LEASES OF LOCAL BODIES.

Dominion, Volume 2, Issue 470, 31 March 1909, Page 3

LEASES OF LOCAL BODIES.

AMENDED LEGISLATION DESIRED. A meeting convened by Messrs. F. G.Bolton, A. D. Kennedy,' and J. P. Luke, M.P., was hold yesterday with tho object of endeavouring to secure legislation enabling trustees and others to advanco trust funds upon Glasgow or corporation leases, as they are empowered to do in the case of Crown leases. There was a good attendance, and Mr. F. G. Bolton occupied tho chair. Tho chairman pointed out that, in tho event of lessees desiring to encumber their properties, financial operations could bo more readily effected at a lower rate on tho same security if tho improvement was made, l'ho Mayor, several members of the City Council, most of the local M.P.'s, and the members of tho Harbour Board wero in favour-of tho proposal. He hoped that tho Auckland M.P.'s would assist in the matter, as a number of Auckland people were affected. Mr. J. P. Luko thought the Government should allow city leaseholders to have the same facilities as Crown leaseholders. Tho security of those leases was as good as giltedged. He did not wish to exploit tho country in regard to these leases, but tho security should be maintained. They would never secure the full benefit of the Lcas:ng Act unless they followed the suggestions of tho chairman. Mr. F. M. B. Fisher, M.P., remarked that tho Wellington members were in favour of tho proposal, and they could be relied Upon for every assistance. A bill should bo drafted, and perhaps-a deputation could bo arranged to wait upon tho Government. A committee should bo set up with this object. In reply to a question, the chairman said that he thought it only an oversight that tho Government had not previously dealt with tho matter. Mr. R. A. Wright, M.P., moved:—"That, in the opinion of this meeting, an amend(mont to the Trustee Act should be mado, to enable trustees to advance money on the security of Glasgow and similar leases of local bodies in this and other centres, and that a similar power should bo conferred upon the Public Trust Office and the Government Life Insurance Department, and that the power to lond to the extent of one-third in Section 97, Sub-section G of the Trusteo Act, be extended to three-fifths of the value of tho lessee's interest." Mr. D. M'Laren, M.P., put in a complaint about inflated values in leaseholds. He expressed himself entirely in favour of the general objects of the meeting. Mr. H. C. Tewsley said that they must guard against any movement likely to increase the ground rentals, somo of which were already as high as they could bo. Many of those who had to pay under tho revaluations considered them excessively high, and that they wero suffering from an inflation in values. At any rate, nothing should bo don© hastily. Tho chairman mentioned that ho knew of certain leasing transactions. which held firo owing to tho difficulty of finance. If a man put up a building at a cost of £6000, ho would think it absurd if ho could only obtain an advance of £2000 upon it. Such a building should be security for £3000 or £3600. One of thoso present remarked that, if tho desires of tho meeting wero given effect to, the building trade would be greatly helped. Mr. Fisher said that if the leasehold was made more marketable, the valuo must be increased. In his opinion, the inflation of values was not duo to tho facilities. for finance, but to the method of valuation. (Hear, hear.) Tho motion was withdrawn, and a subcommittee, consisting of Messrs. F. G. Bolton, A. D. Kennedy, J. P. Luke, H. C. Tewsley, and A.' H. Miles was set up to go thoroughly into the matter and report to a meeting in a month's timo.