Greymouth Evening Star. AND BRUNNERTON ADVOCATE. TUESDAY, APRIL 12th., 1932. RENTS !

Greymouth Evening Star, 12 April 1932, Page 4

Greymouth Evening Star. AND BRUNNERTON ADVOCATE. TUESDAY, APRIL 12th., 1932. RENTS !

THE rent reduction of which the Dominion is most urgently in need, is the lessening of the fissures in Ministerial ranks.. Admittedly, an emphatic denial was given by Mr. Forbes yesterday, to rumours that the proposals of the National Expenditure Adjustment Bill had created dissension in the ranks of the. Coalition, and difference of opinion in the Ministry. “No such rumours have yet reached this office,” said the Prime Minister, with a smile. ‘‘ As for the suggestion about the Ministry, I can say that there is no question as to the unanimity of the members of Cabinet.”

Mr. Forbes’ words were ambiguous, and may mean anything. It is no laughing matter for the country to have a divided Ministry at the head of affairs in this hour of national crisis. That the Cabinet is a happy family few will credit. Ignoring stories of actual fisticuffs, and of other disquieting developments, what confidence can be maintained in a Ministry if on the intentions of important legislation, the leaders express different opinions ? On Saturday, in connection with the proposed enforced reduction of rentals, the Minister of Finance (Mr. Downie Stewart) declared that in regard to weekly tenancies, the new legislation could not be effective. Yesterday, the Premier (Mr. Forbes) said that his colleague was wrong, and that all classes o£ tenancies are to be subjected to the reduction. If the Cabinet Members are not agreed as to the scope of their own proposals, the average layman may well be excused for not knowing where he will stand as tenant, or landlord, and for being disappointed with those in whom he has put his administrative trust:

Appearances suggest that the amount of actual reductions in rentals and interest will prove to be small, as comparatively few eases will come within the limits fixed by the new bill. For instance, it is laid down that no rent is to be so reduced to a total after deduction of rebates and rates, insurances, cost of maintenance and repairs, of less than 5 per cent, of the capital value of farm lands, or 7 per cent, in other cases. How many landlords, to-day., are getting a clear five or seven per cent, return on their investments in farm

or town properties Comparative-1 ly few, and those who are, own, for the most part, properties which were wisely bought, and which special circumstances make valuable to the tenants and lessees, as well as the owner. Similarly with interest. Owners of properties with State Advances mortgages will get little or no benefit from the new bill, and the whole effect of enforced reductions of interest under whatever name it is called, may be of an adverse character to the country’s finances. However, that risk must be run. The Government is trying to do something to equalise the burden, and *no scheme could be evolved without arousing criticism. The Ministry, thus open to easy verbal attack, should not add to its enemies’ strength, by displaying lack of cohesion in its own inner circles.