GOVERNMENT LIFE INSURANCE DEPARTMENT.

Auckland Star, Volume XXVII, Issue 88, 15 April 1896, Page 2

GOVERNMENT LIFE INSURANCE DEPARTMENT.

PROPERTY LIABLE TO BE RATED,

At the Assessment Court, jasterday, Mr H. W. Northcrofb heard *an adjourned ob<" jection lodged by Mr W. J. Speighb" manager of the Auckland branch of the Government Life Insurance Department, to the local offices being placed on the valuation roll. The property was assessed at £9GO bub exemption was claimed on tha ground thab the building was fche property of the Queen.

Mr Cotter, city solicitor, and Mr Gulliver, valuer, appeared in support of tha valuation, and Mr S. Hesketh appeared oh behalf of the Government Insurance Department.

After bhe evidence of Mr W. J. Speight had been taken, Mr Cotter gubmitted thabthe Insurance Department was distincfc from all of the other departments connected with the Government. The Crown waa merely a trustee for the department, which in the name way was trustee for the shareholders or policyholders, and urged thab the Crown was only a bare trustee ; moreover. that it waa created as a trueb for the policyholders by an" Acb of Parliament. The profits of the department could nob be used as the Customs revenue, bub were earmarked, and ab the end of every three years were reported upon by the actuaries, who decided how much should be eeb aside> for a reserve, and the balance was divided among the shareholders, or, to speak more correctly, the policyholders. Mr Cotter drew attention to the facb that provision was actually made in section 3 of the Government Life Insurance Act, 1891, tbab " all rates and taxes from time to tome, due or payable on real property vested in Her Majesty the Queen for the purposes of the Government Insurance Department, sh*U be payable oub of the Government) Insurance account." The insertion of such a section in the Act showed thab bhe Legislature anticipated the liability of the properby of bhe Insurance Department to be taxed. Mr Cotter quoted a judgment of Mr Justice Richmond in the case Kiwitea Highway Board v. the Wanganui Harbour Board, in which ib was laid down that the endowments of a harbour board are rateable property, nobwibhsbanding bhab the land continues to be vested in the Queen.

Mr Heaketh said the Crown was directly responsible if any loes occurred, and was nob.a. " bare trustee," bub a trustee with very high responsibilities; The land was vested in Her Majesty the Queen, add occupied by the Department as her servants. As for the tact thab bhe Department bad paid the rates in past years, thab he considered as no proof of liability, and Mr Speight had first been instructed to object on the presenb occasion. He submitted thab the funda became Crown funds by being paid into the Treasury, and were nob ear-marked. The section 3 quoted by his friend did nob place any fresh duty upon the department, and he took ib that it waß inbended to ineeb rates and taxes, jfthey should arise, and did nob necessarily entail bhab rates were due. He urged thab the properby was distinctly Crown, and, therefore, entitled to be struck off.

Hia Worship said be thoughb they were in the same position as the Wanganui Harbour Board, which Mr Justice Richmond had stated so very clearly. In whab other Government department, Mr Northcrofft asked, did the profits go to private individual ? After the actuary had gone through the profits and set apnrb a portion of the money, the resb was paid to tho policy holders, as in any other company. He thoughb the objection should be dismissed. His Worship mentioned that if he did nob allow costs he did nob think they could appeal, and to obviate that it was decided thab the question of coats ebould be reserved.