The Hawera Star. WEDNESDAY, NOVEMBER 12, 1924. LAND VALUATIONS.

Hawera Star, Volume XLVIII, 12 November 1924, Page 4

The Hawera Star.

WEDNESDAY, NOVEMBER 12, 1924. LAND VALUATIONS.

Delivered every evening by 5 o'clock In Hawera, Manaia, Norinanby, Okaiawa, Eltham, Mangatoki, Kaponga, Awafcuna, Opunake, Otakeho, Manutahi, Alton, liurleyville, Patea, Waverley, Mokoia, Whakamara, Ohangai, Meremere, Fraser Road, and Ararata.

Ixitul valuation is a subject of very great importance in a district such as this, and lately a good deal has been heard of the need for a revaluation of thot-e South Taranaki counties which were last valued during the boom period. It is considered that the high valuations are having a bad effect, and that they are preventing the return of more stable conditions. Those whose task it wfas to value the land were faced with great difficulties owing to the abnormal period when farms were selling at prices far above their value and when everything was booming. The valuers no doubt took what must have appeared to them to be conservative views, and their decisions were far below the prices at which the land was selling. But in spite of this the valuations then made are too high now, in the opinion of people who are in a position to judge. Wc have consistently pointed out that there is a great danger in having the

prices of land too high, -and that the price of land, should bear a fair relittionsiidp to its productive capacity. From conversation with people interested in the district we learn that in their opinion the existing valuations in the Hawera County need urgent reconsideration, while the other countiee in South Tarfanaki require a readjustment as early as possible. Some owners have gone to the expense of having Separate valuations made, whiofi they are quite justified in doing if they think that the official valuations fixed in the boom period are too high now that conditions have changed. The matter of Patea harbour rates and the effect of high valuations in Hawera County and Borough bias beeD mentioned; at meetings of the loeal bodies, and the Government ha® been requested to have a revaluation made, but is apparently not inclined to hasten to undertake the work. As far as harbour rates are concerned, the method of striking it is to take the total valuation of the rating area and to strike the rate accordingly.. A reduction in Government valuations in Hawera County and Borough would perhaps not lead to a very great reduction in the harbour paid by each owner of property, but it would improve the ratio paid by the various contributing counties and boroughs; in other words, the raising of the revenue would be more evenly distributed over the whole rating area. The present incidence of rating is regarded as inequitable because Patea is more directly concerned and because the harbour means more to them. But Hawera is more concerned with valuations' in reference to land tax and hospital contribution. Instances have been recently cited by county councillors where private revaluation has resulted in a very great reduction of taxation to the taxpayers concerned. Between 1914, when Hawera County was previously Valued, and 1919, when the present figures were compiled, an increase was shown of 65.73 per cent, m valuations. This snrelv is a good and urgent reason for seeking a revision. In regard to hospital contributions, the position is such as to call for immediate amendment. In the case of Hawera County, on present valuations owners pay no less than one-fifth of - their county rates to oover the levy for hospital purposescapital, expenditure and maintenance. Naturally ratepayers loyally accept the position that provision was necessary for the new hospital in addition to maintenance of the old, hut their contention that this should he on valuain the counties and boroughs concerned made in the same year must be acknowledged as sound. The question of land tax is also another argument for revaluation. The Prime Minister, in a memorandum on the subject, written to Mr. Corrigan, states that only in three cases in the county did owners “exercise the right of private valuation.” The council and the landholders all consider that this should not be necessary. Mr. Massey adds that “few sales have taken place at prices less than Government valuation since the last valuation.” It b, however, .well known that there has keen comparatively very little business done in farm lands since the last valuation was made. In addition, Mr. Masfiey states that “the existing Government valuations do not as a rule affect persons who purchased properties at inflated prices, as mortgage deductions leave no taxable values.” That mia-y he the case, but we are more concerned with the cases of farmers whose land was valued at a higher figure because of the inflation due to speculation in broad acres. They have a legitimate cause for asking for immediate revaluation. These cases form a sound argument for stressing the urgency of the request. The only desire of the local bodies concerned is that they shall be put on a position of equity with neighbouring districts. But the most important side of revaluing the counties and boroughs of South Taranaki would, we think, be the effect upon _ the prices at which farms are bought and sold. Many of the oldest and most experienced farmers hold that the be<T of land for dairying in the district is worth about £65 per acre. Some say £6O per acre: and others fix their maximum at £7O for the very best. The high Government valuations tend to, keep the price of land up, and if land is priced above its proner value difficulties a-re experienced by those who are trying to make a success of their farming. Rentals are naturally higher and the effects are far-reaching. We think that the question is one of urgent importance, and it is to he hoped that the Government will undertake a revaluation at an early date for the good of the whole district, which has suffered heavily in the pas t few years through land being at too high a price.