PASSMORE PROPERTY

Otago Daily Times, Issue 23689, 22 December 1938, Page 12

PASSMORE PROPERTY

PURCHASE BY INSTALMENTS MINISTER'S ASSENT GIVEN ANOTHER STAGE REACHED Assent has now been given by the Minister of Internal Affairs (Mr W. E. Parry) to the decision of the City Council which was put out of office last May to purchase the Passmore property, situated on the slopes of Flagstaff, by instalments for £6500. Although the question whether the property should be purchased by instalments and the rates of interest to be paid on the amount for the time being outstanding were* strictly speaking, the only points on which the Minister was required to give his decision, the general opinion in Dunedin during the past few months has been that, by that power, the Minister has been in a position either to confirm or to disapprove of the purchase itself. When Cr D. G. McMillan, M.P., at the meeting held more than a fortnight ago, endeavoured to force the hand of the council, it decided that further discussion of the proposal should be adjourned for a year, and there the matter apparently now rests, despite the Minister's decision. Letter to Cr McMillan In a letter received yesterday by Cr McMillan the Minister writes as follows: "As the matter of the Passmore property has been under consideration for some time past, I have now, in accordance with a request from the Dunedin City Council of September 13 last, decided to finalise those aspects which come within my jurisdiction. It is quite clear that the law does not vest me with any powers to determine the desirability or otherwise of the Passmore Estate being acquired by the City Council for recreation and other purposes; that function rests solely with the City Council. I am concerned only with two incidental phases of the transaction—namely, whether the council should be authorised to pay the purchase money by instalments; and. if so, the rate of interest to be payable on the balance for the time being outstanding. These are the enly phases of the matter that I can consider in pursuance of section 170 of the Municipal Corporations Act, 1933, under which the council makes its application. "Dealing with these two phases of the matter, the inquiries made indicate that it is quite reasonable for the council to pay the purchase money by instalments. To do so is not causing any undue strain on the council's finance, nor is it imposing any undue burden on the ratepayers of subsequent years. In addition, the rate of interest proposed—namely, H per cent. —is in accordance with ruling practice and is therefore reasonable. . Decision Given "Having regard to all the above factors," the Minister added, " I have •now given my decision, and have decided that the consent asked for by the City Council should be granted. A letter under my hand, formally giving these consents, has been sent to the town clerk. Dunedin. I would add that on account of the somewhat unusual features attached to this case it has received a great deal of prominence. I have purposely refrained, however, from entering into those aspects of the matter which particularly concern the local aspect, and should therefore be decided by the City Council itself. I have, in reaching the above decision, confined my attention solely to the two phases of the subject,' jurisdiction of which is conferred on me by law, and which must be decided as a consequence of the council's original application to me.". The Mayor's Comment "In his letter to Cr McMillan, said the Mayor (Mr A. H. Allen) when commenting on the matter yesterday, " the Minister makes no reference to the fact that he received a petition from 2200 of our citizens who protested against the purchase of the property. This protest undoubtedly expresses the opinion of a very much larger number of our citizens. The majority of the members of the present council definitely feel that the purchase v/as an unwise one. The question of the purchase was a live issue at the recent municipal elections, and the citizens then returned nine councillors and a Mayor who held definite views that the purchase was undesirable. "At a meeting of the council a fortnight ago, when Cr McMillan tried to force the hand of the council," the Mayor added, " a resolution was carried that further consideration should be deferred for 12 months, and there the matter now rests. From my point of view the matter is dead, notwithstanding the pch'ice received from the Minister.