LAND SETTLEMENT

Evening Post, Volume CX, Issue 34, 8 August 1925, Page 7

LAND SETTLEMENT

THE STATE'S DIFFICULTY

AVOIDING LOSS ON BORROWED

MONEY.

A difficulty in connection with land settlement in the Dominion was pointed out by the Minister of Lands (the Hon. A. P. M'Leod) in the House of Representatives yesterday. The Minister said that the renewable lease was the most popular form of tenure at. present, and this was on a basis of 4A per cent, on the capital value of the land, with 10 per cent, rebate for prompt payment, which brought it down to i per cent. The average cost of administration was one-eighth per cent., which brought the State's net return down to 3| per cent., when the money was borrowed in London at 5 per cent. It was pretty hard to maka it a pay able proposition to buy land and let it out on that basis. On recent purchases they had had to add at least one-third to the value without allowing for roading and survey charges to meet the cost of interest. Land bought at ±JIQ per acre had to lie raised to £15 per acre" to ensure that the State lost no money. While a proposition might look good at £10 an acre, it was very different at £10. The matter was being investigated, and he wus sure that each property would have to be. treated on its merits. When he said that he was speaking oi cultivated laud. Where, land was undeveloped it was fair that the State should participate in the cost of bringing it into cultivation. If land was producing- heavily then there was no justification for the general taxpayer contributing part of the assistance for some man lucky enough to go oh that area.