SOLDIERS’ LAND PURCHASE.

Poverty Bay Herald, Volume XLVIII, Issue 15748, 13 February 1922, Page 8

SOLDIERS’ LAND PURCHASE.

MEMBER DISEASES TRANSACTION

TAX VALUATION VERSUS PUR CHASE .PRICE.

IFrom our Parliamentary Reporter.'. WELLINGTON, this day.

Suggesting that although he disclaimed any intention of making a charge of impropriety, but admitting that lie had raised a suspicion of corruption, Mr McCallum, member for Wairau, referred in strong terms in the House oil Saturday to the purchase of Motutara estate, north of Auckland city, from Sir Edwin Mitchelson. He made a prominent point of the fact that the land tax valuation Was not published, and that the Government refused to state it. This raised an interesting issue regarding the relation of taxation value to (lie purchase price of estates. Mr McCallum said that the purchase price .was £38,000, that he was informed this was excessive, that early next session lie would move for a return showing the taxable value of the property, and that if this warranted him doing so he would ask for a public inquiry. Mr McCallum acquitted the Prime Minister, Minister of Lands, and the Lands Purchase Officer of personal responsibility in the matter. He explained how in 1920 a Bill had been passed to" allow the State to purchase property from members of the Legislature, provided that all the contracts were placed on the table of the House. THE CASE STATED.

Dealing with this transaction he had before him a paper containing a copy of a letter from the Land Purchase Officer to Sir Edwin Mitchelson, agreeing to, purchase a property of 3000 acres, but not the homestead block, which was required by the owner, for £38,003, the payment to be £15,000 cash and the balance of £23,000 in war bonds, which he ’ assumed were non-taxable. Sir Edwin Mitchelson replied two days later to the effect that as the price and terms were in accordance witli the offer he had pleasure in accepting them. Mr Howard (Christchurch North) : Ho would have pleasure! . Mr McCallum explained that the property was cut up into 13 allotments, but he had been told there were only seven applicants. » The Minister of Lands: Absolutely wrong. Mr McCallum : I am talking about the first instance. The information, he added, came to him from one of his electors, who went upon the property before it was cut up. The vendor, he added, was a member of the Refoim party, and had received honors uid emoluments. The Prime Minister: What are the honors and emoluments? Mr McCallum: K.C.M.G. and salary. 'Hie speaker added that he did not say that the business could riot bo cleared up, but lie Wished to put the facts before the House. He was told that the 3948 acres would originally be worth 5s per acre. The land looked very fertile, but it had to be manured and manured to keep it up. The price bad been got because the land looked well worth it, but the purchasers had not known that t> keep the land up to that standard required an enormous expenditure annually. He was told that the only fertility in the land came from manuring. .'.Mr Maunder (Marsden) : Wrong, wrong absolutely. * Mr McCallum said these were the frrits supplied to him by an elector, and sufiported by a gentleman who was a Reform candidate at the last elections. WHAT WAS THE LAND TAX? “I ain not suggesting any wrong doing,”, continued Mr McCallum. 1 am not making any charge that it was not warranted, but here was the point which would clear up the whole matter. What was the land tax value of the property? That is what I want to kpow.” If the vendor were paying on

the value within a thousand or even within £SOOO of llie price at which lie sold lie (Mr McCallum) would say nothing more about it. lie would, however, still consider a man.an avaricious man for beating soldiers for a greater amount than be was being taxed oil, but if there .were a big discrepancy it would l>e a scandal so far as the vcndoi was concerned. He would not go further than that, for lie was not impli eating the Prime Minister at all. The Prime .Minister had behind him strong inlluenccs, and if lie could got- rid ol them lie would be a truly great Liberal. These landowners used him for tlieii own purposes. He made no charge, but they must in their public life shun the appearance of evil. His only desire in raising the point was to keep Parliament clear of any suspicion of corruption. Early next session lie would ask 'for the land tax value of the pro perty, and if it warranted it lie would ask for :( public inquiry." The Premier: You will get your inquiry, and get it soon. Mr Guthrie, Minister of Lands, said the purchase was carried out on ex actly the same lines as every othei transaction. The property was specially examined, because ho was not in favo: of buying very much property at liigl prices, though the price in this case was not high, having regard to the carrying capacity. Mr McCallum : Will you give us the information placed before the Cabinet — the land tax value?

•Mr Guthrie : There is nothing in it. That is not the point. Mr McCallum (emphatically) : It it the point.

Later Mr McCallum said he Mould withdraw if the Minister would show them the land tax value. Mr Massey: You won’t withdraw. You will not have the chance. Mr Guthrie added that he regretted exceedingly that Mr McCallum had made such a mistake. The land was north the money even during the slump times which were upon us. Mr McCallum :' Give us the land tax value, though you do not rely on it. Mr Guthrie: The land tax? It might have been valued for taxation purposes five years before. If you can prove that- the land was not worth the money paid for it—that is the point, and you have sound ground, hut the valuation for land tax purposes lias nothing to do with it. The valuation might liav< been made ten years before, and before it urns improved. I am perfectly satis fled it was a good transaction, and what is a further satisfaction to me is that there are no complaints from the soldiers on tlie land. Mr Witty : Why cannot u’e have the valuation of all estates purchased my the Government? I have asked for thin return time and again, and it has been refused. People should know what was the valuation prior to purchase, and what they were paying land tax upon. Mr Massey: As a practical man you ought to know that is of no value. PREMIER ASTOUNDED.

Tho Prime Minister replied to the matter further on the third reading of the Bill. ‘‘l was astounded,” bo said, ‘‘when f beard the bon. member make these statements, and 1 think it, would have been very much better if lie bad come right out in (lie open and made a definite charge.” Mr McCallum : f have made it.

Mr Massey: What is it? Mr McCallum : That there is suspicion that you were beaten by Sir E. Mitchelson oil that land. 1 would witlidraw it if you produce the land tax value.

Mr Massey: The lion, member ought not to be allowed to withdraw. 1 am going to have Ibis probed to the very bottom. Having gone so far Hie lion member ought to. go further and frame a definite charge. Wliat lie has done so far reminds me of the old proverb about shooting from behind a fence. He ought to come out in the open, and make a definite charge, or even il he Mere to

make a definite charge under the shellci of Parliamentary privilege T would hi glad to have it thoroughly gone into. Mr .McCallum : 1 have done only m\ duty to my constituents. I have said that there is a suspicion you were beaten by Sir E. .Mitchelson over that land purchase. I exonerate you arid tin Minister of Jauuls. Mr Massey: 1 don't want to be ex onerated. 1 am a member of thc\ Cab in el, and I stand by my colleagues. Having dealt with the 1920 amend rnent to the law, 31 r Massey went on U say that the suggestion that the lane should he purchased first came from tlx Auckland board, which .was composed o. particularly good judges of land. THE LAND TAX ASPECT. Coming to the question which hat been raised in regard to the land tax valuation, the llrime Minister gave at an illustration of its relation to tinselling value an experience of his own. Many years ago he purchased a block o land, practically iju its raw state, foi £2 per acre. Its land tax value vat probably even lower than £2. 11* spent no end of money on the land, arid after everything was counted he prob übiv ( puL into it £2O per acre. That land to-day was worth £45 per acre. How would the land tax value compare will wliat he had pul into the land, or what was the selling price? To buy at the valuation would probably be a good thing for the purchaser, because lit Mould get the area- at less than tin real value. "What happened in. my own case Mas tlie same in tho case ol this estate, the value Mas going up all the time.”

31 r McCallum: There is land in tin vicinity valued at 5s per qcre. 31r Massey: Sandhills on the coast. He could not understand a member’s running away with the idea that tin land tax value had anything to do with the purchasing value, because if times were prosperous it must be lower than the real value. The Prime 3!inister went on to say that in the case of this land, as in othei cases of purchase in the Auckland dis tried, three of the best men in Auckland Move got to inspect the property, and they \<ilued it at a higher price than il was sold to the Government. 31r McCallum : Give us the valuation. NO DETAILS GIVEN.

.Mr Massey : T know wliat he is thinking of. There is an election approaching, and he wants to justify the fact that, he is opposing* a popular Govern ment. lie wants to throw mud, and leave Hie imputation that we are doing something wrong because mo do not supply the Government valuations on properties we have purchased. It. is not lhe taxing value we want, but the selling value. 31 r McCallum: You say you will not supply it? All- .Massey: I am not going to give il to you for the purpose of electioneering. There is only one .way to get tho value, and that is to value it at the time. He went, on to say that members of Parliament could not be too careful of their reputations as public men. This transaction had been perfectly honorable and straightforward, and it would be the Government’s duly to show that this M iIS so.

Mr McCallum:. Give me the opportunity. lam sorry the session is ending to-night. Mr Massey : We arc not going to wail until next session to go out- on the pub lie platform. It is for you to prove your charges or apologise to Sir Edwin Mitchelson.

Air AlcQallurn : My case is founded on the land tax only. .Mr Massey: You said we bad been beaten by Sir Edwin Alitchelson. Mr McCallum : I still say so.

Mr Massey : That lie used influence or did something improper and wrong to get. ii larger price than the. land Mas worth. You must prove your. case or apologise, or take the consequences at

;ar ;is the public are concerned. I will give you an opportunity of proving il lefore the most impartial tribunal in the country. Mr Glenn: You are concerned now.. Air Alassey: I believe, the bon. gentleman lias made the mistake of his life. Air McCallum: 1 will take the uonse[ueiiees. The Prime Minister, in conclusion, paid a high tribute to the character of sir Edwin Alitchelson, adding: “I haye tried to clear the reputation of oik .vliom I am proud to call my friend.”