FAIR RENTS ACT EXTENSION OPPOSED.

Horowhenua Chronicle, 11 April 1939, Page 7

FAIR RENTS ACT EXTENSION OPPOSED.

BUSINESS OWNERS’ PETITION. Signatures are being obtained from all parts of New Zealand to a petition to be presented to Parliament, when it assembles, praying that the Legislature will reject any proposal to bring business premises within the scope of the Fair Rents Act or any similar legislation (says the ‘Post’). Last session of Parliament tenant-occupiers of business premises petitioned Parliament praying that all business premises be placed within the protection of the Fair Rents Act, 1936. The petition for which signatures are now being sought has been organised by the Dominion Property Owners’ Organisation, of whichh Mr. E. Bull (Auckland) is the organiser. So far, 1,000 signatures have been obtained.

“Faced by the unpalatable fact that any expansion of the Fair Rents Act, 1936, to business premises, would be unjustifiable and indefensible, business property owners and the greater bulk of business tenants deprecate the attack now being made upon the security of business premises by irresponsible outsiders, ’ ’ said Mr Bull in a statement. ‘‘ An attempt to bring all forms of property, including business premises under the provisions of the Fair Rents Act, 1936, was made by a certain group of business tenant-occupiers during the latter stages of the last Parliamentary session. The time at which the petition was received made it impossible for anything to be done then, but assurances were given to the petitioners that the matter would receive attention at the next session. Definite action has already been taken by property owners to counter the move by these tenants, and a largely-signed petition is to be presented to Parliament asking that all business property owners shall be permitted to manage their own properties without legislative restriction. “During the depression,’ he added, “many landlords of business property as well as dwelling house owners greatly reduced rents. Landlords also had their real rentals further reduced by the fixing of the foreign exchange rate, and rents under leases were also reduced by the National Expenditure Adjustment Act by 20 per cent., which reduction has now been made permanent. Landlords suffered very severely during this period, and to deprive them further of a fair market value of rent in better times would amount to partial confiscation of legal rights and freedom personally to determine the earning power of their own property investment. The application of the Fair Rents Act would also have a very serious reaction upon local body rates.’’ Residential Flats. Residential flat owners) were entitled to an equitable return upon their investments, he said. Facts proved that in the majority of cases the erection of residential flats in restricted areas in cities was more costly than the building of houses in suburban areas. Regarding the leasing of property, it was stipulated that there could be no contracting out of the Act, and unless it was altered leases as now known would have no legal or material value if it were made to apply to busi- ; ness property. There was no appeal from a decision given under the Fair Rents Act, and thus a retailer or office or warehouse tenant wanting a lease with the object of making alterations would have no security of tenure, and the tenant would thus be deprived of the potential establishment of his business. Investors were not willing to lend capital for dwelling house investments, and until the position regarding the expansion of the Act to business property was clearly defined no form of business property would be attractive to lenders.