2.
42
X
(18) 54051/40
5.
does not provide for adequate development of the area the Director of Public Works may submit a specific recommendation that it be increased. This procedure has been decided upon so as to ensure that the process of remedying the under- development to which my predecessor referred
at para 10 of his despatch under first reference is not carried to the opposite extreme.
It will be noted that the Chamber of Commerce has objected to the withdrawal of the provision in the previous announcement that a rebate of the premium would be allowed in respect of war damaged premises. Many of these properties have subsequently changed hands at a profit, and it is not considered that this privilege should be continued, particularly as it is provided in paragraph 5 that the premium will be based on the value of the land only; and also because the rebating of the premium would be, in effect, a measure of war damage compensation available to one section of property owners alone; a policy which now lacks the justification which the urgent need to induce early rehabilitation provided when the previous announcement was issued on the 16th. June 1946. It will also be noted that the final paragraph of the Chamber of Commerce's letter ignores the opening work of paragraph 5 of the announcement.
6. It will be seen from paragraphs 4 and 5 of the statement that it is now proposed on regranting these leases to allow the Crown rent to continue at the present rate for the remainder of the term of the present lease, and then to reassess it at the rate then current for Crown Land in the area in question; while it is proposed to base the premium on the value of land prevailing in the district at the time of the application for the renewal of the lease.
7.
With regard to the calculation of the premium, it is considered that as lessees have had ample opportunity to avail themselves of the specially advantageous terms, it would be equitable and more appropriate in the present circumstances when it is desired to induce further rehabilitation and development, to calculate the premium on the land value only (to and couple it with a revised building covenant ranging from a requirement to maintain and keep in good repair existing buildings where the land is properly developed, to an appropriate new building covenant where the property has not been adequately developed. These proposals differ from those approved by Lord Moyne in his despatch No. 37 of 17th. March 1941, when the circumstances were very different, whereby the premium was to be based on the developed value of the land and a rebate allowed according to the stage development had actually reached, but I trust you will agree that present circumstances justify the arrangements now proposed.
8. In other respects the terms which it is now proposed to apply are consistent with those which were published on the
(2) 40-47-16th. June 1946, and which you approved in your telegram No. 732.
As it is desired to deal with a number of recent applications for the renewal of these leases, and to make known the terms on which further applications will be considered as soon as possible, I should be grateful if I might be given early notification whether you approve of the terms of the statement enclosed with this despatch.
I have the honour to be
Sir,
Your most o humble servant,
GOVERNOR.