CITY LEASEHOLDS

Dominion, Volume 9, Issue 2840, 3 August 1916, Page 8

CITY LEASEHOLDS

ACTION OF THE GOVERNMENT

THE MAYOR'S IDEAS

The clause in the- Washing-Up Bill discussed in Parliament on Monday evening, which related to the proposed postponement; for another year of tho valuation of certain City leaseholds, caino like a. bolt from tho blue, even to the Wellington members, who were unable to name the parties who had requested the postponement.

On being consulted, the Mayor (Mr. J. P. Luke) stated yesterday that the question of these leaseholds was a very difficult one to adjust equitably, it was well known that differences of opinion had existed between the leaseholders and the council regarding the methods of revaluation for' lenewal periods, and on many occasions there had Been conferences of the parties' representatives to the. council, without getting down to bedrock—a bedrock method that would be satisfactory to the leaseholders, and failto. the City. The Leaseholders' Association had made certain proposals, but the council had been unable to accept them. The leases were what were known as Glasgow leases, but it was asserted that they differed in principle in some.cases from the true Glasgow lease. They were perpetual leases—an original term of 21 years, with revaluation tor rental purposes every subsequent 11-yearly period. He thought he could say on behalf of the council that such a form of lea?e was not considered helpful to the progress of the City—that the original period of the lease was not long enough to encourage people to build dignified structures such as became a city.of such rapidly-growing importance as was the Empire City of New Zealand. Mr. Luke stated that 'the average colonial man of business was, as a rule, past middle age ivhen he was sufficiently advanced in the world and equipped with the experience to build big business premises for himself, with the result that when the first term' of his lease had expired he was a pretty old man, and had to face a. very largely increased ground rental in h'is declaring years for the use of the building he himself had erected. That was only ous angle of the case, but was one that argued for a longer original term of lease. What the Royal Commission proposed to be-set up would do was simply to inquire as to what was the best form of lease for City lands, and the most equitable method of arriving at revaluations for rental purposes. It was sincerely hoped that a model form of lease might be devised, not one that would serve Wellington only, but would be applicable to all other cities in New Zealand. He strongly objected to n form of lease being restricted to Wellington only, as comparisons were for ever being made between the conditions of the city leaseholders .in the various centres. There were about eight leases falling in before January 1 next, and it was file revaluation of those that it was proposed to postpone for a year. Mr. Luke stated that the City Council was fully alive to its responsibilities as guardian's for the ratepayers uf these leasehold lands, and would do nothing that would prejudice the interests' of the community as a whole in dealing with (he question.