worth £2,000 per annum, the ground rent should be about £400.
The Hon. Mr. Caine:
Whereas here it is less than that?
Mr. Richardson:
Yes.
57
In reply to Sir Vandeleur Grayburn, Mr. Richardson explained that he could not state a figure off-hand for the renewal terms for a particular property. To give a figure would entail in- spection of the property, measuring up of the building and of the area of the land, consideration of the type of building, whether brick or concrete construction, and calculation of the net profit rental (not taking exceptional times but basing it on the ordinary economic rent).
In further remarks, the Hon. Mr. Caine said that Crown rent was not fixed in relation to the value of the land.
It was furely arbitrary. The Crown rent for the whole of the City of Victoria was $1,000 an acre: in other areas the rates were lower, but within the City of Victoria the Crown rert was the same throughout, and the difference in value was taken solely in the difference in premium which might vary from $60 to $5 a square foot.
The fact that Crown rents had been arbitrarily fixed had led to misunderstanding in the public mind. People had come to think that Crown rents represented the Government's view as to the value of the property.
Sir Vandeleur Grayburn:
Do you still control rents?
The Hon. Mr. Caine : That is a separate issue. The Evictions Ordinance will have to be taken into account. As Mr. Richardson has said, calculations have to be based on normal con- ditions and not on exceptional times like the present.
Sir Vandeleur Grayburn remarked that difficulty might be expected in respect of mortgaged property. The decreasing value of leasehold had never been taken into account by the Chinese who were the large holders of mortgaged property. If there suddenly came a time when a large sum had to be paid as premiur, the mortgage would be a dead loss. There was no hope of covering the premium out of earnings on the mortgage at the present time, es - pecially in view of legislative restrictions on increase of rents.
The Chairman mentioned the importance of a definite statement keing made to the public on the subject of Crown leases.
The Hon. Mr. Caine agreed as to the importance of a clear statement. All the Government could do was to make a statement of principle: they could not possibly come down to figures be- cause each property had to be separately considered.
The Chairman asked if the Government would be in favour of the establishment of an Arbitration Board consisting, say, of the Director of Public Works, the Land Officer, an architect and an accountant. He thought the Government would admit that it was in an awkward position, having an interest both ways.
The Hon. Mr. Alabaster: We have a Board for Resumptions.
Mr. Whyte-Smith: One does not usually go to arbitration on
a point which is a matter of policy.
The Hon. Mr. Caine : I take it that the arbitration would be on the value of the individual properties?
Mr. Mackichan:
And on economic values, too.
No comments yet.
Private notes are available after approval.