RENT REGULATIONS

Northern Advocate, 29 October 1932, Page 11

RENT REGULATIONS

LOCAL BODY LEASES,

EXEMPTION MAY BE EEPEALED,

(From Our Parliamentary Special.) / WELLINGTON, Friday. Legislation will be introduced this session to remove the partial exemption that local body leases have enjoyed from the rent provisions of the National Expenditure Adjustment Act.

Under section 37 of the Act no ground rent is to he reduced below 5 per cent per annum of the unimproved value, as shown by the district valuation roll at April 1 last, but according to a statement made in the House this morning by the Prime Minister hardship has been caused lessees as the result of the operation of the exemption, and amending legislation is to be .promoted to enable evidence to be heard from both sides affected. Although Mr Forbes did not disclose the precise nature of the amendment, it is understood the proposal is to re peal .the section. His statement was made in reply to an urgent question by Mr P. Jones (Labour, Dunedin South), who was seeking an assurance that the section would not be repealed. He declared that the removal of the exemption would bring particular hardship to local bodies in Otago, in that the valuations of Port Chalmers and Dunedin were made respectively in 1907 and 1920. The Prime Minister replied that the question had been raised by a number of members who had received communications from local bodies in their constituencies, and in addition the Government had received a good many protests and representations from lessees. “It is the intention of the Government this session to furnish ah opportunity of having the matter cleared up, 3 * added Mr Forbes. “It is proposed to introduce an amendment to the act and to refer the bill to a select committee to enable evidence to he heard both for and against the proposed alteration of the law. When the clause was inserted in the bill originally it was, incorporated on the representations of some of the local bodies likely to be affected by the provisions of the legislation. They made out quite a strong case in that connection, but since the passage of the legislation a number of representations have been received from the other side—lessees who claim hardship has resulted for them. The amending bill will give an opportunity for both sides to state their case in full.'’