CROWN LEASES

Press, Volume LXXVII, Issue 23448, 1 October 1941, Page 6

CROWN LEASES

AUTOMATIC RENEWAL PROPOSED DIFFICULTY IN FIXING RENT (P.R.) WELLINGTON, Sept. 30, The term of certain leases and ll» cences administered by land boards will be extended for five years by a clause in the Reserves and Other Lands Disposal Bill, introduced and read a first time in the House to-day. It is explained that between 1941 and 1946 some 3000 Crown leases, with an aggregate annual rental value of more than £ 149,000, are due to expire. Under the present unprecedented conditions, it is becoming more and more difficult for valuers, appraisers, and arbitrators to arrive at a sound basis on which to fix rentals for renewal leases for terms extending over the next 20 to 30 years. The purpose of the clause is to extend for five years all leases that are due to expire in the next five years, where they have a right of renewal, whether absolute or contingent. The proposal.was first brought under notice when a request ' to this effect was received from 29 lessees of a settlement in the Canterbury district. The leases, which expired in June, 1941, but in which finality regarding rentals has not been reached, come within the scope of the clause. Where, on renewal of any of these extended leases, it is found that the rental for renewals is less than that of the expiring leases, provision is made for the lesser rental to be charged as from the date of the original expiry by crediting overpayments during the five years’ extension tp the renewal lease. Provision is also made to meet any possible cases where it might be a hardship compulsorily to extend a lease, for any lessee to surrender his lease on such terms and conditions as the Land Board and the Minister may determine. Cases where the existing rental is considered too high can be met under the ordinary provisions of the Land Act relating- to remissions of rent. If a lessee has already given notice that he does not desire a renewal lease, then this clause does not apply unless the lessee'so desires it. J „ Another clause suspends the bperation of the revaluation provisions of the Land Act until the end of 194*5, the reason given being that it is well) nigh impossible, under _ existing_ con 4jfi°h?> to arrive at a fair valuatioMrfWh»«3M purpose of fixing rentals of J o r|| „ ||[J varying terms in the ■■/®ij adds that if the position is /MU stable in 1943, further suspen«St-JRy\ be necessary. The clause wul rot affect the rights of those lessees wro have already lodged applications for revaluation and paid the prescribed fee before the passing of this legislation. _