Bill Before House Provides For All Land Sales Control To Be Removed On June 30, 1952

Wanganui Chronicle, 6 October 1950, Page 5

Bill Before House Provides For All Land Sales Control To Be Removed On June 30, 1952

Measure For Purchase Of Land For Servicemen; Market, Not 1942 Values

PARLIAMENT BLDGS.. Lo,t Night (P.A.)-All land sales control is to be removed as from June 30, 1952. This is provided for in the Servicemen’s Settlement Bill, which was introduced in the House of Representatives tonight.

Compensation for land acquired by the Crown for settlement of ex-servieefen is to be based on the market value instead of the 1942 basic value, set out in the Servicemen’s Settlement and Land Sales Act, 1943. Answering an inquiry by Mr. Skinner (Buller) the Minister of Lands (Mr Corbett) said the Bill was unique in that it not only gave effect to National Party policy but honoured promises made by the previous Administration. An important thing was that the Bill would end the injustice of farmers having to sell in 1950 land priced at 194’2 values. Vendors would thus receive full compensation. The Bill also determined that land sales control would end entirely in June, 1952. The original measure said the control would be removed five years after the end of the war and it wa» appropriate that just over five years after the end of the war the House should have before it a measure to fix a definite date for the abolition of land sales control. Mr. Corbett said he thought farmers would not accept with pleasure the continuation of the compulsory provision of the old Act, but farmers would agree that the Government had done its utmost, having regard to its obligations to ex-servicemen. The fact that farmers would receive present day values did not get away from the fact that there would be compulsory acquisition of land in cases where every xvenus. of negotiations failed. The Bill provided that all land tran sactions would be on a free market basis, with a provision for the Crown to Intervene where it deemed necessary in the interests of ex-service-men.

Mr. Corbett said that in his administration of the present Act he had endeavoured to see that every protection was given to family life and family Interests and those interests would be fully protected under the amended legislation. He said there was provision for determining 1942 values of properties acquired, so that the necessary writing down could be carried out at the time an ex-service-man took possession. There was provision against undue aggregation and against the sale to absentee owners of land suitable for ex-servicemen. Continuation of control until 1952 would allay any criticism that ex-service-men would suffer under the changes now being made. The land committees of both the R.S.A. and Federated Farmers had discussed the Bill in its formative stages and while It would not be wholly acceptable to either they agreed in principle with the measure now introduced MANY QUESTIONS. Mr. Skinner asked what method of valuation was to be followed by land valuation committees? Were the present produce prices, including the prevailing high wool prices, to be embodied in land values, as they would in future be determined Was there a formula to help the valuation committees in arriving at current prices? Were the inflationary effects of the present temporarily high wool prices to be written into marginal land values? If that were done it would be tragic and would lead to a land boom such as had not been known in the lifetime of any member of the House. Was the seller to bid his own price? Mr. Holland: It puts an end to the black market. Mr. Skinner said that might be very Important to the Prime Minister but to him the most important thing was that we should keep our feet on the ground in regard to land values. Would anyone honestly advocate an increase in the price of marginal land in sympathy with the high wool prices now prevailing? If that were done many people would lose a tremendous amount of money when the day of reckoning came.

Mr Skinner said there would be great difficulty in finding a basis for the valuation of any land which might be taken compulsorily immediately after the Bill became law, although he could imagine the system might work reasonably smoothly once it was well established. Mr Corbett said values would bs determined by the valuation committees as before, with the Land Valuation Court as an appeal body. Values would be arrived at in the same way as values were determined before that stupid theoretical method of land sales was put into effect. It was a method which for many years was considered p. very fair way. Provision is made for the determination of the 1942 basic value in accordance with this Act because discharged servicemen will be settled at that value subject to their giving a suspensory mortgage for the balance of the market value.

The Bill provides that the value of farm land is to be the .current market value. It is to be determined by the Land Valuation Court as the sum which the land might be expected to realise if offered for sale unencumbered, on such reasonable terms and conditions as a bona fide seller might be expected to require, and as a willing but prudent and informed purchaser might be expected to accept. The Bill re-enacts with amendments the law relating to servicemen’s settlement and land sales. The part of the Bill relating to land sales applies only to sales of freehold farm land and to farm land in West Coast settlement leases. An explanatory memorandum states that control is to be exercised not to fix prices but to establish the principle that farm land suitable or adaptable for servicemen’s settlement is to be farmed personally by a discharged serviceman, or by a child or grandchild or the present owner. Sales of leases or licences of Crown land are also subject to this principle. Compensation for land taken compulsorily for soldier settlement may be increased beyond the current market value by the Land Valuation Court because of any special loss caused by the acquisition. An owner who receives notice that the Crown intends to take his land is required to see that it is not allowed to deteriorate before being taken over. A section in the part of the Bill dealing with the control of sales of farm land requires a local land valuation committee to refuse an application where the transaction would cause undue aggregation of farm land. The Bill repeals the Servicemen’s Settlement and Land Sales Act, 1943, and its Amendments. Matters relating to land taken before the Bill comes into force on November 1 and transactions entered into before that date, are to be dealt with as if the old Act were still in force. EQUITY WRITTEN DOWN. Mr. Corbett said hypothetical farm budgets such as hsd been devised under the existing legislation would not be the subject of debate in future. They were never of use except to be juggled around by the theorists and were of no value to practical men in valuing farms. They had been used as a means of writing down a man’s equity in his property. Land values will be determined in the fame way as they formerly were determined by compensation courts, or by assessors before the hypothetical system was introduced by the last Government, said Mr. Corbett. Mr. Skinner said the free market isystem might do for ordinary buyers but how would it apply to compulsory State purchases for servicemen’s 'settlement? He saw many difficulties ■ if land acquired by the Crown had I to be valued by the valuation com- | mittees without any established basis i io guide them. I The Bill was read a first time.