STATE SETS PRICE

Wanganui Chronicle, Volume 80, Issue 68, 22 March 1938, Page 8

STATE SETS PRICE

SALE OF CROWN LEASE BID AT AUCTION REDUCED PROTECTION OF INTERESTS. [ Per Prets Association. ] OAMARU, March 19. A letter was received by the North Otago executive of the Farmers' Union yesterday from the Minister ot Lands, the Hon. F. Langstone, in reference to the transfer of Crown leasehold property in this district at a figure less than that offered at auction. The Minister wrote that in the case mentioned application was made for a transfer at a consideration of £2980, and representatives of the parties agreed to reduce it to £2500, which was in close agreement with the amount of the transferer's interest as determination by valuation. The land board approved of the transfer at the lower figure. It was against, the present Government, the Minister stated, to sanction transfers of Crown leaseholds when an excessive amount was being paid for the goodwill. The land boards were aware of the Government’s attitude, and consequently, before approving any transfer, the boards required to be satisfied that the consideration was reasonable, having regard to the value of the lessee's interest in the property as assessed on the valuation of improvements plus the value of his interest in the unimproved value of the land.

Mr. J. D. McLeod said that in this case the sale was by auction, anti on the principle shown the auctioneers should stop when the Government valuation was reached. It was a waste of time to go any further. Mr. J. S. Adams, a member of the land board, said that the Government would take no notice of a public auction. If in sale and resale property brought beyond its value and the newcomer could not pay his way, the Crown, as first mortgagee, had the right to protect its interests. Farmers must have a reasonable chance cf success. If that policy had been followed in the past they would not ha.e had the trouble they had to-day and speculation would be stopped. Mr. R. B. WalKer said that the public knew the value of property, and he asked who was going to get the land if more than one was willing to pay the price. Mr. Adams said that a ballot was the fairest way to determine that. Other speakers considered that where an auction was held and there were several bids above the Government valuation, all these bidders should be in the ballot if the price was to be reduced to the Government valuation. Mr. Walker said that under the Adjustment Commission the value was fixed on productive value, but in the following year productive value might be reduced and the commission would have its work to do all over again. Mr. R. Hamilton said that if they gave the farms for nothing to some farmers they would not succeed. The public auction price was the value of the land, and if they could not trust the Government, whom could they tust? The chairman, Mr. W. Malcolm, said the position might better be met if the Government set a definite limit to the amount of mortgage to be raised on goodwill. The present system was unjust. It was a definite breach of faith on the part of the department.

After further discussion the matter was held over and no resolution was passed.