington leases. The clause was postponed accordingly.