EXEMPTION REMOVED

Poverty Bay Herald, Volume LIX, Issue 17953, 3 December 1932, Page 4

EXEMPTION REMOVED

REDUCTION OF RENTS LOCAL BODY PROPERTIES UPPER HOUSE DISCUSSION. (Per Press Association.) WELLINGTON, lust night. Tho National, Expenditure Adjustment Amendment Bill was reported back in the Legislative Council yesterday from the Statutes Revision Committee, with an amendment designed to retain the partial exemption enjoyed by lessors of ground rents from tli© 20 per cent, reduction. In moving the second reading, Sir James Parr said the view of the Government way that all sections of the community should share in the common sacrifice, and the hill cleared up anomalies which had existed in the original Act. Loans on life insurance policies were to be treated as ordinary mortgages, and the interest charged was to he made subject to 20 per cent, reduction. It was also proposed that ground rents which could not at present tie reduced below 5 per cent., should he brought into line with other leaser. The Hon. R. Masters said the legislation was intended to bring about-equality of sacrifice. Up to the present, the- sacrifice had' not applied to local bodies and the Crown, and it war only right they should he brought into line. The Crown had done its duty by writing off £300,000 in arrears, of rent, and the total arrears outstanding amounted to £1,500,000. Sir Francis Bell said the Crown had not allowed its rents to he reduced below 5 per cent, of the capital value. INTERFERENCE WITH CONTRACTS.

The Hon. J. A. Hunan said that local bodies depended on ground rents for a largo part of their revenue, and if ground rents were reduced they would either have to reduce their services or increase their rates. He was fearful of the consequences of legislation interfering with contractu, as it had a tendency to create an impression that contracts were not binding. It had been pointed out to the Statutes Revision Committee that if-ground rents were reduced, many local bodies would be in a desperate state, and might have to approach the Government for aid.

Colonel G. J. Smith said the committee had heard considerable evidence, the balance of which had been in favor of reductions in ground rents. Tho bill was read a second time. During the discussion in the committee stage on the clause relating to ground rents, Sir Franciu Bell said the ground rent was only a small part of the amount involved in the letting or leasing of pioperty. “I have no doubt as a public man,” he said, “that I ought to vote for the protection of public endowments, irrespective of what Parliament wants to do.” The Hon. R. Master. I ,’ said that local bodies derived huge sums in ground rentals because private individuals had by erecting big buildings increased the ground rental of the land. The Government had reduced rentals con|s'iderably, and the deficits had been caused hy these reductions. There, was no doubt that the Government was meeting the position, and local bodies

should he made to meet tenants in a similar manner.

The amendment by the Statutes' Revision Committee was rejected by 10 votes to seven, and the bill was read a. third time and passed without amendment.