ORIGIN OF CLAUSE

New Zealand Herald, Volume LXXIII, Issue 22545, 9 October 1936, Page 13

ORIGIN OF CLAUSE

MR. SEMPLE'S CLAIM ADVICE OF DEPARTMENT FORMER MINISTER'S ACTION [BY TELEGRAPH —SPECIAL REPORTER] Wlif/LI NOTON, Thursday A statement that, the clause in the Finance Bill dealing; with Hie assessment of compensation for land taken under the Public Works Act had been drafted before the present Government came into office was made by the Minister of Public Works, the Hon. R. Semple, during the debate on the bill in the House to-night. Mr. Semple said that, acting 011 the advice of the heads of the department, the former Minister of Public Works, the Hon. J. Bitchener, had authorised the Crown Law Office to dratt the clause for inclusion in a Public Works Amendment Bill which was not proceeded with. For 4(3 years, said the Minister, the value of land taken under the Public Works Act was assessed by the Assessment Court at its existing market value. This ruling was recently tested in a higher Court, which field that the value of land should not be assessed upon its then market value, but on the value after the improvements had been carried out. That was a fictitious and false basis of assessment, the new proposal was in line with the English law. One of the judges had said that tlie law should be amended and that an individual owner was not entitled to receive the improved value that had been created by national enterprise. Mr. W. J. Poison (Opposition— Stratford): That was the opinion of a minority of tho Court.

Tho Minister of Finance, the Hon. W. Nash: The judges were equally divided.

Mr. Semple said that after the Court had given its ruling the heads of the department had warned the then Government to take action, either by appealing to the Privy Council against the Court's decision, or by amending the law with a view to preventing such an imposition on the nation. The then Minister of Public Works, the Hon. J. Bitchener, had recommended that the latter course be adopted and had instructed the Crown Law Office to prepare the necessary clause for insertion in a Public Works Amendment Bill.

"The clause that the Opposition is opposing and attempting to oppose in a very feeble way was written by themselves," declared Mr. Semple. Tho Rt. Hon. J. G. Coates (Opposition —Kaipara): Nonsense. Mr. Semple: I have here a copy of the honourable gentleman's bill drafted by his Government. Mr. Coates: No. Mr. Semple: Well, it was drafted by the Public Works Department.

CHANGE DEFENDED

BASED ON ENGLISH LAW REPLY TO OPPOSITION [nr TELEGRAPH—SPECIAL REPORTER] WELLINGTON, Thursday The action of the Government in inserting a clause in the Finance Bill altering the assessment of compensation for land taken under the Public Works Act was defended by the Minister of Finance when replying to the second reading debate on tho bill in the House to-night. Mr. Nash said tho suggestion of the Opposition had been that the Government should pay not only the market value of tho property, but also the added value resulting from the expenditure of public money. "There is not a shadow of equity, justice or common sense in such an argument," he continued. "The proposal in the bill is based on tho English law, which has operated for years.

"Indeed, the clause is even more generous than the English Act. It not only fixes the value of a property at the price at which it would be sold by a willing seller, but allows compensation for disturbance of possession. Nothing could be more fair. The old system has needed changing for years."