PROPERTY AUCTIONS

Nelson Evening Mail, Volume 80, 28 November 1945, Page 4

PROPERTY AUCTIONS

BIDS IN EXCESS OF VALUE MR W. A. BODKIN S CRITICISM 'GROSS ABUSE OF PROVISIONS OF ACT” (From Our Parliamentary Reporter) WelHngton, This Day. The practice of bidding large amount* at auction sales of property In the belief that the price would be later reduced by Land Sales Committees was roundly condemned in the Houa* of Representatives by Mr W. A. Bodkin (National. Central Otago), while speaking on the Servicemen’s Settlement and Land Sales Amendment BUI. Mr Bodkin described such actions as reducing the whole procedure to an absurdity and a fiasco, and advocated the Imposition of a substantial penalty upon persons guilty of the practice. Mr Bodkin said he would like U draw the Minister’s attention to the situation, and gave examples which he stated had come to his notice. One property, he said, was certified as being worth approximately £I2OO. A solicitor went to the auction determined that, whatever the amount, the bid he put up for his client was going to be the last bid, and the property was knocked down for £2OOO. He indicated that he was not worrying about that, but was relying upon the Land Sales Committee to put it right. That was an absolute gross abuse of the provisions of the Act, and he did not for a moment think the Minister would stand for it, said Mr Bodkin.

Ip another case, he continued, a property certified as being worth approximately £BOO also brought about £ 2000. That was simply trifling with the whole position. H e would like to see the Bill amended »a that the land sales committees would have power to impose a substantial penalty in cases where ther e had been gross abuse. Perhaps provision could be made to entitle the committees to impose a penalty of 50 per cent, of th® difference between the actual value as certified by the Land Sales Committee and the price at auction. Mr Bodkin mentioned the situation of the ex-serviceman who attended such auctions, and encountered a person who was prepared to bid irrespective of costs. The conditions obtaining at present were an abuse of the whole procedure that had been set up in the interests of servicemen. What had been going on at some auctions could be described as sharp practice. “It was never contemplated,” said Mr Bodkin, “either by this House Or by the Legislature, that this procedure could be taken advantage of by somebody to get into a favourable position. It reduces the whole thing to an absurdity and a fiasco.” Later in the debate the Minister of Lands (Mr Skinner) said that a case such as those described had somehow slipped through the Land Sales Court in Otago, and he thought that that should fix the reckless bidders. The majority of committees would not consider such cases at all, and threw them out. The vendors could dispose of the property by some other means.