HOUSE OF REPRESENTATIVES.

Dominion, Volume 1, Issue 20, 18 October 1907, Page 8

HOUSE OF REPRESENTATIVES.

THE LAND BILL. Consideration of the Land Laws Amendment 'Bill 'was resumed, in committee in the House ••■of-i Representatives, at Clause 1.66, ■which.relates,to tho method of,.valuing lands compulsoriiy acquired. The clauso provides thai in such cases thn value upon ' which compensation is to bo assessed shall-bo tho capital valuo as sot out in the valuation roll nt ,the timo when tho requisition is gazetted. If it bo proved that, the valuo has increased since tho dato of the valuation, tho amount of the increaso. is to

bo added. In addition to tho Taluo of the land, compensation of 10 per cent, in rospeot of £50,000, and. 5 per cent, in respect of the residue of the valuo, is to bo paid. Where the valuo does not exceed £50,000, &n addition of 10 per ccnt.'is to ho paid. The Minister for Lands moved to amend tho clauso by substituting' tho following provisions:—Where land is taken compulsorily compensation shall bo separately assessed in respect of tho unimproved valuo of tho land, and in respect to tho improvements as follows • '

Minister's Amondment. Tho unimproved value of the' said land shall be deemed to bo the amount at which value is assessed in tho district valuation roll in forco under tho Government Valuation of Land Act,' 1896, at tho timo when tho reauisi,tion for tho talcing of the said land is gazotted.. (2) If tho land so tjilcen or any part thereof is not separately valued in tho valuation roll, but is only a part of a larger area which is so valued, the unimproved valuo ,of the part so taken shall bo deemed to bo such proportion of the Government valuation of the said largor area as the Court doter- - mines to be fairly attributable to the part so taken. (3) The valuo of tho improvements on any land to be tiiken compulsorily undor the ■principal Act'shall be assessed in the manner provided by that Act in respect of the valuation of land so taken. (4) In every, caso there shall be added to the total amount payable,,in respect of, tho unimproved valuo of tho land a further sum calculated as follows (a) If the said amount does not exceed £50,000, then a percentage' of 10 por cents thereof; or. (b)' if tho said amount exceeds' £50,000, then a percentage of 10 per-, cent! in' respect of £50,000 and of 5 per cent, in respect of the residue. , (5) The owner of any estato, or. interest separately .valued, in, tho said' valuation roll may from time, to jtime. • give notice,"in: writing to tho Valuer-Gorioral that he requires the valuation to be increased,and. the Valuor-Goneral shall thereupon insert tho as -increased in a subsidiary roll. The increased valuation shall, for the purposes of this 'section, and : also' for" the purposes of tho'' assessment "of land-tax, ■ whether ordinary or graduated,;under the Land and: Incomo Assessment Act,' 1900, arid its .amendments, and of tho assessment of duties under /the Deceased Persons' , Estates Duties Act, 1881, and its amendments, bo' deemed, to ,be substituted for the . valuationcontained in the district valuation roll, and shall,_: until • the i next revision of the lastmentioned roll, have tho same' effect' and operation as -if made by the Valuor-Gcneral ift: accordance with 'tho provisions of" the' Government Valuation of \Land Act, 1896. (6) Every notice requiring an increase of valuation shall bo given 'to the ValuorGoneral oither in March in jiny year. or. within one month after the date of the notice given by. the Valuer-General of any revision of tho valuation of the land, (7) The itorms "improvements" and "unimproved valuo" * havo tho samo meanings as are attributed thereto iu section • 2 of; the Government'; Valnation- of Land ! Act Amendment Act, 1900. (8) In evory caso tliero; shall; he addeil to the total amount of: compensation payable - nnder the' foregoing provisions a sum equal to.'2 .'per' cent. by. way of compensation for the compulsory taking "of the, land,' arid. by_ ( way of compensation for,any loss or injury in conscs quence of such taking, wjiethoran respect of, tho land or. in aiiy.other respect.. ■■'

Mr, Massey's Objection. 1 i ■ .Mr. Massey. said the Minister, though'explaining tlie'clause, had made 110 attempt to show that it would bo an,improvement.on tho existing law. He (Mr. Massey) considered it the reverse of, a'n, improvement—except .from tlio point of'view of tlie taxing because it proposed to increa;sp;very consider- > ably-, the taxes of those who wero already on the land. In fact, lie thought this the object of the clause. He was riot speaking of the settlers of the future. From the point , of, view of the present-day settlers, 'the clause was a'most objectionable one. The mode of valuation would preclude roading, draining, etc., which had been a cost to the owner, from being included'in tho list of valuations on which compensation. would bo given. Qr-, chards and'plantations would lie assessed at their first cost,- and riot' at "the present-day valuation. ' Ho reiterated that the clause would not improve the. existing law. It would place the farmer Between the dovil arid .'tlio deep soa.,: A farmer would,cither have .to raise the value, of his land for taxing purposes, 1 or stand in fear of having it acquired by. tlio Government. : The Bill proposed to provide that land of any :area : down. to ou' acres within': fifteen miles of. a borough could bo'acquired,' and if that were so, the operation of this clause would be cruel. Ho,moved to have "compulsory" deleted from Clause 66. .Further Criticism. - Mr. Allen said the result ; of' the 'amendment wpuld be to force the owner to put his land up to. the "'highest' value under the threat of its compulsory acquirement by the Government. He intended , to support the Leader of .the Opposition .iri his amendment, '.which was intended to test the desirability of not havingi.such compulsory' acquirement. He contended the clause would increaso local rates. It would also hold'out a threat ovor tho hoad of. every landowner, large and small. The Minister Explains. " The Hon. R.,M'Nab.referred to the proposed substitution of tho fixing of a-value for, tlio old 'method of allowing an owner to go into the Court and give various valuations. Tlio ( clause gave an owner a chance to assess at any valuation ho liked, .arid the Government proposed to pay tho price of that' value, plus 10 per cent., or 5 per. cent, as the case might be, plus also a further 2'per cent.'" Thus, for a property under £50,001) value, 12 por cent, compensation would bo paid. The valuation woiild not bo used for taxation purposesit would not bo placed on tho samo wall. (Opposition jeers.) The members opposite jeered, said the Minister, with increasing heat, but they had not studied the proposal, and knew, nothing about it. Tho valuation would .be placed on a subsidiary roll, and would be available only for tho purposes of tho Land and Incomo 'Assessment Actj arid for death dutios. There 'would be'two valuation rolls' for evoryone who asked to have their valuations raised. The. clause, had been carefully drawn up so; that it should 'not alTect local taxation. As to improvements, if they wore not' included as improvements, • thoy wont into the unimproved .value, on which, of course, an owner would placo his own prico. l The Government practically handed: themselves over to the owners of tho laud. Various Speakers. 1 - Mr.. T. Mackenzie declared with heat that tlio Government had failed to take properties when. offered . to them at a reasonable price, and'had afterwards to pay a'higher value; and this being so, how could-they in justice come forward with a proposal such as this? Why, he asked, should an owner be under tho threat .that unless ho raised his valuation ; his property would pass from him? How would a riian with 1000 acres A Member : It does not.apply to 1000 acres. , Mr. Slackonzao: Then why, does the clauso not say so? At present overy small property, would bo effected. If it was desired- to .acquire the large ostites,' well and good, "but don't let the clauso hang hoavy over the heads of all tho owners in tho Dominion." Mr. Hornsby (Wairarapa) referred to tho old method under which owners could swoar falsely in .tho Compensation Court as to tlio value of their land. It was quito timo something in tho direction of the present proposal was devised.. As to statements regarding within fifteen miles of a -borough being included, somo of tho best properties, were within that radius. . Mr. Hogg: Matahiwi. Mr. Hanan approval of tho proposal because it would be a loss costly means of arriving at the value of a property. It would prevent an owner "blowing first hot and then cold.'' ' Mr. Izard said tho desideratum was to arrive at the truo value of a property. Tho fair value would be that which an owner would name to a purchaser. In addition to tho. sum named, however, an owner would recoi.vc an extra 12 per cent, as compensation for the compulsory requirement. Mr. W. Frasor (Wakatipu) asked what did a man pay for tho concession of being given

a fair prico for his estate? He would havo to pay taxation perhaps for a year—perhaps • for longer, because ho did not know when tho acquisition would take place—on the full market valuo. Whore was tliero a country in tho world .which loviod taxation upon tho full .market value? Yet- this was tho only fair assessment for .purchase purposes. 110 declared that in the process of time taxation for all purposes would be paid upon a valuation which would bo excessive for sucli purposes. .The effcct would be disastrous.to land settlement. The Premier. ' Sir Joseph Ward explained why tho clauso in the Bill was proposed to bo amended. Tho oxpericnce of talcing land under tho Assessment Court had been extremely unsatisfactory. Tho system "in fact was becoming almost unworkable as to arriving at fair valuations. When tho original proposals were circulated opinion seemed to bo that hardship would be imposed in somo cases; honco tho amondment. , Iteferring to tho statement of Mr. Lani; that holders of. 100 acres or inoro would be under a threat of losing their land, he said'that under tho Lands for Settlement Act a holder had tho privilege of reserving 1000 acres of first-class lands, 2000 of second-class, and 5000 acres of third-class; and yet tho Opposition avowed that 100 acres was tho limit I 1 Mr. Lang: Read Clauso 13. Sir Joseph Ward: This attempt to creato uncasiriofes among small holders is unjustifiable. , Why, tho sriiallost estato tiken coiripulsorily was 4329 acres. ltoplying to Mr. Fraser, tho Pre"mier pointed out • that an owner could assess 12 per cent, below tho valuation, and yet obtain the full market price from-the Government.- . The Debate Continues. ' Mr. Lang, replying -to the Premier, said that under. Section-. 13 of tho Act a man could retain only, 10 acres. The Premier said tljis applied to workiricn's homes. -- : .. • Mr. Lang: My wliolo point was that undor tho clauso the Government would have power to tako any small blocks within 15 miles of a borough. • The Premier: Not for land settlement purposes, only for 1 workmen's, homes. Tho Act applied, to lands for settlement. ' M'rl Buddo considered the proposal a fair orie. Ho know of no land that was not put on tho valuation roll under 12 per cent, of its market value. - Mr. Lewis (Canterbury) defended the estate .owners"from tho aspersions-cast upon them in regard to past transactions. He, quoted irista.'nces to show ample land was' offering to render, compulsory acquisition unnecessary. 1 A New Contention. ■ Mr. Lau'renson, referred to tho Property Assessment,' Act, 1885, Clauso 94, which states that' tlie,.Governor in- Council may,' whenever deemed expedient for tho protection of revenue take for tho Crown any property of any kind- whatsoever, and may pay tlie 1 sum at -phich such property is valued, together with ton per cent, unless consent is given to havo'the property assessed at what tho Commissioner thought was a fair cash value.! Ho asserted the principle of tho present proposals existed from tho timo of the passing, of that Act. As to tho Ministor's they were porfectly equitablo; they simply proposed that there should bo somo relation, between' tho prico at which ■pi'operty was assessed for taxation, and that at- which a mail wished to sell. ! • Mr. Massey said tho Property Assessment Act .did not apply to the- present instance. It :simply provided that if tho,Commissioner 'was not satisfied with tho valuo of property tie could givo notice that it would bo takon I'atli-tho then, valuo with 10 per cent, added unless the owner agreed to a fair valuo. Tho Act simply dealt with taxation. Tho Premior: It forces a.inan to havo fair. ' valuation. >, j Mr. MasseyA ; man's property is never in danger under itl Tho Premier: He has to put a fair valuo oil his laud or loso it. ' . : 'Mr. Massey: Tlie .present' Bill sets out that tho laiuhwili bo taken. Mr. Lewis, in. tho ; course'of further remarks, said; that a man never'knew tho'value, of his, property until ho canio to sell. It now meant, that ho would havo to assess at 'an outsido,,price and pay taxes thereon for years to'come'. For and; Against., Mr. Dillon, referring to-tho assessment, of values in tho,past, 'sftid witnesses ( in 'the case of. a Hawke's Bay 'estate had gone jinto l tho court, "slobbered on oath over tho Biblo," and declared what tho?valuo of, tho land was for taxation purposes, but 1 when, later, tho land was to' be taken compulsory a very- different value was placed upon it. , "...Mr. Witty said the Governmont had ;in many instances bought land too dear.- The valuations were generally much lower than tho prices people asked, for their , land. Improvements were usually undervalued by tho Department. Owners who had valued their land for thomselves ■ would havo I .nothing to complain of. The valuers had been inadequately : paid, and' incompetent men had been appointed. ' ' ' . -Mr. James Allen said ho behoved pressure had been brought to bear upoii the Goy.orninent to bring down such a clauso as this in order that it might bo used in tho compulsory taxing of land for workers' homes near boroughs. ' Another object was to increase the revenue from land tax., As a consequence, * an owner who personally, attached a sentimental or 'historic value to his land i, would havei.,to "raise the valuo of tho land in ordor to protect himself iu tbo possession of it. It was iriiproper to imposo such a necessity upon a man. It was possible that a further objection would bo found in the court placing the valuation of improvements at a ation' roll: He insisted that'tho incidonco of local , rates would bo -affected by" the, lower iiguro than that appearing on tho valuclauso.. , , , .. ~ 'Mr. Okoy said tho owner's valuation would be used in the Assessment Courts to raiso tho valuation'- against-'him for local rating purposes. Owners of land near a borough'would virtually havo to, rate thomsolvos on its prospective' valuo.'. . Mr. Mandcr said ho regarded tlio clauso as another instanco of tho attempt'to transfer taxation from tho town to tho country.

Tho Burden of Rates. Mr. Horries contended that this clause, .taken with Clauso CD (which permits land within a certain distance of a borough having a population of not less than 15,000 to bo taken for workers' homes), would force owners of small' farms to keep tho valuation up to tho topmost pitch. This would, load to somo holdings that did not pay any. land tax being .heavily burdoned with local rates. . Tho Hon. G. 11. Mills said that tho old system of fixing the price by a Compensation Court was admittedly too cxpensivo. Under tho proposed scheme, when it ,was known that an estato, was likely to bo compulsorily acquired, tho owner would put up tho valuo by £2 an aero. ' The Ex-Minfster's Views. .Tho Hon. T< Y. .Duncan told of . a caso in 'which tho owner's of ono estato, which was about to "bo acquired by the Government, obtained valuers from all parts of tho Dominion, and retained them as witnesses, hut only called for,'.tho evidence of those who would como up to tho price wanted. Instead of. tho £300,000 that was asked, the Court awarded £180,000. In his (Mr. Duncan's) opinion, that was £30,000 too much, but it was commonly stated that they spent £20,000 .in getting it.. The present proposal would raise the price of land higher than ever, and now that the rents of Crown tenants under reiiowablo leases woro to bo reduced, tho Government would be placed in a worso position. It would also bo bad for the settlors, bccauso the Government would liavo to charge higher rents. He did not liko either tho old method or the proposed now ono, and wished some combination of tho better points of tho two wero possiblo., , ~ Compulsion Objected to. Mr. Lang, reiterated a statement which ho had mado in tho afternoon, and which had been traversed by the Premier. He said that ho had always objected to' the compulsory clauses of tlio Land for especially in view of tho largo area's of Crown and Native lands lying idlo. Ho protested against tho extension of tlio system of compulsory purchaso to small farms, which would be ert'ected by Clauses 00 and 09 of this Bill. Jlr. Massoy ridiculed tho suggestion that there would be two rolls, ono for the hmtl taxation and ono for local rating. Tho 10 per cont. to bo added to tho valuation in order to arrivo at the compensation prico of

estates up to £50,000, applied only to the unimproved vnlucs. Consequently, with tlio extra 2 per cent, proposed in the final subclause, the total addition to the valuo of the property would bo 5 per cont. Mr. Herries said that when one owner put up his valuation beyond the real valuo of his land so as to avoid compulsory purchase, tlio valuer would put up the valuations of all the surrounding lands, and the wholo neighbourhood would be penalised. The Premier. Tho Premier (Sir Joseph Ward) complained of the repetition of the speeches that had been made. There had been four hours and a half' spent upon this one clauso, and the same speeches had been made ovor and over again. The Amendment Lost. Mr. Massoy's formal amendment (which was practically an endeavour' to kill tlio clauso) was lost by 45 votes to 21. . The division was as follows :• — Against tho amendment (45)c —Messrs. E. G. Allen, Arnold, Barber, Barclay, Bennot, Buddo, Carroll, Colvin, Dillon, Duncan, Jill, Field, Flatman, I'owJds, Graham, Gray, Greenslado, Hanan, Hogan, Ilogg, Hornsby, Izard, Kaihau, Kidd, Laurenson, M'Gowan, M'Nab, Macphorson, Ngata, Parata, Poland, Poolo, jLloniington, Ross, Seddon, Sidoy, Stallworthy, Stevens, Steward, Tanner, Thomson, Ward, Wilford, Witty, and Wood. For the amendment (21): —Messrs. Aitken; Allen, Bollard, Fisher, W. Fraser, Hardy, Herries, Houston, Jennings, Lang, Letlibridgo, Lewis, T. Mackcnzio, Major, Malcolm, Mauder, Massey, Okey, Reid, Rhodes, and Symes. Mr. M'Nab's Amendment. The Minister then' moved his amendment, which is given übove. At Clauso 5, Mr. J. Allon moved to strike out certain words which provided for tho unimproved valuation to be made under tho Land for Settlemonts' Act, 1900), in order to substituto another mothod of assessment under. tho Public Works Act, 1905:

Various Alterations. Mr. Allen's amendment was ■ dofcated by 45 votes to 22.• A further amendment by Mr. Herries to protect properties of £15,000 value from possible seizure for tho purposes of workmen's homes was dofcated by 38 to 23. Tho Minister moved to obviate the possibility of the proposed subsidiary roll being used for any other purposes than thoso set out. , Messrs. Aitken and J. Allen pointed out that thd subsidiary roll must. influence the Valuer-General' in the matter of valuation, and also tho local'bodies..' ... ~ Tho amendment was adopted. An endeavour by Sir. J. Allen to prevent tho application of the subsidiary roll to the assessment of death duties was defeated, by 31 to 17. , . To-show liis disapproval of the proposed method .Of valuation, Mr. J. Allen moved to strike out sub-clauso 10, which brings "improvements and unimproved value" under the provisions df tho Government Valuation of Laud Act- Amendment, Act, 1900. . Mr. Allen had previously contended that, undor these provisions, a man would fail to secure value for drains, roads, etc., for "tvliich ho had paid: Lost by 46 to 17. '' . Clause 66, Passed. The remaining sub-clauses were then adopted, and Section 66 (now becomo .Mr. M'Nab's amendment) was adopted. Tho remaining clauses of Part 11. of the Bill wero disposed of with minor amendments. New Glauses. Part 111 of tho Bill comprises new .clauses. Clauso 74 prescribes that Choviot settlers may, under certain conditions, renew their leases at a rental of 5 per cent, of the total capital value, less tho value of improvements. Mr. J. Allen moved to make tho rental per cent, to, bring theso ■ settlers into; lino with Lands for Settlement settlors.—Lost'by 48 to 15. Progress was then reported, and tho Houso adjournod at 1 a.m. Parliament has now only a fow new clauses to deal with in tho Land Bill, and it is expected that the committee stages will be completed by to-night. < • ' :