ALWAYS THE LAND.

Auckland Star, Volume LVI, Issue 188, 11 August 1925, Page 6

ALWAYS THE LAND.

If the Opposition is alert, a statement by the Minister of Lands on Friday ■should give the Government an unpleasant half-hour. Mr. McLeod says there is an "outstanding difficulty" about Inlying land for settlement. "The Inv said that under the renewable lease, which was the most popular form of tenure at present, land should be let at 4} per cent, with a rebate of h per cent for prompt payment. On an average, the cost of administration was one-eighth per cent. This meant that land bought with money for which the Government had to pay 5 per cent in London had to be let at a net rate of three and seveneightha per cent." Mr. McLeod went on to say that in recent purchases his Department had found it necessary to add at least one-third to the valuation of the land in order that the State might not lose mono} , in meeting the interest charges. What is to prevent Parliament from- adopting the simple course of raising the rate of interest where money has been borrowed at what is now an unprofitable figure?' It is certainly not right that the State should lose money on the purchase of land for subdivision, but we do not see any real difficulty, outstanding or otherwise. To get over the loss by adding to the valuation is an extraordinary proceeding. Surely there is only one proper basis of valuation—the true value of the land, and no other consideration should be allowed to affect the calculation. We may also observe that, according to the Minister's own statement, the renewable lease is "the most popular form of tenure." Why, then, has the Government been so keen to part with the freehold of what is left of the national estate? Those who believe, with us, that the Government has been most prodigal in this matter of freehold surrender will note the Minister's admission of the popularity of leasehold.