COUNCIL DILEMMA

New Zealand Herald, Volume 82, Issue 25203, 16 May 1945, Page 8

COUNCIL DILEMMA

EXTENSION TO FACTOBY COMPENSATION QUESTION ''Our solicitors, have advised that we are faced with a substantial claim for compensation, and I hope yon ladies and gentlemen realise the seriousness of the situation," stated Mr N. C. Sneddon at a meeting of the Mount Eden Borough Council last night, when an application from Neiv Zealand Wallboards, Ltd.. for a permit to extend its factory in Balmoral Road was again discussed. Present at the meeting were about 20 ratepayers living in the neighbourhood of the factory, who objected to the granting of the application, which had been declined by the council on a number of previous occasions. Through its solicitors, the company intimated that it was prepared to carry out one of two proposals if the council would immediately issue a permit. One proposal wag that it would at the end of 30 years hand over the factory site and buildings to the council for recreational purposes, provided the Commissioner of Taxes agreed to • allow the company to deduct from its taxation over a period of 30 years the cost of writing off the value of the property, together with the removal and re-erec-tion costs of the plant and machinery on a new site. The alternative suggestion was that the company should immediately pay to the council the sum of £SOOO and a! similar sum at the end of 20 years for the purpose of purchasing additional recreational areas in the borough, provided it was allowed to deduct it for taxation purposes. Application to Cpmmissioner "If either of these prosopals is acceptable to the council, the company would suggest that the council issue a permit forthwith and join with it in an application to the Commissioner of Taxes to secure the relative concession, it being understood that, in the event of refusal by the commissioner, this would not interfere with the right of the company to carry out its work, or to have the area continued as a light industrial zone," it was stated. "Should it not be possible for the parties to agree upon one or other of the proposals, or some satisfactory modification of them, within a reasonable time, the company would be at liberty to proceed to lodge it« claim for compensation and abide by the Court's award." Twenty Years Ago Speaking to the deputation, Mr Snedden said the council sympathised with them, but unfortunately 20 years ago it had granted permission for the original building, which did not conform to the regulations, to be erected in a residential area, and it was now trying to invoke the Town Planning Act to prevent additions. The council laid itself open to a claim for compensation under the Act and, even if it were limited to £20,000, it would be a serious matter for the people of Mount Eden. "In protecting one section of our ratepayers we are going to penalise th» rest of the borough," Mr Snedden continued. He moved that a special meeting of the council-in-committee be called within ten days to discuss the matter, and that a small deputation from the ratepayers objecting to the extensions to the factory be asked to attend. The motion was carried.