CO129-448 - Governor Sir May - 1918 [4-6] — Page 274

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4. Inland Lot 1925 is situated near the top of a cliff, which has resulted from quarrying operations in the past, and is well above the level at which such operations are now in progress. I am informed that Mr. Stevenson, who at present occupies Mr. Mackay's house, does not complain of any annoy- -ance from the operations carried on, notwithstanding what I have mentioned.

5. The property has been valued by Mr. Wright, who reports that, based upon the rental at present received, its value is $12,000. Proceeding on other lines, he arrives at a value of about $11,000, but, for present purposes, the income derived by Mr. Mackay from the property is the correct basis upon

which to proceed.

卷。

After making the necessary deductions in respect of

the return derived by Mr. Mackay on his capital expenditure ($12,000) amounts to 7%.

Crown rent, Insurance, Repairs, &c.,

I do not therefore see that Fr. Mackay has any grounde for claiming compensation from Government on account of the quarry having prejudiced his property.

7.

Having regard to possible, future developments in connection with this Department, I am of opinion that the best course would be for Government to resume Mr. Mackay's house. The Officer who succeeds Mr. Thomas in charge of the quarry

might be required to occupy the house. So long as Mr. Stevenson occupies it, the Government would save his present house allowance ($45 per month) and could impose a charge for rent.

The total rent paid by Mr. Stevenson at present is:-

Rent,

Ordinary rates,

Total, per month,

$85,10

3.50

$88.60

(Signed) W. Chatham,

Director of Public Works,

18, 1, 18.