PURCHASE OF SHIPS

Greymouth Evening Star, 8 December 1939, Page 8

PURCHASE OF SHIPS

COMPULSORY POWERS GIVEN. [PER PRESS ASSOCIATION.] WELLINGTON, December 7. Authority for the Director of Sea Transport compulsorily to purchase vessels if it is deemed advisable, is contained in amending regulations gazetted to-night. Under 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, oi’ 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 type vessels, are such that a saving would result if the vessels were purchased by the Crown. In each case of a 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 a fair market value at the date of acquisition, together with any special value, to the owner due to 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 dr charge on the vessel does not agree with the price fixed, the regulations confer the 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 if 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.