HIGH LAND VALUES

Poverty Bay Herald, Volume LIX, Issue 17954, 5 December 1932, Page 9

HIGH LAND VALUES

DIFFICULT PROBLEM REPLY TO BUSINESS MEN The opinion expressed at a meeting of Wellington business men that high land values and over-capitalisation were New Zealand's principal troubles, and the suggestion that the remedy lay in further reduction of production costs, brought about by a, natural economic process, involving a general readjustment of values, were the subject of some comment by the lion. A. I). McLeod, M.P. for Wajrarapa.

Speaking on behalf of the Parliamentary group which has been urging a high exchange, Air. McLeod said that lie and his group were largely in agreement with the conclusion arrived at by the business men. The trouble was, however, as many world economists had pointed out in regard to debtor countries, that when outside debt obligations could only be met from exports the industries providing such exports had to lie kept going. All sensible and investigating persons knew quite well that many farming lands were over-capital-ised, but what city men failed to realise was the fact that quite one-third of the occupied lands of New Zealand over the past three years bad been occupied at a working loss, apart altogether from interest. and rent. City men also did not realise that a further one-third of New Zealand’s occupied lands, over the same period, had failed to return bank interest or rent on Government valuation of improvements, plus working expenses. Nine out of 10 farmers who had to employ labor on their farms knew that they were compelled to offer and pay a wage that -was disgracefully low, being at least cO per cent, lower in purchasing power than at any time during the past 40 years.

WIIBRF HAS IT TAKEN PLACE? “Why is it,” asked Mr. McLeod, “that over-capitalisation in farm lands is alone given so much prominence in the press, and why mention, as did the meeting of business men, 'that a great deal of the over-capitalisation of the farming industry has been caused by the extravagance of local bodies which have provided facilities far in excess of requirements?’ Where has over-capi-talisation taken place? Let Mr. mond ami those associated with him give consideration to available official figures, and then show why it is first necessary to ‘write down farm land values.

“During the years 1920-31, the Government valuation of farm lands and improvements has gone up from £307.(300,000 to £347.000,000. Over the same years the Government valuation of cities and boroughs has gone from £160,000.000 to 13310.000,000. Between 1920 and 1931 local body debt in cities and borough's hits grown from £14,000,000 to over 00,000,C00, while the growth of same in rural districts, apart from electric power hoards and harbor boards, etc., which are as much borough as rural, .over the same period, has boon front £1,000.000 to £4,000.000,”