21
(b)
Government statements on the question.
7. On 8th March 1915, in answer to a petition presented to Government on 8th March 1912 by Messrs Dennys and Bowley on behalf of certain property holders on the Peak who asked that leasees of lots on 75 year leases should be given a Title to a renewal for a like term of years on the expiration of such a lease, it was stated that the Government would in the event of the land not being required for public purposes on the expiry of the lease, give the lessee the right to a renewal for 21 years (later 75 years) at a fair rent to be determined, if not agreed by arbitration. If the land were required for public purposes, no compensation would be given for buildings on it (SS.29-31). This reply is said to have confirmed public belief that renewal would be granted at re-assessed rent and without exacting a premium.
8. On 14th May, 1925, the Colonial Secretary stated in the Legislative Council that it was the Government's intention to grant applicants a new lease for 75 years at the current rate of Crown Rent for the locality ("Zone rent"), renewable for a further 75 years at a re-assessed Crown rent, subject to a guarantee that land would be developed and subject also to a renewal fine. The latter would vary according to the circumstances, being heavier for undeveloped than for developed land. This it is maintained red from previous information in that (1) it brought in the al fine for the first time, and (2) no details were given of the sessed" rent for the second term i.e. was it on the same basis e standard 75 + 75 years lease base(see S.3 above)?
he Government, while departing from normal leasehold practice the "fine" were also for the first time insisting on their strict
rights over their reversionary interests (SS.32-37).
It appears that this policy has been altered lately and ir lessees are now to be offered (1) a 70 year lease dating from ate of the original lease with right of renewal for 75 years.
ii) a renewal fine to be paid at once.
ii) Zone rent to be paid now and not postponed to end of lease. (v) rent for second lease period to be the fair and reasonable
rental value of ground at the date of renewal.
(ii) and (iii) are taken to constitute the "reversionary interest" e Government ($5.38-40)
}
Conclusions.
It is too late for Gkvernment to change over te policy of ing on strict legal rights. The policy announced in 1915
's the right one - renewal for 75 years on payment of a fair rent
e second period to be determined, failing agreement, by an arbitration
including an accountant and a valuer, This
emove inequality between the 75 years renewable and the 75 years newable leases. In some cases where the area of the lease is
ge that that payment of current Crown rents would be an uneconomic
lessees should be allowed on termination of their present to surrender unwanted portions and have a garden lease at a rent for part of the land.
(II)