CROWN LAND VALUES

Taranaki Daily News, 11 March 1933, Page 7

CROWN LAND VALUES

' REVIEW “NOT FAR DISTANT.”- • POSTPONEMENT of right. •’ “I. believe the time is not far distant when we shall have to. consider a general revaluation of lands throughout’the Dominion,” said the Minister of Lands, the Hon. E._A.,Ransom, in the House of Representatives on Wednesday night, when moving the second reading of the Reserves and' Other - Lands' Disposal Bill, which suspends for one year the rights of Crown tenants to secure revaluations of their properties., ... X .. « “The fact that we may have to undertake this general revaluation is all the more reason why special _ revaluations should not be ipade a t the present time, said the Minister. “It is not my intention or desire to try to sustain inflated land values. At the present time Crown tenants are given an advantage in this way over all others, and we do not feel that this is the time when they should be offered special consideratipn. Tn view of the primary produce prices now ruling .it is not possible to secure anyfixed basis for valuation/ yet any revaluation made by . a district. committee at the present time holds good for the entire period of * the tenant s lease, and is' not subject to revision.” ' 'The Minister maintained that in many cases revaluations would not be sufficient to enable' Crown tenants to meet their obligations. He was gratified that other mortgagees as well as Crown were willingly offering their assistance to enable mortgagors to. meet the times. As an example of the instability of valuations at the present time Mr. Ransom quoted cases where reductions of from 25 to 40 per cent, had been made between 1929 and 1932, and another case where the capital value of a propertyhad been reduced from £3700 to £2860. The postponement of the right to secure revaluations for 12 months Would not mean that the Crown tenants would lose their rights jn any other respects. Explaining the suspension of the rights of Crown tenants to apply for revaluations, the Minister said that between the third and sixth years 'of his lease, the lessee had an absolute right to apply for revaluation and the decision of district committees, consisting of the Commissioner of ■ Crown Lands, the District Valuer and one person appointed by the Minister, was final. Between the first and third years after the sixth year, revaluation could only take place if authorised by a central revaluation board.

The Government had the power to assist tenants over their difficulties by remissions and Other means. Arrears on ordinary leaseholds at December 31 last totalled £788,384, and those on account of the Discharged Soldiers’ Settlement Account amounted to £473,533, making a total Of £1,261,917. Postponements totalled £340,839 (£207,994 on ordinary leaseholds .and 132,899 in respect of the Discharged Soldiers’ Settlement Account). This made the total arrears and postponements £1,602,810. Concessions granted since April 1, 1932, were as follow: Remissions, £240,236; postponements, £265,099. There was a tendency on the part of the valuers to value on the present-day value of primary produce, thus unduly reducing the capital. There were leases with a capital value of 904,706 just coming into the three to six-year period, and if they were revalued to-day it would involve a. large writing down of capital,