CHARTER OR PURCHASE

Evening Star, Issue 23444, 8 December 1939, Page 3

CHARTER OR PURCHASE

N.Z. SHIPS FOR MINE-SWEEPING

POWER ACCORDED AUTHORITIES

[Per United Press Association.)

WELLINGTON, December 7. Authority for the Director of. Sea Transport compulsorily to purchase vessels if it is defeftied advisable is' l contained in amending regulations gazetted to-night, tinder the principal regulations power is given to the Director of Sea Transport to requisition and take up New Zealand registered ships on charter for anti-submarine, minesweeping, or examination service, and several vessels' have . been so requisitioned. '■

It has been found in. several cases that the rates of hire, especially in respect of older types of vessels, are such that a saving would result if the vessels were purchased by the Crown. In each case of proposed purchase the director is .required, as soon as possible after he has given the necessary notice of acquisition, to fix a price for the vessel based on its fair market value at the date of acquisition, together with any special value to the owner due to the use made by him of the vessel, but excluding any enhancement of value arising from war conditions and their effect on the market, and excluding also any consideration of special value due to the fact that the vessel is a component of a fleet or service If the, owner or any person having a registered interest or charge on the vessel does not agree with the price fixed, the regulations confer thd right to apply to a magistrate to fix the price to be paid. It is not expected that the regulations will be used to any extent.' A further amendment to the principal regulations extends the power of requisitioning to any such small vessels as launches which may be required for service and are not required by the Imperial Merchant Shipping Act, 1894, to be registered.