IMPORTANCE OF FAIR RENT.

Taranaki Daily News, 26 September 1933, Page 9

IMPORTANCE OF FAIR RENT.

(To the Editor.)

Sir,—“Out of Work” in Friday’s Daily News asks who is receiving the benefit from the other work he is doing. For his benefit and those who are thinking likewise I state it is the landlord and not the so-called employer. The employer of labour is the consumer. When there is no consumption there is no production. Further, when rents are high wages are low, and all the‘labourer gets where high rents exist, as shown by the history of the world, is a bare subsistence.

In preparing any portion of land for use the greater the cost of the building site the less is left for the building; the greater the cost of the land for a holding the less is left for implements and stock. In working any portion of land the higher the rent the lower the surplus remaining; the lower the rent the higher the surplus remaining. Thus too high rent cripples building, cripples improvements of every kind, cripples development of agriculture and cripples the development of small holdings, the rents of which, higher than ordinary farm rents, often absorb too much and do not leave a sufficient return for the small holder, or even the means for developing the holding. The reduction of rents to their proper level would have the contrary effect, and would bring farreaching benefits.—l am, etc., PLOUGHMAN. Tangarakau, Sept. 22.