ALLEGED RACK-RENTING

Dominion, Volume 10, Issue 3192, 17 September 1917, Page 4

ALLEGED RACK-RENTING

AN OFFICIAL REPLY. Last week Mr. T. .M. Wilford fHutt) drew the attention of the Prime Minister in the House of representatives to a case of alleged rack-renting by the Labour Department at Petone. It was stated that tho tenant of a house -:wned by the Labour Department had been eiven notice to quit because he had refused to pay increased rent. Mr. Massey promised to make inquiries on the subject. The Prime Minister has since received the following official reply from 'he Labour Department:—"The original Workers' Dwellings Act, under which this house was let, states that the rent of a worker's dwelling shall be 5 per cent, of the capital value, plus rates and insurance. It was found that the rent should be increased by Is. per week to cover the increase in rates, but the tenant refused to pay the samo. This Increase made the rent I3s, Gd. per week, while the rental of a similar horns in Petone is about 17s. 6d. Another-worker (whoso landlord has givon him notice to leavo his present house) desired to purchase tho worker's dwelling in question under the present Act, by the payment of £10 deposit, tho balance in monthly instalments as rent. Before offering the dwelling to the 'atter worker on the purchase system, however, tho Department's tenant was first given a full opportunity to purchase it, but declined to do so. "The object of tho Act/' continues the official reply, "is to enable workers to acquire their own homes, and 'ho Department therefore gives preference to applicant to purchase. Moreover, a purchaser is a more satisfactory occupant than a tenant, as the Department's experience has shown that better care of tho dwelling is taken by purchasers than by tenants. It might be added that a monthly tenant has the right to leaVe his dwelling at any time on giving notice, but apparently it is considered that he should have the right to occupy the dwelling as a tenant as long as ho likes.