GROUND RENTALS

Evening Post, Volume CXIV, Issue 103, 28 October 1932, Page 9

GROUND RENTALS

LOCAL BODY LEASES

LEGISLATION COMING

Legislation will bo introduced to Parliament this session removing tho partial exemption which local body leases have «njoyed from tho rent-re-ducing provisions of the National Exipenditure Adjustment Act.

Under Section 37 of the Act no ground rc.nt is to be reduced below 5 per cent, per annum of the unimproved value as shown by the district valuation roll as as Ist April last, but according to a statement made in the House this morning by the Prime Minister (the Right Hon. G. AY. Forbes) hardship has been caused lessees as a result of the operation of the exemption, and amending legislation is to be promoted to enable evidence to bo hoard from both sides.

Although Mr. Forbes did not disclose the precise nature of the: amendment,, it is understood that the proposal is to repeal the section. His statement was made in reply to an urgent question by Mr. F. Jones (Labour, Dunedin South), who, seeking an assurance that the section would not be repealed, .declared that removal of the exemption would bring particular hardship to local bodies in Otago, in that the valuations of Port Chalmers and Dunedin were made respectively in 1907 and 1920.

The. Prime Minister replied that the question had been raised by' a number of members who had received communications from the local bodies in their constituencies, and in addition the Government had received a good many protests and representations from lessees. "It is'the intention of the Government thia session- to furnish an opportunity of having the matter cleared up," added Mr. Forbes.- "It-is proposed to introduce an amendment to the Act and refer the Bill to a Select Committee to enable evidence- to bo heard both for and against the proposed alteration of the law. When the clause was inserted in the Bill originally it was incorporated on the representations of some of the. local bodies likely to be affected by the provisions of the legislation. They made out quite a strong case in that connection, but since the passage of the legislation a number of representations have been received from the other side, the lessees, who claim that hardship has resulted for them. The amending Bill will give an opportunity for both sides to state their case in full." ■ ,