Crown land sales likely to cut deficit

Press, 8 July 1986, Page 8

Crown land sales likely to cut deficit

By

MARTIN FREETH

in Wellington

Valuable Crown land near Te Anau and Taupo may be sold in the Government’s drive to cut this year’s fiscal deficit.

The Prime Minister, Mr Lange, pointed to the sale of unused land as one element in a package of Budget measures put to the Cabinet yesterday. The Budget has been delayed while the Government reviews its expenditure again to recoup extra costs of $lOOO million it says have recently emerged, largely out of National’s "think big” projects.

Mr Lange declined to say where specific expenditure cuts would be made but said some would be announced before the Budget, now ex-

pected late this month or early next month.

He said the Government was also looking at the income that would come from selling assets with no social use or economic return.

Mr Lange said that the sale of valuable land on the fringe of towns had long been considered. The Lands and Survey Department holds a “land bank” of properties originally acquired for settling new farmers. The department’s assistant director-general, Mr Kelvin Cooper, said the land included large pieces round Te Anau and Taupo that had high value for tourist or residential development. Other blocks held throughout New Zealand included much land that had a low value because

it was isolated or would have a high cost to develop for farming, Mr Cooper said. He could not put a value on the blocks that would be attractive to developers because of their proxmity to towns or tourist spots. No decision had yet been taken to dispose of such land, Mr Cooper said.

Referring to other steps to cut the deficit, Mr Lange confirmed that the Government was looking at an end to some State activities. The cuts would probably involve the loss of some jobs but not as many as would already result from the expenditure review statement announced in May, he said.

Mr Lange repeated the assurance that the cuts

would not touch the provision of health care, education, and social welfare Jjenefits. However, these departments would be asked to trim administrative spending. The new expenditure cuts came as a challenge to individual Ministers and departments to find savings in line with the Government’s efficiency principles, Mr Lange said.

He ruled out any postponement of the personal income tax cuts proposed to take affect on October 1, or an increasing of the rate of GST from 10 per cent, as alternative ways to reduce the deficit.

Mr Lange said he found the idea of a tax specially to meet the costs arising from the “think big” projects “politically attractive.”