THE VITAL PROBLEM

Te Awamutu Courier, Volume 56, Issue 4046, 11 May 1938, Page 5

THE VITAL PROBLEM

deferred payment licenses. INJUNCTION OF MINISTER. THE NEW LEGISLATION. Holders of deferred payment licenses in Te Kuiti, Taumarunui and Otorohanga were strongly urged on Wednesday evening by the Minister of Lands, the Hon. F. Langstone, and by Mr. K. W. Low, to apply under the legislation enacted last session for revaluation of those licenses, granted under the freeholding movement of 1922. Mr. Langstone stressed that if no effort was made to obtain relief under this legislation, then property holders could not expect to have further sympathetic consideration extended to them. Mr. Low stressed the seriousness of the burden placed upon the town by reason of the high valuations upon which the freeholding movement was made. “It is no use comparing the Borough indebtedness of Te Kuiti was that of other towns,” he said. “We owe £BO,OOO to the Crown, and you have to add that sum to the Borough indebtedness to find the true position.” In 1908 sections of Maori lands were leased to the Europeans for a period of 21 years, and loans were raised for street works, water reticulation, etc. In 1917, a new valuation of the town showed an increase that was very disquieting to the leaseholders, who foresaw that exorbitant rentals would be charged when the leases expired. Therefore, through Parliament an application was made for the Government to purchase the natives’ interest© and grant deferred payment licenses. The valuations for the purchase of the natives’ interests were made in 1922, a peak period, and they proved far above even the 1917 valuations. At that time £BO,OOO had been borrowed to provide Borough amentities—no account was taken of this. Nor was there any appeal from the valuations. As an instance of the position, Mr. Low said that he had been in communication with the Minister in regard to a section of land just past the Kelvin Hotel. Purchased at £3500 from the native owners, it was last year valued for probate at £697. Then, because the building on a Rora Street section burdened with £4500 to £5OOO ! had been burnt down, no one had been prepared to finance building, the area had reverted to the Crown, and the Borough received no rates. “Can you wonder why people do not build and buy property in Te Kuiti when these conditions prevail?” continued Mr. Low. ‘‘Through reversions the Crown owns 400 feet of the main street frontage, 138 sections in the Borough, and is not liable for rates except in special cases. I have often wondered why the Borough Council does not take more interest in this vital question; after all, Rora Street is the gold reef of the Borough treasury.” Mr. Low said that some relief had been hoped for under the Rehabilitation Act, but it became evident that no redress was likely where the land was weighted with improvements. However, recent legislation had been enacted by the Minister of Lands, the Hon. F. Langstone, who had given very sympathetic consideration to this problem, and he was prepared to accept the Minister’s statement that the new enactment would meet the position.

Views of Mr. Langstone.

Mr. Low then called upon Mr. Langstone to give an outline of the new legislation. The Minister was greeted with applause. Mr. Langstone said that the free holding .enure in Te Kuiti, Taumarunui and Otorohanga presented identical problems, and for some years residents of the town had petitioned for relief. What Mr. Low had said was mainly true—when loan money was spent, it created the unimproved value on which the town sections were purchased. When the Mortgage Adjustment Act was passed, he pressed for and was successful in having the “D.P.” licenses included within its scope. If the property holders of these three towns had applied for relief, he believed it would have been granted, despite the instances quoted by Mr. Low. One of the reasons for taking this action was that the Adjustment Court and the Court of Review had greater powers than a Committee set up by a Minister. However, the fact remained that the great majority had not applied.

Mr. Langstone had then taken steps to have Section 216 of the Lands Act extended to include the tenures in the three townships. This meant that a Committee was going to be set up, consisting of the Commissioner of Crown Lands, the district valuer, and one other, to deal with the land values. Mr. Langstone’s idea was that there should be uniformity of land values. “We want to give ‘D.P? license holders a fresh start,” he said. “They must make application within six months, because after that we are not going to reopen the mater. And we w’ould much rather that these sections were occupied and paying rates than in the hands of the Crown. I am hoping the ‘D.P.’ license holders will

not refuse to make application this time. I am sympathetic, and my Department is sympathetic.” He continued by stating that the Committee would have to preserve the equity of the nation, but also the rights of the individual. “It is no satisfaction for my officers to go on perpetuating a set of values when we know those values do not exist,” he continued, evidently referring to the necessity of writing down the price placed on Crown owned land in the township. “I hope that the ‘D.P? license holders will take advantage of this legislation, because I can promise that while conserving the State’s interest, the Committee will be sympathetic and will give them a fair go.” On Mr. Lorigan’s motion a hearty vote of thanks to the Minister was carried.