PROTECTING GROUND RENTS

Evening Star, Issue 21099, 11 May 1932, Page 2

PROTECTING GROUND RENTS

POSITION OF PUBLIC BODIES [From Ouh Paruausntaet Eefortje.J WELLINGTON, May 10. A new clause was added to the Finance Bill yesterday protecting ground rents from being reduced below 5 per cent, per annum on the unimproved value of the land, which is to be taken as that appearing in the district valuation roll in force on April 1, 1932. This gave rise to considerable discussion in the House to-night. It was contended by Mr M'Combs that the alteration wont in the direction of protecting landlords, and might possibly take all relief from those renting land. Mr Forbes: There are few outside of local bodies who will bo affected by the amendment. The Hon. Downie Stewart, citing a particular case, said the Auckland Harbour Board had written to the Government stating that, unless a minimum reduction was fixed in connection with the very low ground rents it charge it would be involved in £II.OOO, and would have to raise its harbour and wharf charges, as it had huge overseas Joans on which it had to pay interest. There were other bodies in similar positions. They had fixed low ground rentals to encourage building, and would be placed in a very unfair position unless the amendment were made. Mr Forbes made it clear that the clause would not apply to country lands. This mode of leasing was frequently adopted by local . bodies and public authorities, and there was no doubt that if the amendment had not been inserted a great deal of hardship would have been caused, not only to one or two harbour boards, but also to many other local bodies. Five per cent of the Government valuation was not an extravagant rental, and a very serious case for the amendment bad been made out. Mr Harris said it was not reasonable that the Auckland Harbour Board and the Wellington City Council should be placet! in a loss advantageous position than anyone else. There was no reason for holding the clause over.