COMPENSATION MONEY

Evening Star, Issue 24333, 23 October 1942, Page 2

COMPENSATION MONEY

QUESTION OF DISPOSAL Mr Justice Kennedy gave his judgment this morning in the matter of an app.ication made py the Otago Harbour Board for the disposal of the compensation money of £o, (50 tor land owned by the board and taken by the Public Works Department, the money to be paid to the Otago Harbour Board Sinking Fund Commissioners, or, alternatively, to be applied to the purchase of land by (lie board, and the balance invested in securities. The money was paid by the Public Works Department to the Public Trustee, who is the custodian of the money in terms of the statute. His Honour stated that he was satisfied that the Otago Harbour Board had a qualified interest and that section 92 of the Public Works Act applied. It might well have been that the convenient course would have been to order the purchase of lands to replace the lauds taken, but the Harbour Board, although it found that it might purchase land valued at £1,500, really did not at present need additional land. . .

His Honour went on 10, state: “1 see no reason why the Otago Harbour Board, which held, the land itself upon the trust set out in the certificate of title, should not hold the securities in which the moneys are directed to be invested upon the trusts declared in the settlement. There will, therefore, be an order in the first place that the costs of the Sinking Fund Commissioners. fixed at twelve guineas and disbursements, ’ and of the Public Trustee, fixed at seven guineas and 'disbursements, be paid out of the said .compensation moneys by the Public Trustee. There will bo a further order, under S. 92, (hat the remainder of such compensation moneys be invested by the Public Trustee in the purchase of securities authorised for the investment of (rust funds in New Zealand, and that such investments be held by the Otago Harbour Board upon trust as an endowment for the improvement of the harbour of Dunedin and the construction and maintenance of such docks, piers, and other works therein as may be deemed advisable for facilitating the trade and commerce of the town and port of Dunedin, and that the said securities be delivered over to the Otago Harbour Board upon the execution by the Otago Harbour Board of a declaration of trust in terms of the deed lodged herewith.”

At the original hearing Mr A. C. Stephens appeared for the Harbour Board. Mr J. M. Paterson for the Sinking Fund Commissioners, and Mr W. Brown for the Public Trustee.