THE PERPETUAL LEASEHOLD SYSTEM.

Bruce Herald, Volume XVII, Issue 1759, 18 June 1886, Page 4

THE PERPETUAL LEASEHOLD SYSTEM.

Speaking to Dr Newmans motion, relative to reserves for charitable and other purposes, Mr D. Reid said: — I agree with the honourable member for Port Chalmers that this discussion at present is rather inopportune. The motion, which is a very praiseworthy one, is to consider whether ifc is advis> able to set aside certain reserves for educational and other purposes ; but the debate bus drifted into a discussion as fco whether perpetual-lease or freehold ia the most desirable tenure. I have heard objections urged to the perpetuallease system, but I have not heard any reasons given. Ifc is well known that that system was for the first time thoroughly brought before the country under the Act of last session, and I believe the reason of its non-success so far is that the people of the colony have not had an opportunity of becoming acquainted with the provisions of the Act. Afc the first blush I was opposed to the principle, but I have learned since that that was sentiment pure and simple. I was opposed to it because the name had something in ifc indicative of insecurity of tenure. It is a mistake to call it perpetual leasehold. Ifc shou Id be called conditional freehold, because any man taking up property under the system has practically a freehold for thirty years. He has absolute security of tenure, and no one can turn him out, so long as he pays reasonable rent, and fulfils conditions which are notsfcringent. I contend that the conditions are easier than those that a man has to fulfil if be has a freehold, because a freeholder could not make interest out of his property by performing only the conditions imposed on a perpetual-leaseholder. I considered ifc my duty, during the recess, to lay the advantages of the system before my constituents, and every one I addressed on the subject agreed that ifc was -a system which would prove of immense advantage in future to this colony. What has crippled our firmer? in the past ? We all know that ifc has been fche mortgaging. Under perpetual lease all that a settler has to pay is 5 per cent, on the value of the land taken up. No farmer has been able to obtain money afc 5 per cent.— they have had to pay from 8 to 10 per cent. ; and, when the price of staple products went down, the lands passed away from them. Under this system there can be no mortgaging. A man does not require to lauueb out his capital in order to obtain possession ; all he has to pay is 5 per cent, on the value of his land. Now, what are the advantages to the State? It has many advantages, and that is why I wish to refer to the remarks of the honourable member for the Taieri. He said, " When does the land under any system go from fche Government?" Cercainly ifc never does j bufc under the old system all thit fche Government gets is a t*x on the assessed value of perhaps a penny or three farthings in the pound ; and, if the farmer

is not able to improve his land, the tax amounts to very lifc.tle. Bufc, under the lease system we get 5 per cent, on the value, which far exceeds any taxation we can get. How has this system worked in my own town of Milton ? Milton has a revenue of £1200 per annum, our local taxation is less than that of any town in the colony, we bave not a shilling of public debt ; and why ? Because we enjoy the advantages of the perpetual-lease system from our endowments. Like all the people in Otago, we were far-seeing, and applied for endowments, which are now sufficient to enable our twelve hundred inhabitants to go on prosperously and enjoy all the luxuries of life. If that system works so well for us, why should ifc Dot work equally well if applied to the whole colony ? 1 hope honourable members will look afc this subject from a proper point of view, and not think that because the tenure is leasehold in name it is also leasehold in reality. There is no better system in the world. With reference to the motion, I think ifc is the most sensible motion brought before the House this session.