Application of Land Sales Act to Farms

Manawatu Times, Volume 68, Issue 222, 18 September 1943, Page 7

Application of Land Sales Act to Farms

Qualified Exemptions

No. 11. The hardships and heavy expense that will be imposed upon owners of land in towns by the land saies legislation may be regarded by tno Government as the only means of preventing t “speculation, ’’ though if that was its 'only real purpose a simpler and more , effective nietnod could have been adopt,- ! ed. They will bo repeated in aggravated degree in the case of farm land. For town property the legislation offers at least a promise of prices equal to values ruling in December, 19-12. For farm lands the Act threatens nationalisation, ostensibly in the interests of discharged servicemen, at prices determined by a method obviously calculated to establish a drastic reduction from present-day pricos. The owner of farm land proposing to sell his property must comply with the complicated and costly formalities of application to a land sales committee and possibly of appeal to the Land .Sales Court. Thero are two instruments of nationalisation in the Act. If an application is made for consent to the sale of a farm land, the committee may decide that it is “suitable or adaptable ’ ’ for the settlement of one or more servicemen, and in entire disregard of the interests of the other party to the proposed sale, the Government is given a month’s option over the property. On the other hand, the Minister of Lands may take ‘ ‘ any farm land ’ ’ suitable for subdivision for the settlement of discharged servicemen. Furciiase by the Government There is an important difference in the proceedings in the two cases. When land is taken on the initiative of a committee, the Minister of .bands will apparently pay only “the basic value’’ as determined by the committee. But |if the Minister takes land without resort to the committee procedure, he “shall offer such sum as he thinks lit.” If tho owner is not satisfied, lie may appeal to a committee which will determine the basic value. But if the owner agrees with the Minister that the offer is “fit,” there is no interference with their agreement. There are obvious opportunities in this provision for giving to chosen owners of farm land more generous treatment than they could expect under the other sections of the Act. In all other transactions the names of the parties and full details of the terms and price may be published, but there is nothing to require the Minister ! of Lands to disclose the prices at which .ie takes land. j.xOuies iii fowiia exempted These provisions originally applied to all privately-owned uind ana the luuiluings and otnei improvements—including town sections and dwelling houses, iiiven m its naste to get tne bin i passed tlio Government realised tnat j this projjosai would uo dangerous because so many city workers own tneir own homes. The bill was nurnediy amenued so tnat power to take land now aiqnies to - xarm land only, i'he owners of nomes in the towns are—at least temporarily—not to ue disturbed. Tneu under pressure from the isational Farty, tho Government surrendered its proposal to take one-man farms and consented to allow the owner of a property suitable for subdivision to retain the homestead block. As a result of this amendment no land may be taken “unless in the opinion ot the Land Saies Committee’’ it is capable :of subdivision into two or more economic holdings. Limited Frotection This restriction and tne concession or the homestead block to the owner do not dispose of all posibilities of hard ship, 'i'he Minister may not take a “one-man’’ farm, out if the owner offers if for sale the Minister automate cally gets an option which supersedes any private arrangements. These provisions would apply even if the proposed sale were from father to son. in | the case of a farming property capable | of subdivision the owner may have intended to divide it among his sons—who may be on active service overseas or withheld from military service by direc tion of the Government. He also may be forced to surrender his land for disposal by the Minister of Lands. Native land may not be taken under the Act, but otherwise the only exception from the comprehensive scope of the legislation is that land owned by any serviceman may not be taken while ho is serving outside New Zealand. This protection will expire as soon as he returns to New Zealand. Land owned by men who served in the 1914-1918 war or in the present war may be taken for the settlement of other discharged servicemen.

If application is made for consent to a transaction, it would appear that if the committee or the Court alters the terras of the agreement, whether as to price or otherwise, the agreement is not enforceable by either party.