XN000022-1978-03-14 — Page 2

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TUESDAY, MARCH 14, 1978

CONCESSION SCHEME FOR CONVERSION

OF

CROWN LAND LICENCES TO SHORT TERM TENANCIES

******

THE GOVERNMENT ANNOUNCED TODAY (TUESDAY) A STAGED CONCESSION SCHEME RELATING TO CONVERSIONS OF CROWN LAND LICENCES TO SHORT TERM TENANCIES.

UNDER THE SCHEME, THE RENTALS PAYABLE BY THE EX-LICENSEES WILL BE GRADUALLY BROUGHT UP TO THE CURRENT STANDARD RATES OF $65 PER SQ. METRE ($6 PER SQ. FOOT) PER ANNUM FOR OPEN STORAGE AND $130 PER SQ. MÈTRE ($12 PER SQ. FOOT) PER ANNUM FOR BUILT-OVER AREAS OVER FOUR YEARS.

ALSO THE STANDARD RATE IN RESPECT OF BUILT-OVER AREAS WILL ONLY BE INTRODUCED AFTER THE TENANT HAS REACHED THE STAGE OF PAYING AN UP-TO-DATE RENTAL FOR OPEN AREAS. AT THE SAME TIME THE LICENSEE WILL BE GIVEN A SIX-MONTH NOTICE TO CHANGE-OVER AND DURING THIS PERIOD HE WILL CONTINUE TO HOLD A LICENCE AT THE MUCH LOWER CROWN LAND LICENCE FEE.

A GOVERNMENT SPOKESMAN EXPLAINED THAT SINCE 1974 IT HAS BEEN THE OFFICIAL POLICY TO CONVERT ALL CROWN LAND LICENCES OTHER THAN THOSE FOR AGRICULTURAL AND DOMESTIC PURPOSES TO SHORT TERM TENANCIES, WHICH GIVE THE TENANTS A BETTER DEFINED SECURITY OF TENURE. AT THE SAME TIME THE TENANTS SHOULD PAY THE MARKET RENTAL FOR THE VALUE OF THE LAND FOR COMMERCIAL PURPOSES INSTEAD OF THE STATUTORY LICENCE FEE WHICH DOES NOT AT ALL REFLECT THE BENEFITS DERIVED FROM THE USE OF THE LAND.

HE ADDED THAT CONVERSION OF CROWN LAND LICENCES TO SHORT TERM TENANCIES HAS BEEN A CONTINUING PROCESS AND UP TO NOW, 145 CROWN LAND LICENCES HAVE BEEN CONVERTED.

THE UMELCO RECOGNISED THAT THE CHANGEOVER FROM PAYING THE LOW LICENCE FEES TO THE STANDARD RENTALS MAY CAUSE HARDSHIP TO SOME OF THE LICENSEES AND PROPOSED THE INCREASE IN RENTALS SHOULD BE PHASED IN UNTIL THE CURRENT MARKET RENTS ARE REACHED. THIS HAS NOW BEEN ENDORSED BY THE EXECUTIVE COUNCIL,

UNDER THE NEW