Displaced Tenants May Be Compensated

Press, Volume CIX, Issue 31880, 7 January 1969, Page 20

Displaced Tenants May Be Compensated

(From Our Own Reporter) WELLINGTON, January 6. The Government has been examining overseas practices of paying compensation to tenants who are without rights at present when disturbed by the Ministry of Works under public works procedures.

The tenants involved are usually those occupying part of premises and whose leases have expired without right of renewal, who have no new lease, and who occupy space on a weekly tenancy. They are unprotected. Yet an adjoining tenant with a protected lease can have the State buy out his lease, compensate him for loss of. business, and pay the necessary removal expenses. Cases of hardship in the former category have increased, particularly as urban motorway work has expanded. The Minister of Works (Mr Allen) recently sought a review of law on that and other aspects of compensation entitlements. The review is to be made by executives and senior purchasing officers of the Ministry. Mr Allen believes that all tenants should be entitled to the best deal the State can offer, provided that remains compatible with the capacity of the Government as a trustee for the taxpayer. The Ministry has begun a formal review but its tentative conclusions are .that the existing compensation law, in

general, is not bettered in the English-speaking world.

Nevertheless, some liberalisation of present rules remains possible (the relevant report and recommendations will be ready for the Cabinet later this year).