CROWN TENANTS

Ashburton Guardian, Volume 53, Issue 150, 6 April 1933, Page 3

CROWN TENANTS

CONCESSIONS IN RENTALS. INTERESTS OF TAXPAYERS. ((Per Press Association) * WELLINGTON, April 5. In the course, of an interview with a representative of the "Dominion," to-day, the Minister of Lands (the Hon. E. A. Hansom) rnaue the following statement in regard to rental concessions being granted to Crown tenants.

"Since April 1, 1932, when special investigations by land boards commenced, rent remissions have been granted totalling approximately £373,000 and in addition, approximately £309,000 of rent has been postponed for various periods," said the Minister. "A considerable portion of the amount remitted is with respect to rents accruing to August 31, 1934, and applies mostly to certain high country leaseholds where percentage reductions of 20 per cent, to 50 per cent, have been approved for periods not exceeding two years. Unfortunately the necessity for further consideration has not been eliminated through the.se concessions and heavy arrears are accumulating in spite of every endeavour to collect annual charges. "The position is a real cause for anxiety which can only be removed by the return of higher prices for our produce. In the meantime it is my department's endeavour to still meet the position by extending consideration to tenants who are up against it financially and who, with a due sense of their responsibility, are making an earnest attempt to meet as much of their charges as their incomes will permit. It should be recognised, however, that concessions cannot be granted indiscriminately and it is the duty of my department, as custodian of a large portion of the Dominion's capital interests, to ensure that whereover possible, revenue moneys are recovered.

Question of Leniency. "It is apparent that the expressed desire-to meet the position of tenants has created an impression that the department will not resort to extreme steps with regard to the failure on part of lessees to observe the provisions of their leases. I desire to make it plain that leniency by the department should not be misinterpreted to indicate that steps would not be taken to recover arrears. It has been demonstrated in many cases that the relationship between rent "and interest charges is dominated by the latter charge. Although rents are invariably only a small proportionate part of annual charges and entitled to preference payment, it is found that mortgagees are receiving interest payments for periods during which the Crown rent is getting into arrear. The department realises that borrowed capital is necessarily j engaged for development and essential improvements for the successful working of land and is quite prepared to concede that a pro rata distribution of revenue is fair on the basis of the value of the respective capital interests. It is not prepared, however, to allow the Crown's interests to be subordinated to private capital charges which, in many cases, are an overburden and not covered by the value of the security held.

No Dictation. "Again, there are cases where there is a disposition on the part of lessees or their responsible agents to dictate the terms on which payments of the Crown rent will be made. Cases are recorded where certain sums are offered provided that the balance owing is written off. The department cannot tolerate a dictatorial attitude as to its actions and policy and it must be conceded that a suppliant' for concessions should not be the dictator. The Government is prepared to make concessions when, after a full investigation the modicum of relief is apparently justified, but the department is not justified in writing off or lightly disposing of rents which may ultimately be recoverable.

"In view of the existing conditions, it is the policy of the Government and the department to give every possible consideration in reason with respect to renttcommitments of Crown tenants. If, however, it is proved to my satisfaction that moneys which should rightly be paid to the Crown are being diverted or held back, meaning in effect that the department is not getting a fair deal, I will have no option other than to support the recommendations submitted by the respective land boards in the matter of taking appropriate action to protect the Crown's and, incidentally, the general taxpayers', interests."