F.U. Plan To Avoid Inflated Land Values

Northern Advocate, 21 August 1943, Page 2

F.U. Plan To Avoid Inflated Land Values

iP.A.) WELLINGTON. This Day. A deputation of members of the Dominion Executive of the New Zealand Farmers* Union, headed by the president (Mi W. W. Mulholland) waited on the Prime Minister (Mr Fraser) the Minister for Finance (Mr Nash' and the Minister for Lands (Mr Barclay! yesterday and placed before them the following proposals as a basis for legislation to deal with possible undue inflation of land prices: (1) To prevent inflationary prices a limit ot the amount of mortgage that could be registered against any property was proposed. (2> A transfer tax on farm lands, commencing at 9U per cent of the difference between the consideration in the'sale and the previous sale, if the two sales were within two years, the tax to be reduced by 5 per cont per annum for each year exceeding two in the period between transfers. The same principle to apply to residential or business property where the price increased by more than 10 per cent. (3) All farm property for sale first to be offered to the Crown for settlement by returned soldiers, the Crown to exercise the right to purchase within one month. (4) Interfamily transactions to be exempt from these provisions. (5) The provisions to operate not more than five years after the war.

The deputation on the question of acquisition of land for soldier settlement suggested that compulsory acquisition should be effected tinder the Lands for Settlement Act with amendments. if necessary, to meet present conditions. The deputation also asked for a survey of lands suitable for soldier settlement with particular attention to blocks of land suitable i'oi co-operative group development.

Nash Reviews Proposals

Replying to a question by Mrs Poison (Oppn., Mid-Canterbury). Mr. Nash said in the House of Representatives lasl night that the Government had considered the proposals submitted by the Farmers’ Union. The first proposal that mortgages should be limited, would have no effect cn those who could pay the full price but those who could not pay the full amount would be very badly affected. Obviously it would cut out all the advantages of loan margins that the Government had encouraged for some years through the State Advances Corporation. It would mean that the man with a little cash but. a lot. of ability would be at a disadvantage. The second proposal of the transfer tax made him wish they could have had it during recent, years provided existing sales had taken place. The suggestion was not that the Government would collect 90 per cent but that sales would not take place anti the Government, would collect nothing. It was a revolutionary proposal and. if the Opposition moved it. as an amendment, the Government would think about accepting it.

F.U. Criticism of Mr. Nash "Mr. Nash's criticism of the Farmers' Union proposals indicates that the Government's main object is not i<: stop inflation but to got control of land and to provide jobs." said the Dominion Secretary for the Union (Mr O'Shea) in a statement. “It is amazing that Mr. Nash's main objection to a transfer tax is that sales would not lake place, and that the Government would get nothing out ol the tax. I thought that one of the main objects of the measure was to check peculation in land. “Mr. Nash objects to our suggestion Tecau.se lie admits that sales'would not take place if our suggestion were adopted. This means that the Government's objective would be achieved, and Mr. Nash’s criticism is a strong argument in favour of our proposals. “So feir as limitation of mortgages is concerned, if the amount of mortgage which could be registered against any property were limited, then prices paid for land would be kept in check. Is prices are kept in check, then there is no need for 100 per cent, advances. Why does not the Government adopt the principles in the Lands for Settlement Act? The only reason I can think ot is that they would have to treat everyone alike. Mr. Nash said that our suggestions had received careful consideration. Could this be possible in the time since the Government received them?" concluded Mr. O'Shea.