Power men’s rents to be reduced

Press, 15 October 1976, Page 3

Power men’s rents to be reduced

PA Wellington] The commission of inquiry into Electricity Department house rents has recommended that present rents for houses in both urban] and rural areas be reduced. I The commission, in its report released yesterday by the Minister of State Services (Mr Gordon) recommended that the rents of 513.95 a week for houses in urban areas and $7.45 a week in rural areas be reduced by 53.70 and $1.45 a week respectively.

There was one dissenting] opinion, that of Mr Rodda, who said he disagreed with the conclusions reached by the majority because in his view they were not based on the evidence, but had been arrived at after an arbitrary rejection of the opinions expressed by witnesses called by the State Services Commission.

This would make urban rents $10.25 a week and rural rents $6 a week. The Public Service Association had sought to hold rents at 1974 levels of $7.45 and $3.95 a week for houses in urban and rural areas. Under the terms of the agreement reached on June 3, 1976, the Government and the P.S.A. had undertaken to abide by the findings of the commission of inquiry. Members of the commission were Mr N. R. Taylor (chairman), Mr A. C. Rodda and Mr J. T. Ferguson. It was asked to inquire into and report upon:

“The grounds for this rejection were that these witnesses did not have before them the whole range of evidence presented to the inquiry and it was the task of the commission itself to form opinions in the light of all the facts. “But paradoxically the commission is prepared to infer that the 1975 Government apparently considered there were special circumstances applying to N.Z.E.D. employees — and to attach weight to that opinion. “I cannot concur in such inconsistency of approach.” In its report the commission said the reductions recommended had regard to a number of factors. In urban areas it has been recommended the average rent should be reduced to offset the effect of a number of new houses in New Ply-

“Whether the amount and effective date of the rent increases being paid by the Electricity Department employees should be adjusted after considering the circumstances of the Electricity Department employees in comparison with other State employees in departmental houses who are also charged rents under the standard departmental formula, and after consid-; ering any other relevant] matters.”

mouth coming into the valuation pool at one time and the increase in house values (and therefore in rents) caused by the better structural standard of N.Z.E.D. houses. The report also recommended a further reduction

A majority of the commission came to the conclusion that there were grounds for adjusting the amount and ef-[ fective date of the rent in-] creases of the N.Z.E.D.

of $1.25 a week with regard to the length of tenancy and consequent inability, as compared with all other State] servants who are in rental

emplovees when compared;houses, to acquire an equity with other State employees! in their own houses. This in departmental houses who] will reduce the urban rent to were also charged rents|slo.2s a week. under the standard depart-] The present average rent mental formula. lof $7.45 a week for N.Z.E.D.

employees in rurai houses is not affected by the New Plymouth valuations but the commission concluded that the other two items of deduction for better housing and the special circumstances did apply. There is therefore a deduction of $1.45 a week in the rural housing area which will reduce the rural rent to $6 a

week. It is recommended that the new rents start from April 1, 1976, with the rent existing from April 1, 1975, applving up until that date. However, the commission has recommended that once an appropriate scheme providing for the equity purchase of homes for these employees, or for all State employees is introduced, the special deduction of $1.25 a week should cease. Mr Gordon said in an accompanying statement that he had asked the S.S.C. to take action now to reduce the rents. The June 3, 1976, agreement reached between the Government and the P.S.A. provided that the government would negotiate on home ownership schemes with the employee organisa-

tions. The recommendations of the commission of inquiry “must be seen as the ultimate vindication for the stand taken by the N.Z.E.D. staff,” Mr J. F. Turner, president of the Public Service Association, said yesterday.

The commission’s recommendations meant that the Government must refund over $60,000 in excess rent to the power workers.