NEW LAND SALES POLICY

Press, Volume LXXXVI, Issue 26055, 7 March 1950, Page 6

NEW LAND SALES POLICY

FORMER MINISTER’S CRITICISM EFFECT ON RETURNED SERVICEMEN (New Zealand Press Association) WELLINGTON, March 6. The sweeping changes affecting property prices, tenures, and rentals in city and suburban areas made a mockery of the National Party’s premises on rehabilitation, said Mr C. F. Skinner, M.P., former Minister of Rehabilitation and Linds in the Labour Party. The National Party had promised to continue, even improve on, the policy established by Labour of compensating returned servicemen > s far as possible for the years 'pent in service to the country, and for economic opportunities they lost giving such service, said Mr Skinner. The recent changes must have a detrimental effect ,on all former servicemen still needing rehabilitation assistance except the e intending to become farmers. The National Party had thrown overboard its election promise to retain land sales control on all properties between £750 and £3OOO in value. Under the Labour Government thousands of former servicemen had bought homes and businesses on the basis of 1942 values, and there was no black marketing through the Rehabilitation Department. Hundreds, perhaps thousands more, had patiently awaited their turn to establish a home or business. These would now have to pay the value dictated by the seller and shoulder the greatly-increased burden of debt. “Values Must Rise” “Property values must rise, for obviously on a free market with the demand still well ahead of the supply those with the necessary finance will be prepared to pay prices even in excess of the replacement cost less depreciation, and building costs are rising every day,” Mi Skinner said. ’I hey must rise even more steeply after the blanket increase in the house-building loc.n to £2OOO. The increased loan will not result in any more houses being built than with the £l5OO limit. Every builder in the country was working at full pressure building houses before the loan increased, and the extra £5OO will soon be absorbed without benefiting home-builders.” Businesses, too, would now be worth what the buyer would pay, and “goodwill” would, rise to spectacular heights. z Mr Skinner said that the continued control of the sale of farm property meant that former servicemen settling on the land would retain the full benefit of rehabilitation as laid down by the Labour Government with a basis of 1942 values and the writing off of surplus development costs, while his comrade in to vn paid full market values . for all property. Was this justice or equality of compensation for sacrifice? Mr Skinner added: “There will now be three classes of rehabilitation: (1) That under the Latour Government which tried to help all former servicemen without distinction; (2) that for former servicemen in urban areas who have still to be assisted under the National Party’s new policy; and (3) that for former servicemen being settled on the land who will retain all the previous advantages. Why this distinction between town and country? Is it because the National Party looks to the country districts for its major support?” .