EATING ORAKEI LAND.

New Zealand Herald, Volume LXVII, Issue 20518, 20 March 1930, Page 15

EATING ORAKEI LAND.

LARGE REDUCTION MADE.

EFFECT OF LAW AMENDMENT. An amendment to the land laws legislation has necessitated the making of a large reduction in the ratable value of Crown land in the Orakei subdivision, and, as a result, the Auckland City Council will draw in rates from those lands only about one-eighth of the revenue originally anticipated.

The area concerned totals 415 acres, aud was shown in the valuation list as having an aggregate annual ratable value of £5122. That figure was arrived at by estimating the freehold value of the property at £102,440, and assessing the annual ratable value at 5 per cent, of the total. Since the valuation was made, however, Parliament passed an amendment to the Land Laws Act, limiting, the term " occupier," so far as it pertains to lands leased by the Crown, to tenants with grazing rights only. The result is that the city valuer, Mr. P. F. Notley, has been compelled to assess the ratable value at the rent actually paid by the licensee to the Crown, which, in the case of the Orakei land, is £6OO a year.

The total area of the Orakei Road district, which was taken over by thei City Council in 1928, is approximately 670 acres, and, with the exception of a small area Of private and native lands, the area is known as the Orakei Garden Suburb. The 415 acres on which the reduction in rates has had to be made lies to the east of the sections which have so far been offered at auction, but some roading work has already been done in anticipation of the area later being offered in building lots. The 415 acres are in eight lots. It ,was claimed that, if a local body assessed the rates on the 415 acres on Ihe 5 per cent, of the freehold value basis, the rates would be so high as to prevent any possibility _ of the land being rented within the limits of a borough or city; hence the amendment in the legislation was recently made. Had that not been done, it is considered that the area at Orakei would very soon become overgrown with noxious weeds, that the Crown would not have a tenant and would thus lose £6OO a year, and that the Auckland City Council would lose rates as the CroWn would not be liable. As the Orakei area- is not liable for special rates, until half the Government land/is sold it is probable that tho rates to be paid on the aggregate area of 415 acres will be under £7O a year.