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HIGH RENTS

\\',;:/ -—— "^H— —.".'. , •':"■ THE 8 PER CENT. PROVISO ■■"...;';-.'■. | ■ —■ .■'.-■■■>■■; , A jCOWPLAINT AND A REPLY ' ; ' 'A statement on the effect"'of tho legislation to restrict rents during the ■■' war period, and its operation in Wellington in particular, was mado by the Primo Minister yesterday, in reply to a complaint on the subject published 1 by Mr. M. J. Reardon'. Tho following was the) text of a letter forwarded by Mr. Reardon to the Prime Minister: — ■ ;"Youwill remember," writes' Mr. Reardon, "thatywhen wo'were talking ~;. over the: proposal to allow.B per cent., you disagreed with tho opinion expressed by me as to the effect of the amend- < ...■'■• i ment,;.- I held the' opinion that the new 'clause would enable tho landlords to . increase their rents. I have now sub- ... ". stantial proof, that ;the landlords are ■.■.'.''eetting !out. to further increase tho already high rents .imposed in Wellington City." Since yestcrday_ three bases have' come under my I notice in ' which substantial .increases are>asked for abovo what.wero being paid before the '■' war."- " - : Particulars of the cases, are given as follow: —■ • ..-,' (1) A railway employee, living Newtown, went into: .the house four' .years ago at a rental of 17s. per week. Later this was reduced to 16s. 6d., but raised again to 17s; 6d.' This was be- ,; fore the war. Since tho war the rent ;:' hasbeeiv further increased to 18s. 6d., -' and. has now been raised within the 'last-few .weeks-to 20s. Pending the : passing of the War Legislation Atuend/'ment Act, the tenant continued to pay -.■':■' .'bis'former; rent' only. ■. 'The landlord has now sued him for the difference, ; and for possession of the tenement. Ho ■states'that ho can': get 25s- per week '.for it without any trouble! , ',(2) The tenant in-this caso has been • : -, . paying ,£1 per week for 15 months for a house which is very damp and much . ; out of repair. ■ This.week the-landlord ■has requested: an increase of ss. per . weekas from Monday last.. '..■'.•;•■•'' (3). The tenant in the third 'case.lias" been in occupation for four. or fivey years, starting at 14s. .per week. The .place-was pamted"at;a cost.of prob- .' ably. £10 after .the.tenant !"had been'in _■/'/ occupation iqv about 18 'months:,., The" , rent was.then raised to. 15s..'•'.' Nothing has been, done for the.last.three years,. except that tho draiii,/was occasionally ,'..' cleared. ' A Vbath, was recently put in, at a cost'of ,30s. or £2, and it was now proposed to raise the rent by 2s. .Gd. , per. with tho alternative of ■giving. .;"up possession.' '-.'• .'.".;.;,.'■"'.-.'. ■ I feel euro," Mr. Reardonoontinues, ;'.'. -.' I'tha.t these titreecases.are the ; first of an upward movement of. rents oh tho i ;' part of many of the most unscrupulous ''.' :own;ers, of, the city. I am sure.' also'. ;■ that .these tenants are.not in apositiori ','•'''■ to take 1 test cases under the. legislation | \y. recently passed. But even.if they were, j ,1 feel? sure that it will be pbssiple for ; ■'.. the. landlords .to ! set.;" up.: fictitious ' . ."'■ values, supported by land agents, and'f ■ defeatthe main-purpose of the-Bill. 'In ..' the case of the railway'employee it is,- .." quitb clear that ho would .much rather .'■pay the. extra rent, thanhave his name v ■' -appearing as defendant ;in.".'the- Petty Debt Court, and in other cases that I mentioned,, it is doubtful whether the ; tenants have the means, even if they have the will,; to take up a fight in tho .'.-' Law Courts. ' ."I trust that,' before you leavo the Dominion, you will be able to discover some means whereby it-will ' be possible for you to prevent any. further exploitation until such time as It; is possible for the whole question to ■' lie again reviewed'by. Parliament. Tho fact : that these people' hie',' within a .'week, of; .the., adjournment; of Parlia-, • .'raeht,.demanding 'these .extortionate rents, shows that they feel they have nothing to fear,from the,legislation rc- ■ ..cbntly passed." . . ' Mr, filasseys, Reply,, 7 In reply, Mr; Massey made a atate- .-'■: ment yesterday to a ; Domkion reporter. "Mr. Reardon's .'contention that, it . will be possible for landlords to set up fictitious values, supported by land agents, so defeating the main purposo s I.of tho Act, is without foundation," '■ '■' said Mr.- Massey. "In any proceeding involving the valuation of a dwelling-

lioiise,' the capital valueis to be determined by the Stipendiary Magistrate hearing the case, and the Magistrate is empowered for this purposo to accopt valuation •'.'. made by an. accredited valuer, approved by the Minister of Labour. Although the Act does not so provide, I am satisfied that where the sito on which a dwcllinghouso stands has a'commercial valuo as a prospective business site, as well as its present valuo as a site for a dwellinghouso, the latter will bo the value upon which tho rental must be based." . Mr. Massey referred to the particular cases cited by, Mr. Reardon. Referring to the case (a) that of tho railway employee, ho said: "The Act specifically states that it does not apply to rents that accrued duo before the passing of the' Act. Tho recovery of arrears already dtio is therefore wholly independent of the operation of tho Act. The landlord, however,. is not allowed to evict a tenant for his refusal'to pay an increased j-ent, but only on grounds specifically set forth in tho; Act. ; With respect to, the other, two cases therois only one way to determine their merits. If tho tonants are being victimised by their landlords their remedy is to apply to ' the Magistrate for relief. As to the costs of such proceedings the Magistrate is empowered to make such order . as' ho' thinks proper. If tho Magistrate is satisfied that the landlord is wilfully attempting to ■ make tho, Act ineffective he would doubtless make tho landlord pay the wholo of tho costs. It would be obviously unjust to assume, in every'caso that the landlord was victimising his tenants, aud to have given him no opportunity of proving beforo a proper tribunal that tho rent to'■'which, be was entitled under the. pre-war agreement was unremunerative. It was/the duty of tho Legislature to avoid as far as possible doing an 'injustice to''either party, and the fixing of tho standard rent at tho prewar rate, or, as an alternative, at 8 per cont. of tho capital value was to ensure the landlord a reasonable return for his capital, whilst protecting the tenant from ivndue hardship. That is ihe purposo of., the Act. And iii, should bo understood that 8 per cent, is to be the gross-return, out of which tho landlord has to pay rates, insurance; and repairs; and also to provide for depreciation, which items taken to.gethcr amount to; a' very considerable annual charge. •

Permanent link to this item
Hononga pūmau ki tēnei tūemi

https://paperspast.natlib.govt.nz/newspapers/DOM19160819.2.67

Bibliographic details
Ngā taipitopito pukapuka

Dominion, Volume 9, Issue 2854, 19 August 1916, Page 11

Word count
Tapeke kupu
1,086

HIGH RENTS Dominion, Volume 9, Issue 2854, 19 August 1916, Page 11

HIGH RENTS Dominion, Volume 9, Issue 2854, 19 August 1916, Page 11

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