RENTAL VALUE OF PROPERTY

Otago Daily Times, Issue 23516, 2 June 1938, Page 9

RENTAL VALUE OF PROPERTY

10 THE EDITOB Sir,— Apart from the many forms of taxation imposed by the Government, there is one that, although unjust and wide in its application, has received little or no publicity. I refer to the 20 per cent, reduction in the rental value of leasehold property imposed by the National Government as a measure to give relief to the occupants during the depression. The period of its duration was three years, and owners, with a full knowledge of existing conditions, accepted the reduction in a spirit of magnanimity, although in many cases it reduced the owners to a condition that caused great concert!. Their lot was brightened considerably in the expectation that they would get relief when the term had expired and the economic position had improved. In this, however, they were doomed to disappointment. The Labour Party replaced the National Government before the term

expired, and it has definitely refused to restore owners their due. There is no valid reason for this. Many of the contracts were entered into years ago, when living conditions were normal, and rental values were computed on this basis. We now find that, although the Government points with pride to the new era of prosperity, it and the occupants are quite satisfied to enjoy this extra benefit at the expense of the owners. The position of the latter is also intensified by increased taxation and the high cost of living, and many find themselves worse off than relief workers. As owners we do not find the Government pursuing the same policy. There is a marked increase in the rent demanded from occupiers when Crown lands are subdivided, and there is no consideration shown when there is a fall in the value of products and a big increase in costs makes it difficult for the occupant to pay the rent. It is not to be expected that owners of leasehold property will receive any assistance in their demand for re'istoration from those who are enjoying the benefit of this Injustice. We are confident, however, that the Nationalist Party, pledged to relieve us of the pressure of unjust taxation will restore what rightfully belongs to the owners. In this respect lam reminded of a remark by a son of the Emerald Isle. It was his opinion that, under the Socialist Government, the worse off we are the better off we are. and I think there was more than an atom of truth in this.-—I am, etc.. May 31. p. F. S.