The Timaru Herald SATURDAY, OCTOBER 13, 1909. OFFER OF THE FREEHOLD.

Timaru Herald, Volume XIIC, Issue 14056, 13 November 1909, Page 4

The Timaru Herald SATURDAY, OCTOBER 13, 1909. OFFER OF THE FREEHOLD.

The proposals made by the Minister of Lands'm the Budget of terms on which Crown tenants may acquire the freehold of their holdings arc a compromise, that seems to bo dictated by political expediency rather than principle. The Opposition, under the leadership of Mr Massey, the out-and-out advocate of the freehold, was understood to bo determined to raise the question in somo shapo or other if possible; and a-count that was made somo time ago elicited that thero is an overwhelming majority in the House.of Representatives prepared to give tho ordinary Crown tenants the freehold; and a smaller majority, ; but still a majority, willing to extend the principle to the (holdingsunder the Land for | Settlement Act. The Minister admits that, in tho latter case, "tho chief advantages to tho State of tho present tenure are that it secures the existing condition as to limitation of area and occupation. The valuo of a revcirum postponed for 999 years, is not very appreciable, even where the Stale is the. reversioner. In my opinion the conditions as to limitation of area and occupation can bo effectively safeguarded, even under a grant of the freehold, as I shall later show, and this being so, tho only question left is what should the holder of one of these leases for 999 years pay for a title in fee simple." The "chief advantages" mentioned must bo tho only advantages; for what profit "there may bo derived from the rentals over tho cost of interest paid for the purchase and installation fund, must be absorbed by the expense of special administration. And those chief advantages can lie otherwise secured. It is proposed to mako limitation of area and occupation a matter of principle in all future disposals of Crown lands; and the tendency of thought on the land question 'is in the direction of applying tho principle to all lands. The Minister proposes to offer tho Li.p. tenants tho ri"ht to purchase at a price equal to tho original cost, plus half the difference between that cost and the present value—"improved value" tho telegraphed : copy of tho Budget had it, hut it must bo tho "unimproved value. It has been pointed out that in many cases the present tenants have already paid tho whole, or a large portion of that difference, and they are not likelv to pav half of it again in order to secure the freehold of a holding which tho payment of .a largo sum.for "goodwill" shows they can continue toehold at a low rent. The State, however, can say that it had nothing to" do with that bargain; and the tenant has his choice of remaining a tenant. On the other haiid : .the Minister's expressed reason for, offering the option of purchase remains, in these" as' iii other cases—the State's reversionary interest is of no value, and it might just as well sell at the original valuo and clear itself of so much debt for each particular piece of land. The position brings oub the fundamental error of tho lease-in-porpctuity .system. It, was adopted without ■malting allowance for the people/s preference for freeholds, and now that the system has brolien down, injustices are inevitablfe. An alternative method of securing the freehold of l.i.n.' lands is nrovided, which will be tempting to many people. This is purchase at the original value, the land being subjept to a charge at the end of each of five terms of 33 years, equal to one-tenth of..the increase in •unimproved value during rich term. "Thirty-three

yoars! That will last my time! I'll buy now, and lot tho next man pay up," will be tho thought that will occur to many a tenant. This system involves a very great speculative clement, as it is impossible to foresee what land values will bo thirty-three years hence; but in tho meantime it is a tempting offer, much moro tempting in many cases than tho alternative of paying at once the original cost and half the present increase of unimproved value. Tho remark that the new proposals aro dictated by political expediency lather than by principle is founded on the exemption of the socalled "endowment" lands from the application of the option of tenures. ] f it is a sound i>rinciplc that tho State tenant of one farm should havo the right to become a freeholder, it must bo sound in the caso of another; entering the transactions regarding oaeh of thom under different headings or in different books, docs not affect the land, or the mon on tho land.