CITY LEASES

Evening Post, Volume XC, Issue 85, 8 October 1915, Page 8

CITY LEASES

THE THIRD ARBITRATOR DEPUTATION OF PROTEST A deputation of Corporation leaseholders waited upon the Hon. Sir Francis Bell to-day, protesting against the insertion of a clause in the Municipal Corporations Amendment Bill without the city leaseholders having first been heard. The clause referred to provides for the senior Stipendiary Magistrate acting as third arbitrator in cases where the lessee and the Corporation cannot agree upon the third arbitrator for, the purpose of making a valuation of a property leased by the Corporation. The Bill had already been read a third time, and passed, before the members of the deputation were made aware of the significance of the clause. Having outlined - their objections* through Mr. M. Myers, Mr. L. O. H. Tripp, and Mr. Shirtcliffe, the deputation was referred to Hon. G. W. Russell, as Minister for Internal Affairs. However, while Mr. Tripp was addressing Sir Francis Bell he said the corporation had gone behind the leaseholders' backs in connection with the insertion of the clause objected to, giving them no opportunity of putting the leaseholders' case fairly before the Government. Mr. Shirtcliffe took it that an amendment of the Act had been made by one party without the m other party's knowledge. Who was instrumental in having that clause inserted ? Sir Francis 1 Bell: I don't know — probably ft was the City Solicitor. 'A SURPRISE. After a preliminary talk over the matter with Sir Francis "Bell, the deputation was enabled to put its views before Mr. Russell. Mr. Myers explained that those present were' all corporation leaseholders, or representative leaseholders, who were astonished to learn for the first time, and through the newspapers, that the clause, in question had ,been inserted in the Bill, no doubt at the request of the local body. It was now practically law. This, he submitted, was not just to the leaseholders. In their leases provision was made for a periodical revaluation every fourteen years, and the tribunal consisted of two valuators, and if these were unable to agree as to the values, then a third was appointed by a Judge of the Supreme Court. But under the clause objected to, if the valuators were unable to agree, then provision was made for the appointment of a third arbitrator such arbitrator being a Stipendiary Magistrate. Mr. Myers raised tihe objection, first, that this change had been made 'by one party to the city leases without the other party being informed ; and next, ' that a Stipendiary Magistrate was not tne proper person to preside over a tribunal of the kind referred to. In' every event it was the third arbitrator who had to decide the matter, because sometimes the other arbitrators were unable to 'agree. Mr. Myers referred to the report of the Royal Commission set up to deal with various matters relating to th© constitution of the. Assessment Courts, which report was against the appointment of Stipendiary Magistrates as presidents of such Assessment Courts. They wanted the experience requisite to the determination of matters with which business men were in the nature of things better > able to deal. SUGGESTED POSTPONEMENT. The deputation resented this important alteration Being made in the Act in the dying hours of the session by one party without advising the leaseholders — the other party. It was now asked that in some such way_ as the forms of the House would 'permit the operation of the objectionable section should be delayed until, at all events, well into next session, so that leaseholders might have an opportunity to present their views to Parliament in the direction of having it struck out. Mr. Myers wished to make it quite clear to the Minister' that he did not think the Government had put the thing through. It was the City Corporation that had been at work. Mr. Tripp said the clause had been slipped through without the -leaseholders' knowledge. If it could not now be struck out, it could, he suggested, be suspended, as Mr. Myers had suggested. OVERWORKED JUDGES. In reply, the Minister said he could not accept the contention that the method of arbitration was included in the leases. Therefore, there could have been no breach . of faith. With regard to the provision for the appointment' of a Stipendiary Magistrate as third arbitrator, he wished that it should be a Judge of the Supreme Court. But Mr. Herdman declined to allow that, as the Judges were already overworked. Consequently, senior Stipendiary Magistrates were selected^ as Presidents of the Assessment Court ; and, from his own knowledge, they were . called upon to conduct a very large number of arbitration cases already. Possibly the Government might have to\ appoint another Judge. Mr. Russell also observed that as Minister for Internal Affairs the interests of local bodies were largely in his keeping. He v was well aware that the Wellington Corporation derived a large portion of its revenue from leases, and it was his duty where he could to secure for that body every £1 of revenue that came from reclaimed land. There had been cases where the leasing value . of land had been awarded by a Compensation Court at a very large sum below the Government valuation, "which itself, as they all knew, was much , below the actual market value. In selecting a business man as a third arbitrator they were bound to select a man who in" the nature of things would have the bias of a'business man against the Government or against the corporation. He considered some change was absolutely necessary. There was no attempt made to steal a march with the clause. The city had representatives in Parliament, and they had had an opportunity of discussing the clause when it came before the House of Representatives. The Minister agreed to use his influence with Cabinet in the direction of suspending the operation of the clause until Ist January, 1917, and in the meanwhile no objection would be raised to the nomination of a •business man as third arbitrator, to be submitted to the judge for appointment, providing he came from outside" of Wellington, in the event of the other valuers not agreeing as to the appointment^ of the third being a Wellington man. To this the deputation readily agreed.