DANGERS SEEN

Dominion, Volume 36, Issue 270, 10 August 1943, Page 6

DANGERS SEEN

Withdrawal Of Properties From Market ' “Everyone is desirous that all possible facilities shall be provided to returned servicemen enabling them to acquire farms or houses at reasonable cost, savs Mr. J. G. Harcourt in a letter to the Editor of “The Dominion.” “The Bill now before Parliament, however, whilst ostensibly for this purpose, goes much further, and is designed to restrict the freedom of all propertyowners. There is no justification for the cloaking of what is purely a stabilization measure under the .Servicemen’s Settlement Bill, and the only conclusion one can draw* is that the Government is doubtful whether the measure would go through by itself without the cover and patriotic obligation to returned men.

“In any case, the Bill will defeat its own ends, as it will cause the withdrawal from the market of all properties except where a sale is essential. If there have been cases of high prices for farming land such have (been paid mainly (by the speculative or investing buyer. This evil could be cured by requiring a declaration to be filed' with every application for transfer of farm property, in which the purchaser would have to declare that the property was required for his own use and working. No farmer is likely to pay a higher price than the productive capacity of the farm warrants. “With urban properties land values have not soared 1 .; in fact, vacant building sites- are practically unsaleable today. In the same way, tenanted houses are also largely unsaleable. The only urban property which has shown marked and unjustifiable increase is the house with vacant possession. This increase is in the nature of a scarcity value consequent on the acute shortage of homes. Need For Building.

“What is required today is not a restriction of sales, but a vigorous building campaign both Government and private, the latter aided, if necessary, by an appreciable subsidy. The scarcity of houses is at the root of the .whole trouble, and the incidence of this condition follows logically on the housing policy of the'Government over the last few years. Brivate enterprise was first strangled and Government houses were Built at excessive cost. The freedom of the landlord was interfered' with and labour charges in building and all allied trades have increased to a prohibitive figure. Certainly the war and manpower difficulties have helped, but the present situation wouldi have been readied in a lesser degree without the war ever occurring. The plain fact is that sufficient houses are not available, nor will the present Bill create them, and the imposing of restrictions on sales will not help the situation, which- can only be cured by attacking the cause and providing inore houses nt nn economic building cost. “The Bill as framed will cause destructive delay and create severe hardship on civil servants and others who have, owing to scarcity, been forced to pay high prices, and may subsequently be moved to other parts of the Dominion. Auctions will disappear, and the protection that an auction gives to a trustee in carrying out his obligations will be removed. Additional and onerous costs will be thrown on the man of a small capital if he is fortunate enough to be able to purchase a house, and any abortive attempt at selling will still entail appreciable expenditure. “Contrary to Justice.”

“Finally, the Bill as framed is contrary to tho. ordinary tenets of British justice. The Courts as constituted are Government appointed and are empowered to call evidence independent of the interested (parties, and provision is made for the attendance of a Government representative entitled to crossquestion and produce evidence. What possible interest can a Government representative have in the fixation of a fair and stable price as between a willing buyer and a willing seller. It is greatly to be desired that the (people of the Dominion will realize what is being attempted against them in this Bill, and will see that it is not hurriedly placed on the Statute Book without a very full and exhaustive inquiry into its incidence and possible effects.

‘‘There are in the Bill many more points to which grave exception must be taken, and it is to be hoped that all interested organizations will bring them before the Government and the public without delay, thus ensuring that no hasty action is taken.”