RENT REDUCTIONS

Evening Star, Issue 21075, 12 April 1932, Page 8

RENT REDUCTIONS

ALL TENANCIES COVERED 20 PER CENT. CUT MANDATORY [From Our Parliamentary Reporter.] WELLINGTON, April 12. There has been a good deal of disputation since the introduction of the National Expenditure Adjustment Bill as to whether the rent reduction proposals affect weekly tenancies. It is definitely stated by the Prime Minister that the Bill provides for a reduction of all rents, whether payable under, written lease, or agreement for lease, or monthly, weekly, or other tenancy by word of mouth. “If a particular tenancy was in existence on January 1, 1930, Mr, Forbes states “ the 20 per cent, reduction is made from the rqnt payable as at that date. In -the case of a tenancy, which has commenced since January 1, 1930, the 20 per cent, reduction is made from the rate payable on March 31, 1932; but if the rent has been varied since the beginning of the tenancy the reduction is made from the original date.” Mr Forbes pointed out that provision' was made for an aggrieved landlord to appeal for relief on several grounds, and it then remained for the court to decide the fair rental value of the premises. There was the safeguard that the rent could not be reduced below 7 per cent, of the capital value, and previous concessions in the amount of rent had to be taken into consideration. Whatever subsequent relief might bo given to landlords on appeal to the court, they were definitely obliged to reduce their rents, no matter on what basis, after the passage of the Bill,