}
16
51
have been correctly fixed as it is the Crown rent which was agreed
between the parties before the lease was signed. The first Crown
rent was fixed as the prevailing rate for the particular area at
the time, and the second Crown rent must be similarly fixed when
the 76th year is reached. Premium does not enter into it because
it is a separat transaction, covering the full arm of 150 years.
48. Mr. Caine's contention, if maintained, will create an
anomalous position hereafter. At the time that the first issued
75 plus 75 year leases reach their 76th year, let it be assumed
that new arrivals to the Colony take leases in the sare neighbourhood.
Having paid the upset price, they will enter into a lease at the
prevailing zone rent. Holders of earlier leases, however, will be
paying a higher rent, in the same locality, at the same time. The
question has a definite bearing upon the problem of the 75 year leases now expiring. If our contention is acceptei that they
should, on expiry, be renewed for 75 years, ca payment of a fair rent for the second period the question immediately arises:
Should the rent be the prevailing zone rent; or "a fair rent to be
determined, failing agreement, by arbitration" (to use the phrase-
ology of the 1915 ruling); or "such rent as shall be fairly and
impartially fixed by the said Director as the fair and reasonable rental value of the ground at the date of such renewal" (to quote the terms of the standard lease)?
49.
A
Having now completed our review of all the conflicting
policies which have been announced by the Government in the course
of the last twenty-five years, we proceed to set forth our con-
clusions. We contend strongly that it is over-late now
when many
for the Government to
leases are within a few years of expiry
change over to the policy of insisting on its striot legal rights
as expressed in the lease. The policy approved by the Secretary of
State and announced in 1915 seems to us to be the right one
renewal for 75 (not 21) years on payment of a fair rent for the
second period, to be determined, failing agreement, by arbitration.
50. We pause to remark that, in any case, machinery will be needed to give lessees the right of appeal to an Arbitration Board.