POWER OF PURCHASE

Gisborne Herald, Volume LXVI, Issue 20115, 8 December 1939, Page 5

POWER OF PURCHASE

SHIPPING CONTROLLER DOMINION VESSELS WAR SERVICE USE (Por Press Association.) WELLINGTON, this day. Authority for the Director of Sea Tarnsport compulsorily to purchase vessels, if it is deemed advisable, is contained in amending regulations gazetted last night. Under the principal regulations power is given to the Director of Sea Transport to requisition and take up New Zealand registered ships on charter for anti-submarine, minesweeping or examination service, and several vessels have been so requisitioned. It. lias been found in several cases that the rates of hire, especially in respect of the older type of vessels, are such that a saving would result it the vessels were purchased by the Crown. In each case of a proposed purchase the director is required, as soon as possible after he has given the necessary notice of acquisition, to fix the price for the vessel based on a fair market value at the date of acquisition, together with any special value to Ihc owner due to the use made by him of flic vessel, but excluding any enhancement of t’ne value arising from war conditions and their effect on the mantel and excluding also any consideration of special value due to the fact that the vessel is a component of a fleet or service.

If the owner or any person having a registered, interest or charge on the vessel does not agree with the price fixed, the regulations confer the right to apply to a magistrate to fix the price to be paid. It is not expected that the regulations will be used to any extent. A further amendment to the principal regulations extends the power of requisitioning to any 'small Vessels such as launches, which may Ibe required Ifor service and are not required by the Imperial Merchant Shipping Act, 1894, to be registered.