LABOUR'S LAND POLICY

Evening Post, Volume CIX, Issue 93, 22 April 1925, Page 15

LABOUR'S LAND POLICY

TO THE EDITOH,

Sir, —Your summary of the proposed administrative clauses in connection with the land policy o£ tho Labour Party covers the main points considered by the delegates at the conference just concluded. The proposals with regard to date of valuation are as follow: —

The price at which the lando-vvner shall sell will be determined at the timo of transfer. Tho original valuation in connection with tho jiolicy will bo made as at present.

*Hio unimproved value, value oE Improvements, and ; the capital value, hay. ingf been determined, the records will be kept in the Lands Department.. In addition to the original valuations, valnations will be made at the -tune ot each transfer. If the value of the land is the same as at the original valuation, this sum will be paid to the transferor. If the retiring occupier has made improvements subsequent to the original valuation, then the value of thcro improvements will be added to tho amount of the original valuation.

Reierrmg, again, to valuations and transfers, you ask: "Does this mean, tha* the owner's recorded interest is to bo al tered from time to time, and he is to bo paid upon the latest record?" You quote an example as follows: — "Suppose, for example, that A's land is valued in 1926 at £15 per acre, because wool prices are low and communications are poor. After seven years another valuation is made. In the meantime roads and railways have been built, and it ia found that the land is suitable for dairying, so it is valued at £35. The owner decides titan, to transfer to the State—at £15 or £35?"

Presuming the valuation of A's land to have been made in 1926 at £15 per acre, and that railways and roads are subsequently built, which add £20 to the valuation. In (say) 1932 the land is valued at £35 per acre. The proportion of the added value, £20 per aero, duo to improvements made by tho occupier would be credited to him together with the £15. per acre as-at the original valuation. The increase m unimproved value, due to the railways and roads, being reserved for the community. . -Tho" communications are improved ■ by the provision of railways and better roads. In so iar -as the community builds >the railways arid road 3, the increased value of the land is due to the community.- If the Toads were built out of special rates on particular land, and these rates were paid by the occupiers, then the added value due to the road, or roads, would be treated as improvements, and would be credited to the retiring occupiers at the time of transfer.

The formula is summed up inithe statement:—

The occupier will he credited with, all

values created by him. Tho community will receive all values created by the community. Tho basis of the system is inherently the same as that on which you congratulate the Government for bringing into operation in connection with the Hutt railway deviation^ JTho added value to the land will be due to the railway built by the community. The added value, therefore, come 3to the community. 1£ right at the Hutt,, why not elsewhere? The policy applies to urban as to rural land.

The State is ultimately to purchase all the land, ■ ■when tEe occupiers desire to transfer. The present tenure is not affected in the slightest degree. Any person, or persons, who use and occupy farm lands, or house, office, factory, -warehouse, or other building, may still continue in occupancy after the system comes into operation. The only restriction is the right to speculate in community values. The following table shows the cost to the ■people during "the past fi-ve years, and illustrates the vjciousness. of the present systems—— - i LAND TRANSFERS; ___ ("1924 Tear Book," page 363)"" Transfers Registered. Year ended Consideration 31st March Number. Money. 1919 22.496 £25,197,384 1920 45,128 62,446,674 1921 ._. 55,746 81,790,065 1922 . 33,784 35,436,823 . 1923 31,081 29,980,153 . •- ■ 188.235' ■■ £234,850,997 Area, Transferred. Acres. Town and Suburban « 163,349 Country . _ 14,808,709 14,972,058 Total area in occupation, 43,655,160 acres. The usual land agent's charges are 5 per cent, on tho first £200, and 2g per cent, on the remainder. Stamp duty absorbs 1 per cent., and the remaining costs, including all legal expenses, are estimated at li per cent., so that the cost of these transfers .slightly exceeds 5 per cent, of the consideration money. If, however, it is taken at 5 per cent., the total transfer cost in five years equals £11,742,550, or £2,348,510 per annum. One of tho results of this orgy of speculation is that the bank rate for overdrafts and the interest rates from the various money-lending institutions have' been increased by at least 1£ per cent. The load,on the community is hoi covered by high prices of farm land, or exorbitant housing costs;, it is also rejected in; the rent of'shops. •It is afairly safe estimate to say that -with the exception °f long-term leases, which have not yet fallen in, shop rentals have doubled during tne pastten years. There are many cases of which.the following are examples: A shop m Courtenay place Wellington where the rental equals 15 petcent, of the turnover, and another where Mus rental, after the business was frirlv established, was increased from £6 to t>U per,week. Another boot establishment in Auckland, where the rental is 3s in the £on all sales. Shopkeepers in fh^LT? 8" haJ'? two s6urce3 from "Mch the- added rental can be obtained. Thej can pass it on t to tire consumer, or work harder themselves. Under tho Labour speculator. He renders no service to the ™mmumty Ho. holds up that which could bo.used, until the use? is willing to pay tribute, and as he would have no victims to operate on, he would cease to exist as far as land is concerned .If somebody gets something f or noth . mg. somebody has to do something for ■ncthiiw,.and the getters and doers as far a? t ?" d ]lOUSes are, deemed, at the present time are not the same people -

W. NASH, 20th April. Seol^ y , N.Z.L.P.