WELLINGTON RENTS

Dominion, Volume 11, Issue 1, 26 September 1917, Page 6

WELLINGTON RENTS

TROUBLES OF TENANTS MR. HINDMARSH INTRODUCES A BILL Wellington rents were discussed in tho E'ouse of Representatives yesterday, when Mr. A. H. Hindmarsh (Wellington South) moved to introduce his War Legislation Amendment Act, 101G, Amendment JBili. Mr. Hindmarsh said that his Bill wad intended to reduce rents and remove tiie weaknesses revealed in the operation of the legislation of last session. He-was going to appeal to the Prime Minister to tnke some action in connection α-itii the rent question in Wellington. The official statistics showed that a man earning £3 a week had.to pay 15s. a week rent, and that the yre-war value of Ms £3 was only 'M ss. It was a fact that men who owned only one or (wo houses Tiad not in'most cases raised tho rents. But the big landlords had pushed up rents to tho limit. The House had not hesitated to deal drastically with tho liquor question, but he believed . that liquor was less of a -menace to tho happiness of the people than the high and increasing !=yits. _ The existing law did not protect the public, because flie rent was calculated on the capital values, and these values had been pushed j up : during the war period. The land-) lords had been able to take advantage of | the war. It was a well-kuown fnct that rents had been raised in hundreds of cases in Wellington. There was one man owning about 450. houses in the city, and he had put up the rents in every instance. The landlords had not increased their capital or their expenses; they were" simply making use of the war as a means of making profit. He asked Mr.. Massey to consult the Labour Department on the point.' Mr. T. M. -Wifford (Hutt) said there was no doubt that something should be done by the Government to protect the people. He had brought before tho House the case of a State tenant who had his rent increased at Petone, and the Labour Department had made a reply which was almost entirely inaccurate. The Department had said that the increase was due to increased rates and that' the present rent, 13s. (kl. a week, was regarded as low. The facts were that the. rates had not been increased, and that the present rent was I4s. (kl. per week. Wellington had been extremely fortunate in the war. It had made substantial profits froni the neighbourhood of the camps, and one result had been to. increase the troubles of the workers by putting up their rents. Had the House any idea of the pricespeople wer* paying tor single rooms in Wellington? Eents often equalled two or three days' wages. The Labour Department ought to act, but it needed to be spurred to do so. Dr. A. K. Newman (Wellington East) said the matter was of very great importance. Some time ago the Government had bought laud for workers' homes, but no building had been done. The removal of the suburban trains had increased, the congestion in the city, building except for well-to-do people had practically ceased owing to the high price of materials. The Government should build 100 cottages at once, and it should try to reduce tiie cost of building by buying iron in big quantities and carrying timber at reduced rates on tho railways. There was no doubt that tho law limiting the rent to, 8 per. cent, on the capital value was being broken m all directions,' because poor people had not the means of bringing actions against 'their landlords. The present state of affairs was a danger to the community. Overcrowding was not good for the people morally or physically. Mr. It. Fletcher (Wellington Central) said he supported the other Wellington members on this point. The Government officers had helped to produce the trouble by the high values they had placed on city land? Some of the valuations were absolutely exorbitant, and meant great hardship to poor people. The consequence had been serious congestion, and lie hoped the National Government would do something of a practical kind to help tho people during the present session. Mr C. H. Poole (Auckland West) said that Wellington had suffered from being tho centre of military activity. Values had been inflated, capital values had reached fictitious levels, and the peoplo were suffering accordingly. The cutting out of the suburban services had been an important factor, in Wellington as well as in the othercentres, in increasing the overcrowding. Mr. J. T. M. Hornsby (AVairarapa) also urged the Government to take tho matter, in hand and sweep out of existence the slum areas that were disgracing New Zealand cities. • ' Mr. W. A. Voitch (Wanganui) said the value of the attempt, made by the Government to restrict rents had been destroyed by the provision inserted in the Bill that the rent should be 8 per cent, on the capital value. The valuations had been pushed up, ami.tho rents went up too. The basis of the valuatim was wrons. If the rent were fixed, then the valuation would conform to it. Jmt under tho present arrangement the valuation was based on the maximum rent the landlord could get. Kack-reiiting was prevalent in New Zealand to-day. Some landlords had raised the rent, payable by soldiers' wives. A big scheme of construction by the State seemed to Iβ impracticable owing to the high cost cf Zlerials. The Labour. Dep«taenl ought to have the matter in hand, but t seemed useless to look to the Department toW The Labomr Department had become intensely conservative,- and as m the interests of Labour were conceded it was now abso utelv useless It nod been created primarily to witch terests of Labour,, and see that the Labour laws were given effect..But the Department was not <lo,1! S, *^, r t »d ana the wage-earners we re -hav mg a baa time from every point of view, m rrffo^:—n^.^of F^^g^?aTX (^T o rt,:=^vstt^ \f.l°' C Se Cl said all the of tho tar The Bill Had teen , copy of Th:Prfmf«ersaidhedidnot in Sydney, whew rent restriction had 6 X Pe^: in Then yon want a State .M tile' traditional -amount of one day's -wage per W Mr Wilford: One night train per week to Petone and Hutt would relievo a lot he Hid not doubt;tbjjt the on y nav to put back the suburban K*si , Sisr.t , .i..'« The complaint about increnaed J^ 3 ,^ d ed a gr at Increase in population, wh Wthe same time the; «««£ P™° of materials had .placed .(1 in & the difficulties, evented ! y the high cost of material. The elloa of H» military camw In "^f'T ,1, "; Wellington could not be da"Wed. Hβ &rart^«y^ sey thought it might be. possible for the Labour Department to.. nvestigate complaints reading the increase of rent ?nd ascertain if iiPOoeediiigß Act of 1916 were justified. This *ould

'frees the tenants from the responsibility of employing lawyers and valuers, no would consider the point and see if legislntion was desirable. The Valuer-General had pointed out that the adjustment or rente on the basis of 8 per cent, on tho capital value operated unfairly in 6ome cases. A poor house might bo built on "a very costly section, and tho landlord was allowed 8 per cent, .on the wholo property, although tho land -was not a depreciating asset. Mr. Massey added that-ho might be able to embody tins su , »"ostion in legislation. Hd did not iH>prove of the flat system. There should, bo a house or a cottage to each family, and wherever possible tho livad of the family should own the home. lie had little doubt that the Dominion, was on the evo of a very big decreaso in land values. It could not be otherwise with an increase in , the rate of interest and the heavy financial responsibilities tho Dominion had assumed. Mr. E. A. Wright (Wellington .Suburbs) said tho proposal outlined by Mr. Jlassey would give relief to many tenants who were unable or unwilling to take proceedings against landlords. Mr. Hindmarsh, in reply, said that it thero was to be any new valuations the work should bo entrusted to an officer ot the Valuation Department. The .Bill was introduced and read a first time.