Mr Nash Threatens Repeal Of Tenancy Amendment Act

Press, Volume C, Issue 29671, 15 November 1961, Page 16

Mr Nash Threatens Repeal Of Tenancy Amendment Act

(N,Z Press Association)

WELLINGTON, Nov. 14. The Labour Party, on becoming the Government, would make the payment, demanding or receiving of key money for the renewal or extension of a tenancy illegal, and would provide a penalty of £lOO, plus the return of key money paid at any time within 12 months of a prosecution and costs, said the Leader of the Opposition (Mr Nash) in the House of Representatives to-

night during the third reading debate on the Tenancy Amendment Bill. “We'll stop that kind of thing happening,” said Mr Nash.

Mr F. Hackett (Opposition, Grey Lynn), who was Minister of Labour in the previous Government, said he had evidence of a case in which the landlord demanded payment of £lOOO before he would enter into a further lease.

“I am wondering whether the Minister of Finance regards the transfer of £lOOO as a capital gain," said Mr Hackett.

The Speaker (Mr Algie): The House cannot tolerate that in a third reading debate. Mr Hackett: Ever since the second reading debate I have been deluged with telegrams and telephone calls, not only about what is happening in Auckland, but all over New Zealand. He cited the case of a foreigner who had been a refugee to New Zealand in 1939 asking a man who had been a fighter pilot for £5OO to £lOOO as a condition for the renewal of his shop lease.

“Had I known about this matter when I was Minister of Labour, I would have acted on it. It should be treated as illegal," said Mr Hackett.

Mr W. A. Fox (Opposition, Miramar) complained that the bill enabled the bad landlord to extort sums of money from the good tenant, but it did not protect the good landlord from the bad tenant.

“Everybody will agree that the payment of key money is wrong. The Government

talks about encouraging the small businessman, but what encouragement is there for the man who has built up his business by consumer contentment, and finds that he had to pay key money to renew his lease?” Mr Fox Mr D. J. Riddiford (Government, Wellington Central) pointed out that the key money went from the incoming tenant to the outgoing tenant and was a natural concomitant of rent restriction.

“The tenant who is not paying sufficient rent to cover the repairs is getting a very valuable right, which he can sell when he assigns the tenancy and, of course, he demands key money. Hie Opposition is trying to set tenant against landlord, but that is far removed from the facts of the case,” said Mr Riddiford.

Mr R. Macdonald ( Opposition, Ponsonby) complained about a man who had to pay £5OO to get into premises. The Minister of Labour (Mr Shand): When did that happen? Mr Macdonald: A month ago. Mr Shand: That happened last year. Mr Macdonald: I could supply the Minister with the date.

Rising to a point of order, Mr Shand said the whole debate was out of order and not one of the things said had been relevant. The Speaker: I think the Minister should allow me to control the debate. I think I can settle it firmly and decisively. We don’t want absolute rigidity. I don’t think the House thinks that I am rigid or repressive. Mr N. E. Kirk (Opposition, Lyttelton) said the rent increase in the main cities was likely to be the maximum of 30s.

Mr Shand, who was in charge of the bill, said some of the cases concerning key money quoted by Opposition speaker had been drawn to the attention of the previous Labour Government, but it had done nothing about it. "Presumably it didn't consider it desirable,” he said. Mr Shand said Opposition members should have brought the cases to him to investigate before they raised them in the House. Mr M. Moohan (Opposition, Petone): You’d just put them in the wastepaper basket. Mr Shand: Some of these cases sound pretty terrible, but unless you know all the facts you don’t know whether a landlord is being reasonable or not. Replying to Mr Kirk’s statement that rent increases in the main cities were likely to be 30s, Mr Shand said he understood the average increase in Christchurch would be between 14s 3d and 14s 6d. “The rent increases under the bill are not automatic,” Mr Shand said. “They will only apply where the LandLord applies for an increase and proves that the higher rent is justified on the new basis.” He said shop rents would not be changed by the bill. The bill was passed by 41 votes to 29.