Business Circles Concerned Over Value Of Goodwill

Wanganui Chronicle, 31 May 1949, Page 6

Business Circles Concerned Over Value Of Goodwill

WELLINGTON, Last Night (P.A.) A deputation from the New Zealand Business Protection Association headed by its president (Mr. N. G. Foley) waited recently upon the Minister of Labour (Mr. McLagan) to discuss the operations of section 19 of the Tenancy Act, 1948, which deals with the valuation of goodwill. A supplied report states it was submitted that insofar as the legislation was retrospective, it was bad legislation. When the Control of Prices and Profit Margins in 1939 was effected, 1939 margins were adopted. When property values were stabilised in 1942 such prices were stabilised at those ruling at the time of the legislation. However, instead of goodwill valuation being stabilised at the date of the introduction of the Tenancy Act. in 1948, the net effect was to reduce goodwill to pre-war valuations. If it were Parliament’s intention to stabilise goodwill at. ruling valuations, then it appeared from such valuations that had been made to date that the intentions of Parliament were not being carried out. The Minister agreed that, if possible, it would be desirable to lay down guiding rules to assist the Land Valuation Courts to ascertain goodwill and to this end officers of the association arc to confer with executive officers of the Minister's Department.