H.—42.

66

[H. HOLLAND.

Christchurch, Thursday, 25th January, 1917. Henry Holland examined. (No. 28.) 1. To the Chairman.] lam Mayor of Christchurch. With regard to the object of the inquiry, the difficulties that have arisen in Wellington ami in other large centres are not nearly so acute in Christchurch, for the simple reason that we have very little freehold property within the borders of the city. The city lost all its endowments in the early days, and we have therefore no property for letting inside the city. But the city has endowments in various parts of Canterbury. Our custom in the past has been to call for public tenders for the purchase of leases, and apparently owing to strings being pulled the citizens have not got full value for their property in all oases. In one typical case down south we got 2s. lid. an acre for twenty-one years, and the lessee about a year or fifteen months after he purchased it put some improvements upon it — I do not know how muoh —but he got £1,000 for the value of his interest in the property. The purchaser then, about nine months later, sold out again, and he cleared £500 for his interest in the property. It seems to me therefore quite evident that the citizens are not getting full value for the land. In another case at Bromley public tenders were invited for the purchase of a lease for five years. It was put up in two lots and let to two different persons, and the person who had had it previously agreed to pay £50 to the new tenant to cancel his lease. He has now got control of the lot, and has just recently sold it for £250. How to obviate that is a difficult problem, but we have decided that in the future we shall employ an expert valuer to value all leases that fall in, and that we shall put the property up at an upset rental accordingly. In addition to the private valuer's estimate we shall have the Government valuer's estimate, and in that way we shall be able to protect the interests of the citizens and get reasonable value for the properties as they become due. We have no leases granted with perpetual right of renewal. Our leases are for a fixed term, and we cannot interfere until the term expires. Before I became a member of the Council the term of lease was twenty-one years, but- since then it has been reduced to five or seven years for agricultural and pastoral land. I think there is a condition that we take the improvements over at a valuation at the end of the term. I do not think we have ever had a dispute which has had to go to arbitration. We have been always able to fix the matter up amicably. I might mention another instance where the city has not been getting value for its property. We have a reserve of 100 acres at Rakaia. It was let by public tender for ten years at £10 a year. At the end of that term tenders were called, and the same person got it for an additional ten years at the same rental. Then it was renewed for two years at £15. The tenant complained that the term was too short for him to get crops off it. We went down and inspected the property, its we felt it, was worth 6s. 4d. an acre instead of 3s. We invited tenders, and the same man offered 16s. an acre, and it was finally leased at 21s. an acre. The only experience I have had of the perpetual-right-of-renewal system with revaluation of rent was in connection with it property upon which the buildings were in such a dilapidated condition that the Health Department ordered some of them to be destroyed. That was a property belonging to the Church Property Trustees. The land was ultimately sold by auction by consent of the Supreme Court. George Henry Mason examined. (No. 29.) J. To the Chairman.] lam Registrar of the Canterbury University College. The college has large endowments, but very little city or suburban property. We have no property at all within the boundaries of Christchurch, but there are some reserves which were set aside a good many years ago in some of the smaller towns, but in nearly every case, with the exception of Ashburton, the reserves were in portions of the township which at, one time were expected to become the business portions, but which have not turned out to be so, and consequently they are of very little value. The one exception probably is a very good business site in Ashburton, and that is at present under a fairly long lease. At the time that was leased very little encouragement was given by the Board of Governors for improvements, and the result is that the building on that property has been there for a good many years. A few years ago there was an application on behalf of the lessee that a clause be inserted in the lease for compensation. It was agreed to insert that provided the plans were approved of. I, do not know why, but they have never submitted plans. Evidently they have dropped the idea of building, and there is no provision in the lease at the present time for compensation for improvements. The Board, however, is quite willing to insert a clause for compensation at the end of the lease if they desire to rebuild. The lease is for twenty-one years. With regard to our country lands or suburban lands, the leases are for twenty-one years, the lease to be put up to auotion at an upset price fixed by the Board. There is a clause in the lease giving the right to compensation at the end of the lease for all improvements that are approved by the Board. The Board does not require anything elaborate in the way of buildings, but they merely want, some sort of idea of the class of building or improvements that are going on the land. A few years ago we had a little experience of arbitration in connection with revaluation of land and improvements : that was in connection with one or two of our farms in South Canterbury. The result was not considered very favourable to the Board. If there was a difference between the two arbitrators the umpire generally decided in favour of the lessees. 2. To Mr. Milne.] The lessee is generally satisfied with the valuer we appoint. If he is not satisfied with the one we first suggest we then suggest some one else. We do not attempt to arrive at the values by agreement. The Board has always reserved the right: to fix the maximum amount of compensation that shall be attached to any one lease, simply to prevent any possible