How the Compensation Act Operates
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A Brief Explanation of a Measure Introduced at the Start of the War and the Manner in Which Its Provisions Operate
WITII the many implications and repercussions arising from the Compensation (Defence) Act, it has been ,thought that a short explanation of this measure, which was passed at the outbreak of war, might be helpful. This measure concerns the compensation payable by the Government where goods, vehicles, property, etc., ate requisitioned or acquired.
The compensation price payable for ordinary goods, if the case concerns a producer, or manufacturer, is a sum to cover production costs, plus the usual profit. In the case of a trader who is a non-producer, the amount is the costprice, plus ordinary profit. For other persons—non-traders:--the compensation amount is that which might reasonably be realized ordinarily, regard being paid to the condition of the goods, but no account is to be takenof any profit likely to be made on a sale of the commodities.
If there be maximum prices for the products in question; or they be pricecontrolled by law, then the foregoing provisions will not authorize any increase on such prices.
Amount Payable for Requisitioned Vehicles
The amount payable, where vehicles, etc:! are requisitioned, a provision which also applies to aircraft and vessels, is that usually payable by a person for the use or hire of such a vehicle, with the hirer responsible for the cost of insurance, maintenance, and the running of the vehicle; if the owner operates the: vehicle for the authority, an extra amount is -payable.
Provision is made for compensation for making good any damage while the vehicle is requisitioned, no account being taken, in this direction, of fair wear and tear, and if there be a total loss, the value of the vehicle, at the period of the occurrence of the damage which caused the loSs, is payable. • Where the vehicle is acquired, the price paid is that considered as representing the value at the time of the acquisition and, in assessing this amount, no account is to be taken of any amounts which may have beeome payable for hire, etc., or for any damage.
The rent payable, where'premises are
taken over, is a sum considered to be what an ordinary, tenant would pay under a lease granted at the requisition date, with the tenant responsible for the usual rates and taxes, arid for repairs and insurance, and other expenses • necessary to maintain the premise's, so as to command that rent. Furthermore, a sum may be payable for making good any damage which may have occurred during the occupation, except in so far as the damage may have been made good during that period; if the rent has been assessed strictly, fair wear and tear may be taken into account in assessing this amount,
Position When Letting
Value. Is Down -Where the annual letting value is diminished as the result of things being done to the property, such as the erection of buildings, demolition, etc., a sum equal to such depreciation will be paid in instalments until the property is restored to the state it was in before the requisitioning, that is, if it be decided to so restore, othenvise a lump sum will be paid by .the authority to meet what is considered to be the extent of the depreciation in value.
If, in carrying but the handing over of good;, vehicles, property, etc., transport or incidental expenses have• been incurred; these are payable by the authority. Where machinery, fittings and fixtures have to be removed, the cost of removal and storage would come under this provision, and if a return to the original premises beUltimately made, the cost of setting-up in those premises would be met. If instead of. storing the machinery, etc„ this be set up in other premises, the cost of this 4, will be payable.,