The Daily News FRIDAY, AUGUST 20, 1926. THE FREEHOLD TENURE.

Taranaki Daily News, 20 August 1926, Page 6

The Daily News FRIDAY, AUGUST 20, 1926. THE FREEHOLD TENURE.

From a political point of view the important proposals contained in the Land Amendment Bill, introduced into the House of Representatives on Wednesday night, are easily the most contentious that have been presented this session. The area of National Endowment in New Zealand comprises 8,935.000, acres which, when set aside, were declared ‘‘to be preserved by the State for posterity.” This, of course, was merely a form of partial land nationalisation', and was the extreme limit in that direction to which the Liberal Party of that period could venture. The Reform Government now propose that the titles of these leasehold lands may be converted to the freehold. It would appear that by this projected legislation—and there is little doubt of it becoming law—the Government has defined for all time the one essential difference in policy between the Reform and the Labour parties. The Labour Party has frequently reproached the Government with being a farmers’ Government, but, as a matter of fact, when it comes down to cases it cannot be shown that the farmers as a whole have been given any advantage at the expense of the general community. Farmers bitterly complain that when they apply for money advances from the State their securities are examined with conservative severity and the moneys advanced arc altogether inadequate. On the other hand, the labourer* in town, if he desires to build a home, may secure an advance of nearly 100 per cent, on the cost of the building. The economic weight of argument was all against this piece of legislation, and it has yet to justify itself. The leasehold tenure involves the maintenance of a big department of executive officers, inspectors, collectors, and so on. Under the freehold system every occupier is his own inspector (within certain limits). Perhaps the only sound objection to the freehold title is that a holder may derive the advantages of unearned increment —that is a rise in land values due to State enterprises in railways and reading, the pressure of population, the growth of towns and cities in the vicinity, and so o v . The National Endowment LinJ.s That remain unleased, of which there are over two million acres, are not only unproductive but in some ways constitute a menace. They do not contribute anything to the wealth of the Dominion, nor do they provide any revenue for the Government or for the local bodies in whose territories they are situated. This, latter loss, especially when rating is on the capital value, is a. material one. We have not seen the figures worked out, but an examination might demonstrate that from Government and local body revenue, stamp duties when lands change hands and when mortgages arc effected, etc., the Freehold is a better financial proposition for the State than the Leasehold. And, after all, from the Land Nationalise?’s point of view that is all that really matters. There has been a gradual awakening understanding that so far as the State is concerned it loses nothing by giving the Freehold title; in fact its gain is certain. The State really does not make a surrender when it grants the freehold, since its power of taxation —which is only ground rent under another name—remains intact. But doubtless the Socialistic Labour Party, who urge the nationalisation of the means of production, distribution and exchange will now still mor : strenuously fight the Government on this one distinct issue that has been created. If. they do not they will not be true to their platform. It is very well kno'wn that within the parliamentary ranks of the Labour Party there are members who realise that the land policy of the party is not suited to New Zealand conditions and is altogether opposed to public sentiment, and they fear that so long as its traditional land programme is persisted in the Labour Party is not at all likely to seize the political reins in this Dominion. There is no doubt that the Government’s proposals will be welcomed and supported by the great bulk of the people throughout New Zealand.