Speculation tax

Press, 1 May 1981, Page 12

Speculation tax

Sir, — I am neither for nor against property “speculators.” The term is usually used emotively. Obviously people who renovate and repair homes to

resell them serve a purpose and naturally they expect to make a profit. However, it disturbs me that Mr Rowling attributes escalation of home prices to activities of such persons. He confuses speculation and inflation. The activities of “speculators” are of minimal significance. By far the greatest percentage price increases have been incurred in higher and medium priced housing and these increases are caused by inflation generally and ever increasing costs of building materials and labour. People are paying more and more in anticipation of costs continuing to increase. It is alarming if the only answer to the problem which Mr Rowling can suggest is an emotive call

for the imposition of a tax which if it is effective at all will be another cost factor. — Yours, etc., J. MARSHALL. April 27, 1981.