CITY LEASES

Evening Post, Volume XC, Issue 88, 12 October 1915, Page 3

CITY LEASES

WELLINGTON'S INTEREST WATCHED LESSEES AND COUNCIL THE ARBITRATOR DIFFICULTY. The difficulty regarding the system of arbitrating on the value of the Wellington city leases,, which held up the work of Parliament on Friday night, was overcome by the Minister for In ternal Affairs yesterday. The Hon. G. W. Russell, in moving the second reading of the Counties Aqt Amendment Bill, in which the clause 1 was included-, said that it was proposed to amend His Excellency's message by which the provision was brought down on Friday night. The amendment would be that the clause appointing the third arbitrator a Magistrate would not operate until Ist January, 1917, Snd a clause would be added to the Washingup Bill providing that the renewal of leases falling due in the meantime should be held over until that date. In the meantime, there would be no valuation, and during the recess the Government would consider the desirability of bringing down amended legislation dealing with the whole question of the valuation of the reserves of local authorities with a view to placing them on a better footing. It was desirable that something in the nature of a. Court free from local bias should be established — though this was only his personal opinion. Under the amended clause the leases would remain as they weTe, but the new rent would be paid as from the date of the renewal, on the new scale as fixed in 1917. Some discussion followed the statement of the Minister on the point as to whether the new proposals could be debated. It was a matter of the Standing Orders.* The Prime Minister, however, secured the consent of the House to give full opportunity for discussion, but the debate was very brief. AMENDMENT AGREED TO. Mr. C. J. Parr expressed the opinion that the Minister had found a very reasonable way out of the difficulty. He personally did not think a Magistrate the most suitable umpire in such matters. Mr. Hindmarsh : Why? Mr. Parr replied that a Magistrate was frequently a young man who had not the commercial training or experience necessary in these mat-t-ers, which very often involved many thousands of pounds. At any rate, the lessees had a right to be heard before the Magistrate was appointed. After a brief debate, the Minister's amendment was agreed to. Mr. A. H. Hindmarsh said that by th« provision passed the other day a Stipendiary Magistrate was appointed to act practically as an umpire. It was proposed by this later legislation to repeal that clause Hon. G. W. Russell: It has been repealed. Mr. Hindmarsh said that if the necessary legislation is passed, it will mean the loss of thousands and thousands a year to Wellington. The Minister of Internal Affairs was wrong when he allowed the clause to be struck out. All the City Council bad now was a promise that legislation would be brought down — not passed. Mr. Russell : It's in the clause. Mr. Hindmarsh : That's all very well, but the Minister knows that if the clause is not passed we will be in the same position as before. Dr. A. K. Newman : "I think my colleague the member for Wellington South must have been reading Adam Smith, who says that Ministers are crafty people. I have not much faith in a National Cabinet, but I am satisfied with the promise of the Prime Minister that he will bring in a Bill next session." Mr. R. A. Wright expressed the wish that when the Bill was brought down next year that it would provide for the umpire to be a Judge of the Supreme Court, and both sides would then be satisfied. He supported the clause. Mr. C. E. Statham also supported the clause. Mr. H. G. Ell said the House was perfectly satisfied with the Court as set up by the Bill previously brought down, and the second Governor's Message was a-n attempt to get out of a very difficult position. A DIFFICULT PROBLEM. The Attorney-General (Hon. A. L. Herdman) said that the whole position regarding the settlement of these rentals required most careful consideration and should not be dealt with in the last hours of the session. The question should be thoroughly gone into. The position in the different centres was not the same, and the lessees had quite as much right to expect justice from the House as the poorest men in the land. The City Council, in considering the standard of rentals, should take into consideration the future development of the city and should not aim at extracting the very last farthing from the pockets of the business peoole of the community. Mr. J. Payne said that the Chief Magistrate should be the chief arbitrator in regard to these rentals. STATEMENT BY THE MINISTER. The Hon G. W. Russell criticised Mr. Hindmarsh for casting doubt on the bona fides of the intention of the Government. He hoped he would unreservedly withdraw the slur he had cast upon the Government. He defied him to put his finger on any past breach of faith by either the Massey or the Ward Government or any member of the Government in his official capacity A member : What about withdrawing the second ballot and putting something in its pkee? (Laughter.) Another member: Leave the past alone ! Mr. Russell continued that the legislation passed earlier by the House did not refer only to the City of Wellington but the whole country, and, consequently, the numbers of cases which would come before the Judges of the Supreme Court might be so great that the Attor-ney-General declined to make the pressure greater. The legislation that was being passed that night was at the re quest of the Mayor of Wellington, as representing the Corporation. The Minister assured the House that the question would be thoroughly gone into during the recess. Possibly a general scheme of local government might be brought down whereby it was possible to secure a system that would be acceptable; to the country. Concluding, Mr. Russell again asked Mr. Hindmarsh what justification he had for asserting that the Government might break faith with the public. Mr. Hindmarsh : I will be able to answer that question this day twelve> months. (Loud laughter.) The amendment was agreed to, and the Bill was put through its remaining stages and passed. The amendments proposed by Governor's Message regarding valuations of Corporation leases were agreed to in the Legislative Council last night.