LAND LAWS

New Zealand Times, Volume XXXVI, Issue 8262, 26 October 1912, Page 6

LAND LAWS

BILL IN COMMITTEE. FREEHOLD OF SETTLEMENT’ LANDS. The House wont into committee to further consider the Land Laws Amendment Bill, At clausa SO—any settlement land acquired after the passing of the Act, or any settlement land' previously acquired but not selected under the Act, may, if the Minister so determine, bo disposed of by way of sale in fee simple—air H. G. Ell said .£6,600,000 had been raised to buy land for settlement purposes. Large estates that were blocking progress had been acquired and cut up into small areas. Tho tenants of settlement land knew what they wore doing when they selected. They knew they had a lease for thirty-three years, and that they oonld get it renewed for thirty-three years without revaluation. There were 32,000 tenants under scheme, and they were doing well. ile was entirely opposed to disposing with the fee simple of tho land. The clause was retained by 47 to 20. AN IMPORTANT CLAUSE.

Tho Prime Minister tnoved the deletion of clause 31, providing that the lessee of settlement land may acquire the freehold, with, a view to inserting a more comprehensive clause. This provides that the original capital value means the amount upon which tho rent at tho rate of per cent, per annum was computed for the existing term of a renewable lease. Sub-clause 2 reads as follows:—Subject to the provisions of the next succeeding section, the owner of a renewable lease of settlement land (whether made before or after the commencement of this Act) may at any time during the currency of the lease acquire the fee-simple of tho land comprised in his lease upon the terms and subject to the conditions defined, and at a price ascertained and determined in the manner provided, by this section. - " The next sub-clause provides that the provisions in part la of tho Pill, dealing with the purchase of the freehold of lease in perpetuity lands, shall apply to the right of purchase conferred by tho new clause. The price is to be computed as follows: • , ~ (a) The Valuer-General shall cause » new valuation to made in accordance with the provisions of the Valuation of Land Act, 1938, of tho capital value of the land comprised in the lease as at the date of tho notice. (b) Trom the capital value ascertained by such new valuation there shall be deducted the value (to bo ascertain-

ed by valuation) of any improvement!, effected by the lessee and of any other improvements to which the is entitled by reason of their being e£ie<? ted after the grant of tho first lease of the land, whether such first lease was a lease in perpetuity or a renew able lease. Tho resulting sum ia here-

inafter referred to as "the presi nt capital value ’’ fc) In no case shall tho present capital value be less than the i.riginat capital value. '(d) The amount bv which the' present capital value exceeds the origin rl capital value being ascertained/ actuarial computation shall bo madi of tho present value of such excess if >ayable at tho expiration of the oxistii g term of the lease. The rate of into, est for

the purpose of such computatio i shall be five per centum per annum 'payable half-yearly. The amount aso; rtained'

by such actuarial computable., shall ho added to tho original capital value and the result shall bo the pric

Mr Latuenatm. said the House by giving tho fee simple was coma ruing a national crime.

Mr Russell said the Bill was v ,iy onesided, in that it granted tho fit- hold to l.i.p. tenants on Crown land but Jid not front it to holders of the same I -Me unor tho Lands fop Settlement Aw.- There would now be two different cl: sees of tenants under each tenure. W ,iy was there this clear line of different ? Ha agreed that this was a crime sguaet th» future of tho country. The Prime Minister said the hrei member wanted to know how it w H they were giving the right of the fre sold to the renewable lessees under the I And, for Settlement Act while refusing ) ,tp tho renewable lessees on Crown limn. 1 Did he not know the reason? c A voice: Silence. Mr Russell: lam not a meaber of your Cabinet. '■

Mr Massey: - Because the renewable leasees on Crown land are each and every oue on endowment land. Mr Russell: No.

Mr itaesey: Yea. The mans I- ■A of a man going on Crown land and t.' ring up land under the renewable lease n ido tho land endowment land.

Mr Witty

That is right. Up (o ulna

Mr Massey i Tea, and we are e - hi millions now—on* million away t im the limit. They were giving the tight of the freehold to the Li.p. men <r. - Crown . land and were not in this Pill H-ving it to l.i.p. men on settlement land, nd tho toason must be obvious. The: knew how much he could get through at one time. Hie was going to bring ’in anocner Bill next session, and L would pat the la.p. land for settlement people In that BilL The law admit: d that the goodwill as well as the impr -. aments to the tenants. T.' ■ State would lend to the li.p. settle; on his goodwill, also to the man with renewable lease. The whole of the ■ aloe of the land, with the exception of tho ox-igiual unimproved value, bel-r ked to the man on the land, and he rae not going to interiors with that i Lnciple. That was why the Qovcrnmc t were not selling the land at the prv - qt day value. It would be doing an d notice to the "settler. They would b - -asking oTra to pay twice for part of ■ ie property he occupied. Not one vealthy man was affected by the Bill. It was Che poor man who was benefit - : g, and be wanted to moke them indc;, indent, industry and energy would be re tarded. ■Mr G. Witty (Eiccarton) said v’ at giving the tenants the freehold w i making them the slaves of the moneylenders.

Mr X)avey said- he was enti »Iy opposed to the clause. No priva* ; owner would sell his land at a penny U )a than present-day value. Tho proviah ,s were

rotten on tho one hand and bribery on the Other. Mr Kuwoll asked tho Prime Minister whether ho would grant tho freehold to hoTclhni of all renewable leases, or was no going to discriminate and give the freehold to renewable lessees under the Land Tor Settlements Act only? Tho Prime Minister said he had pledgc<l himself not to sell tlio e-rulov/7iK'iit lands, and all Crown land held under renewable lease was endowment land under the Act. explaining tins armmdmont ho said it would not ho lair to sell tho Bettlement lands held on 34 years leases at the original value, wnatever might bo the caso with Ojj ,va... leases. If there had boon an increase in value of the renewable lease land pai l of that increase undoubtedly beiong.vi. to the State. The aincudnicjit did not gu ' tho land at tho original value uu_ t.iat «xx>ant, nor at tho pieKint ‘“'7 v '‘ as that would bo unfair to tho PaThe terms on which too to-en, wo ’ made were clearly laid down in t«, clause. The price would ho ascerlaui . to actuarial calculation. : nr , .Mr Russoll said the who!* ■ . bar! gone on the assumption that thero was an unoxpirwl 4 ‘. What would bo tho position it a "‘aa wanted the freehold cater lease? Did the right of' r,.“L t t q ( . as an element to be set u l claim of tho State to posatboion ot the full amount? , Mr T -. o^h jay the settler ought to something for the concession be to him by tho Mate to purSLf It was to his invest to buy. not that of tho State to ecu. Tlio Han. J. Allen replied that the tenant was not getting all tho advantage: the State was getting fiome. Mr O W. Forbes (Hum run) agreed with that newspaper which said tho question of freehold versus leasehold was a red herring drawn across tho scout, iho real question was land taxation. Iho leasehold agitation had been the best friond tho freeholder had. He behoved that tho Government m , ending the tenure question was hastening tho coming of taxation of land value**. .... Mp W. D. S. MacDonald said that before 33 years were up thero would be very much heavier taxation on land in thU country. Ho did not behove that In the next five years 10 per cent, of tho settlors would pxorcifw their privilege of securing tho freehold because they would not bo able to secure the capital. Ho would support the freehold proposals Mr Pearce (Patoa) asked the Prime Minister why ho had altered the oomhof valuation. Farmers would be better satisfied with arbitration, bat they were not pleased with Government valuations or even with the Assessment Court. This alteration would create metia“* "THE MASSEY BLOT.”

Mr J. A- Hanan said the legislation they were now dealing with was legislation which would bo known hereafter as the Maseey Blot. They were P er P ting a blunder —a wrong which would have to be undone. , The clause was read a second tune oy U to 16. , Mr R. McCallnm CWairan), moved an amendment, the effect of which was make the clause prospective, instead ox retrospective.*—Lost by 42 to lb. The danse was carried on the voices. NEW GLAUSES. New clauses were added on the motion of the Prime Minister, providing, that no person who, for the time being, c f, rr 7' tng on business as a land agent shall be eligible to be appointed, or to be elected, or to continue to be a member of a land board; that the Governor may set apart in a kauri gum district, in allotments not exceeding 25 acres, for selection; that in regard to the postponement of rent, interest at the rate of 4 per cent, per annum shall bo payable on the amount of rent so postponed, and that that amoni't. together with the interest thereon, shall be a charge on the land; on any application for the transfer of any land so charged, the board may, before approving the transfer, make it a condition that the amount of the charge or any part thereof shall be naid. A number of machinery were also inserted. LAND BALLOTS.

Mr Davey moved an amendment to the effect that no person who has been onev successful at a ballot and has sold out shall again bo allowed to take paid in a ballot.—Lost by 39 to 14. An amendment by Mr .T. Buxton (Temuka) was carried to the effect that a man holding a small piece of land may be allowed to go to tho ballot if he give* an undertaking that in tho event of him being successful in obtaining a larger piece of land than ho holds ho will transfer his emaU holding to some land Jess person. Mr Buchanan moved a new clause, which was carried, providing that any selector of lees than 640 acres of land under this Act or under the provisions of any former Act, or any tenure, might apply to the board for an additional area of surveyed or unsnrveyod land contiguous to tho land in his selection and this the board could grant without competition at a price approved by tho Minister.

An amendment by Mr E. Newman CRongitikei) was agreed to, that tho right erf purchase conferred on a selector under section 171 of the principal Act ehnll be exercisable at any time after six yeans from the date or his license. At 1.35 a.m. tho BiU was reported with amendments, to the accompaniment of load handclaps from the Government members.

The Housq adjourned at 1.45 iin.