New Bill Extends Right To Obtain Freehold of Crown Property Leases

Otago Daily Times, Issue 26909, 22 October 1948, Page 5

New Bill Extends Right To Obtain Freehold of Crown Property Leases

P.A. WELLINGTON, Oct. 21. The right of those holding Crown land under leasehold to obtain the freehold of the property is preserved and extended in important respects in the Land Bill, introduced in the House of Representatives to-night. The introduction of the Bill, which is literally the weightiest measure brought into the House for some time—it contains 185 clauses—was greeted by the Leader of the Opposition, Mr Holland, with an inquiry as to whether it interfered with the traditional rights of those farming on leasehold.

When the Minister of Lands, Mr Skinner, explaining the Bill, assured the House that all Crown leases would still carry the right to obtain the freehold there were interjections from the Opposition benches of “ a Tory Bill! ” and “ a Tory Minister! ”

Mr Holland said the introduction of a Bill such as. this was when the Opposition looked for a clear statement of Government policy. Mr Holland asked for a straight-out answer to the persistent rumour that the Government intended to alter the rights of the people in New Zealand to own property. He said it was important to know if there was any alteration in the rights now enjoyed by those occupying land under ieas_hoid. Tne ngnt to land ownership was of the greatest importance in this country, with its economy founded on agriculture. Laws Consolidated

Skinner said the Bill was formidable, but in its 185 clauses it consolidated land laws now spread through 1100 clauses. It repealed 42 amending measures of past years, and itself amended nine or 10 major Acts now on the Statute Book. This revision had been contemplated for some years, and had been continually discussed since 1943. There were surprisingly few changes in the land laws but some were very important. Mr Skinner read the explanatory memorandum to the Bill which states that the Bill consolidates into one Act and amends the Land Act, 1924: the Land for Settlements Act, 1925; those provisions of the Education Reserves Act, 1928, relating to education reserves administered by a land board; the Hanmer Crown Leases Act, 1928; the Small Farms Act, 1932-33; and amendments to those Acts. It also repeals and does not re-enact the Discharged Soldiers’ Settlement Act, 1915; the Hutt Valley Lands Settlement Act, 1925: the Deteriorated Lands Act, 1925: the Fruit Farms Settlement Act, 1910, and amendments to those Acts. The Bill abolishes the distinction now existing between Crown land subject to the Land Act, 1924, and other lands of the Crown subject to the Land for Settlements Act, 1925. the Hanmer Crown Leases Act, 1928, the Small Farms Act, 1932-33, and education endowment reserves under the Education Reserves Act, 1928. All land at present subject to these Acts will come within the definition of Crown land in the Bill and will be administered accordingly. Principal Changes The memorandum states that the following are the principal changes in the land laws effected by the Bill: All land boards are abolished and their powers are vested in a Land Settlement Board to replace the existing land boards. The Land Settlement Board shall appoint one or more land settlement committees for each land district. These committees have no functions expressly set out in the Bill, but the Land Settlement Board has wide powers of delegating to the committees any of its functions. (Answering a question, Mr Skinner said that most members of the existing land boards would probably be appointed to the committees, but there was no guarantee that this would be done in all cases. To a later inquiry the Minister said there would be no elected members of the new board.) All minerals on or under Crown land disposed of by way of sale or on any tenure are reserved to the Crown and a right of way is reserved for the Crown for the purpose of working any such mineral. The owner or the Crown tenant may use the minerals for agricultural or other purposes. Except in special cases farm land or urban land may, at the option of the applicant, be purchased for cash or on deferred payments, or may be taken on a renewable lease for the term of 33 years perpetually renewable and with the right of acquiring the fee simple. Commercial or industrial land may be taken on a renewable lease witnoir the right of acquiring the fee simple or on lease for successive term- ■ l exceedin 0 vears in aggregate, and may in special cases be purchased for cash. Pastoral land may be taken on a pastoral lease for 33 years, perpetually renewable but with no right of acquiring the fee simple, or on a pastoral occupation licence for a term not exceeding 21 years. Restriction on Transfers With certain exceptions the lessee or licensee cannot transfer, sub-lease or mortgage his interest without the consent of the Land Settlement Board. In every lease or licence of faryn land there are to be implied covenants on Ihe part of the lessee or licensee to farm the land in accordance with the principles of good husbandry The holder of every renewable lease under the Bill and, with certain exceptions, the holders of existing renewable leases (including leases under the Education Reserves Act, 1928, and under the Small Farms Act, 1932-33, and for leases in p-'pecuhv) mav acquire the fee simple at the value of land as at the date of the exercise of that right. The purchase price is to be fixed by the Land Settlement Board with right of appeal to the Land Valuation Court. The right of purchase in the case for leases in perpeutny < d certain leases where the purchase price is specified therein is addition to any exisiting rights of purchase conferred by the leases but in other Cise in substitution for any such existing rights. All renewals of existing renewable leases are to be made under the provisions of the Bill. Existing renewable leases and deferred payment licences may be exchanged for tenures under the Bill. Every renewal of a renewable lease shall be at a rent based on the rental value of the land as determined by the Land Settlement Board, with right of appeal to the Land Valuation Court. Where the lessee does not accept renewal, the value of the lessee’s improvements is payable to him by the incoming lessee. With certain exceptions, lessees and licensees mav obtain a revaluation of the land, the value is determined by the board, with right of appeal to the Land Valuation Court. Limitation of Area

The existing restrictions as to the area of Crown land which may be held, imposed by part 13 of the Land Act, 1924, or section 50 or 55 of the Land for Settlement Act, 1925, are abolished, and all private land which is now subject to those restrictions will cease to be so subject. Instead of those restrictions, the future limitation on the area which may be acquired is a limitation on the undue aggregation of land. Mr Skinner, answering questions, said the Bill definitely did not interfere with any freehold clause in any existing lease. Only one Crown lease did not now give that right, and that was a lease under the Small Farms Act. Other leaseholds gave that right, although the conditions varied. This Bill now gave the right to freehold under all Crown leases. Although some might think the Bill was a deviation from the Government’s pronounced policy, it was not quite that. The Bill gives immediate right to all Crown lessees other than the following three classes to purchase the freehold:—(l) Those with lease in perpetuity leases, who had the option of obtaining the freehold by 1940; (2) those with renewal leases under the Small Farms Act; and (3) those with leases under the Education Reserves Act. When these leases run out they will revert to the .standard form of leases provided for in the Bill, 33 years at 4£ per cent., with right to acquire the freehold at any time.