LAND VALUATIONS.

King Country Chronicle, Volume XXVIII, Issue 4606, 6 October 1934, Page 4

LAND VALUATIONS.

In the House of Representatives last Tuesday Mr. W. J. Poison asked the Minister of Lands if he would consider a comprehensive scheme to bring land valuations down to their proper level. That this problem will have to be dealt with some time there is not the slightest doubt. The policy of piecemeal revaluations is not sound, and in some cases leads to many injustices. For some unaccountable reason Government land valuations in the North Island are on quite a different basis to those of the South Island, and it is time that this anomaly was removed, for the North Island is suffering severely through these higher values. It is quite apparent that with the drop in prices for all kinds of primary products the value of land for farming purposes has dropped in unison. It can also be take'n for granted that this country will never have a return of the prices ruling prior to 1929. It cannot be expected that any reduction in land values will give any immediate relief to owners, but it will have the effect of a more equitable distribution of the land tax. The position now it that property owners make individual applications for a reduction of valuations and in many cases a reduction is granted. This means that those who fail to receive a reduction, or do not make application for same, have to pay more in taxes and rates. Mr. Poison suggested an all-round reduction of 25 per ce'nt. It can be said that land values have receded at least 50 per cent, in this country, but in the meantime it might be advisable to adopt Mr. Poison's conservative estimate, though it may not represent the true position. This Dominion is still suffering from the la'nd boom which existed up to 1920, in which the Government was to blame as much as the land speculators and boomsters, but any measures that have been adopted to remedy the costs brought about by the boom have only been of a scrappy nature. The land is still overcapitalised, and the position should be placed on a sound business footing. During the last five years it would be no exaggeration to state that 50 per cent, of the business concerns have been forced to write down their capital to meet the changed conditions, and the same should be done

with the land, which is not giving the financial returns of ten years ago. Any such reductions may not mean a commensurate reduction in interest, rates, and land tax, but a standard valuation of land is a matter in which the Government should give a lead.