THE CORPORATION LEASES.

Evening Post, Volume LXVIII, Issue 79, 30 September 1904, Page 2

THE CORPORATION LEASES.

CRITICISM OP TWE CITY COSNGIL'S METHODS. DEBATE IN THE LEGISLATIVE COUNCIL ADJOURNED. In Ilia LegislatiTo Council yoaterday tho adjourned dobnte on the Wellington City Loaning Bill was advanced another hI ;igo. Tho Hon. T. K. Mncdonald considered that Ihoro wore many nneatwfactory features in connection -with tho Bill, and compliiinod of the'faob that the plane had not been deposited. MemboM would not have accepted the absence of these plans if all tho facts in connection with th© Bill wero known. Some plans which had been produced had been very defective, and this wtia a proof of tho impossibility that members could know what had been done, Ho had every wish to sco a thoroughly satisfactory Bill pose, whioh would do justice to everybody concerned. Tho present Bill Mould not accomplish that purpose. The original lessees httd taken up blocks of lnnd at a nominal rentfll without building restrictions, but with a provision for an increase of 50 per cont. in tho rent after 21 years. Tho land with building was to be vested in tho Corporation after 42 yoara. Tho bait which had been held out to tho city was that a good- time was coming when the leases fell in, and it was at&t«d that tho rentals would then relieve the citizens' of a great portion of tho rates which they wore paying. The speaker went on to recount tho past history of corporation leases, and contended that tho Bill did not take tho interests of tho people into account, being designed oolely in the interest of (ho lessees. Ho then dealt with sevoral individual caeca, to show tho femall route whioh tho Corporation was receiving from valuablo properties. He specially instanced the case of the Public Hall Company, which was' formed 30, years ago to erect a thcati'o. The Corporation granted the company several sections at a very low rental for 42 years. On that property a theatre and tho Club Hotel had been built, while portions of the land had been sub-let. The hotel paid to-day a rental of £1250 por annum, and tho proposed rental of the property was £164 10s, so that tho Corporation would lose nearly £1000 per annum. He could quote- many instances of similar losses which the Corporation would suffer if the Bill wero passed. Tho Corporation and tho lessees had ' united in looking at the question from a wrong point of view. They had estimated tho value of tho buildings on a basis of tho present rent instead of at a figure batted on tho value of tho buildings as a rentproducing factor. It was absurd to say, us had been said by tho promoters of tho Bill, that the wooden buildings on tho sections would be uftelcxs in ten years. Many of them would lost 50 years ; but it suited tho Corporation purpose to cry out that they would not last. It was unjust that the citizens of Wellington should bo deprived of the enjoyment of what rbey had made such a sacrifice for. ihe unimproved value of the landff affected had boen put down at £168,300, and tho rental that the Corporation wh receiving was £1636 yearly, or. less than One per cent, on tho capital value. It might be asked, why had tho Wellington City Council proposed suoh a Bill! Ec replied that it was because the Council had boen in tho habit of proposing measures of this kind for many years past. It appeared to | bo aflliotcd trith ft kind of mental obliquity, whioh made it forget that it should nob, subordinate tho interests of the people to those of a few. The Bill had never boen asked for at all by tho citizens, •'aiid-- > "th 6 Council should have remembered that the city had borne a hugo burden' for many years, and had not got one per cenU return The time, he urged, had come when tho cit-i--r.om should get some return. The Bill should bo altered so as (o include tho whole of tho leases. Tho original lessees were not required to submit to an auction on tho eJcpirotion .of their leojeo, but" those who had come in in 1885 and hud erected flno .buildings had to submit to auction, and' had to buy back the goodwill created by their own energy. Tho Bill should, bo sent baak to the City Council {«r< redrafting, as it was evidence of thenegloct, slothfulness, and want of attention to detail which had characterised much of lihe work of the Corporation und had made it a scorn and a byword amongst other municipalities. Ho did not blame the Mayor or the City Council for tho Bill, b*ut he blamed thorn foe not employing the best legal talent obiainablo r Tho rights of the citizens had beon ignored, and it was time to give them their duo. The Hon.. G. UTMti deprecated tho abuse of the Corporation indulged In by the last speaker. With respect to the various Bills that went to make up the history of tho Corporation leases, Mr. Miicdonald- had always opposed them, and his predictions had never been fulfilled. About twolvo fasces had agreed to surrender their leases under tho Bill. The only dissension in the Cpuncil had como from Councillor Izard. The purport of tho Bill was woll known, and had beeu made public, and the Bill Itself, had met with no opposition in the other chamber. Mr. Macdonald had neglected to t«ll the Council that there would be * re-valuation at the end of ten years, and a re-apportioning of rents. The Corporation wo* making what it considered would bo a gooa bargain for the city, and what would result in old wooden shanties being replaced by substantial modem structures. Tho Hon. J. Jenkinson said tint, after reading the evidence, aud taking account of the fact that a, new clauso was proposed to bo added, ho won of the opinion that tho Bill required a good deal of consideration. He suggested that it should stand over until next session. It woud.be unwise to allow a schedule and a now altering clause to bo added to a measure that had passed tho Lower House. There would bo no hardship inflicted on the lessors by holding over tho Bill. The same view was hold by the Hon. F. Trask, who was afraid that tho Wellington Corporation did not give the problem sufflclbnt consideration, and oxpocted mcnibci'B of tho Council to put things straight' for it. Tho management of tho Wellington Corporation was also criticised- by the Hon. 0. Jones, who added that with respect to tho present Bill ho had discovered a general ignorance of tho subject. He advocated that the Corporation should allow the jpromnt contract with the lessees to expire, and then fuce the situation in an honest and biiNinoss-liko man nor. At tho same time ho was averse to the idea of disposing of tho looses (on expiration) by auction, as that would result in tho wrong pnrty receiving the voHie of the goodwill. The Bill wan supported by tho Hon. J. Marshall, who thought that if dealt with on' its merits it should go through. If, of course, tho member in charge wanted to withdraw— — Tho Hon. F. 11. Vntacr intimated his intention to stick to tbo Bill. The -Hoti. J. Marshall contended that tho city would material!} benefit by having hew buildings on the lands in qiHtotiou. The Hon. J. Rigg observed that when a local body liad oobocly to defend it, one could ivlways find a number of people ready to attack it. Although mistakes liad hivppened, as could only be expected "» rarrjin£ out comprehensive woiks.

the b»lanoe of wodit lay with tho Wellington 0% Council. The Bill did no*, bhid any l*s*iee to smrrendor Kis lenso, and if there wore uny wrong possible under the Bill, there was plenty of timo for the citizens to tako stops to prevent that wrong. It was not fair to take tho original value of the land and compare it with it« present vuhie and «iy that the Corporation was losing tbo difference all the timo. Tho wholo question was whether tho Corporation, by the increased revenue which it would receive, would obtain a fair equivalent for ,tho buildings which it would givo up. Mote important, howevor, than the legal aspect or tho pecuniary advantages, was lite wetfaro of tha city, and it would be far tho welfare of the city to have tho 'old buildings replaced by large modej}i structures. JIo naked that instead of rejecting the Bill, tho Council alMiuld give members an opportunity of making further enquiries. At this stago tho Hon. W. Cnrncross moved the adjournment of Ihe debate, winch was agreed to.