STATE ADVANCES RENTS

Hawke's Bay Herald-Tribune, Issue 139, 29 June 1937, Page 6

STATE ADVANCES RENTS

-Press Association.)

Complaints About Increase TENANTS' P0SITI0NS BETTER

(By Telegiaph—

WELLINGTON, Nast Night. Reference was made by the AttorneyGeneral, Hon. H. G. R. Mason, today to the complaints about the actiou of the , State Advances Corporation in raising house rent's. It is reported that in Hutt Valley the rents, on some houses have been advanced by from 2/(3 to 8/6 a week. Mr Mason said that the Fair Rents Act which was passed last session applied to the Government just as fully as to any private individual. There was no desire on the part of the State Advances Corporation to secure genera] increase in rents. In many cases, however, where tlie -.mcomes of the tenants had been seriously reduced in the depression, the corporation had aecepted very greatly reduced rents in order to assist them. Where, however, the circumstaiices of tlie tenants hadimproved sufficiently to enable them to pay a'fair rent, the Corporation had written sugesting that the rent should revert to a fair basis. Tlie letters forwarded by the Corporation indicated wliat it considered was the fair rent of the property concerned and asfeed the tenant if he agreed to this hgure to have the proposed rent submitted to an Inspector of Factories for his approval. Under the terms of the Fair Rents Act no increase can be' effective unless the iandlord and the tenant agree and the rent is approved by an Inspector of Factories or an order is made by a Magistrate. Where the tenants do not agree that the" rent suggested .by the Corporation is fair, they may either refer the' matter tQ an Inspector of Factories for his 'decision or allow the case to be submitted to a Magistrate whose orrjer will be made only after all the circnmstances of the case are taken fully into consideration. Referring to the use of the expression State-owned houses, Mr Mason said that it disclosed a complete misunderstanding. "The State owns none of these houses, nor does it receive for itself any part of the increaSed rent asked for," he said. "The State has not a free discretion. It is under a legal, as well as mcral obligation to use diligence in dealing with properties, and every mortgagor can hold it strictly to account if it fails to obtain the full fair rent."