COST OF LIVING

New Zealand Times, Volume XXXVIII, Issue 8740, 23 May 1914, Page 7

COST OF LIVING

To the Eldilor “ N.Z. Times.”

Sir, —The debate on the cost of living which took place at tho Central Chamber of Commerce was interesting in many respects, but it seems to me that most of the suggestions made were not particularly helpful. Tho most thoughtful speech was that of Mr C. M. Luke, but on at least two points it seems to me that he was wide of the mark* In particular, I beg to dissent from his statement that; “Tho chief factor in these high rents is not land, though its value is high.” Why is house rent cheaper in tho suburbs,, than in'the' town itself? Because land is cheaper, of course. Suburban land is of less value, because it is less convenient in many ways. Tram fares are an item, but not the only item. If, as some of our pseudo-reformers suggest, tramfares wore ..cheapened, the only effect of such cheap transit would be to increase land values in the suburbs. Where, then, wbuld be the benefit to the working man, who would simply have to pay in increased rent the amount saved in tram fares? It is not only in house rent that high land values affect the cost of living. Land values are inflated all over the country, and this tends to boom up prices of all kinds, for every necessity of life comes from land 'in one form or other. Timber was cheaper when land ■-values were lower. Mr Luke is certainly correct when he states that the cost of timber has to be taken into account. But that only goes to show that the high land value of tho section on which the house is built is but one factor in the situation; another factor is certainly the high prices which result from high land values ail over New Zealand. In the high cost of commodities the Customs tariff :s the most important element. This must he obvious to every business man in Wellington, and, therefore, X need not stress the point further. It is a matter of astonishment to me that the uselessness of attempting to cheapen the cost of living until wo make radical alterations in the system of land and Customs taxation is not more apparent.—l am, etc., OBSERVER.