UNIT SUB. YEAR

Press, Volume C, Issue 29696, 14 December 1961, Page 23

UNIT SUB. YEAR

Sale Of Sections On Terms (NZ Preu Association) AUCKLAND, Dec. 13. Unit Subdivisions, Ltd., Auckland, has been forced by Government policy to sell more sections on terms than had been budgeted for, but directors are taking action to offset this position, the chairman (Mr F. S. Cooper) told the annual meeting last night. He said that the company hoped to provide the bulk of the sections needed by the Paramount group in the Auckland province, and later further afield. Mr Cooper said that the £10,802 profit before tax in the first year was considered very satisfactory as the company first had to plan and carry out subdivisions before it had any goods for sale. Building Proviso Shortly after its establishment the company received a blow when the previous Government stopped acceptance of all deferred payment licence sections from companies subdividing land unless they also built homes. When the Government modified its decision and agreed to accept 40 per cent, of sections for lease purchase the company pushed ahead. But it was ultimately found that in submitting 100 sections, to have 40 accepted, the Crown fixed the price of the other 60. As these prices were below market value this was a direct form of price control, Mr Cooper said. Although selling on terms was more profitable it tied up a considerable portion of funds which could otherwise have been used for further development.