VALUATIONS TOO LOW

Bay of Plenty Beacon, Volume 11, Issue 40, 13 June 1947, Page 5

VALUATIONS TOO LOW

SECTIONS IN BOROUGH REPLY FROM MINISTER Sections in Whakatane Bor-, ough had always had low valuations and because of this fact the Land l Sales Act appeared to be defeating its own purpose. This fact was stressed again by members of the Whakatane Borough Council at Monday’s meeting. The council has been concerned for some time over the fact that exservicemen have difficulty in buying sections for homes because owners are reluctant to sell at the Government valuation, which they consider is much below the actual value. Before the council on Monday was a reply from the Minister of Lands, Mr Skinner, who stated: “So far as your council’s suggestion that sections valued at £2OO or under should be exempted from the operation of the Land Sales Act is concerned, this proposal has been considered by the Government on many occasions. The conclusion has N always been reached that the disadvantages would . far outweigh the advantages.”

The Minister considered that the council’s proposal would encourage sellers to fix their prices within the limit of exemption and then make private arrangements for the payment of the difference between those prices and the real market value. * Cr A. J. Canning remarked that Whakatane had never recovered from the situation that developed in the depression years when there were forced sales of sections at £5. Valuations of sections in Whakatane were ridiculous as compared with the rest of New Zealand. The Land Sales Act had been devised to protect ex-servicemen, but today they could not get sections because owners of sections would not sell at present valuations. Owners were hanging on in order to get a higher price. This position should be explained to the Government.

Cr S. S. Shapley said he understood a petition had been sent forward by servicemen and that Mr Sullivan was taking the matter up. The council should take the matter further.

The Mayor, Mr B. S. Barry, said the Government would not wish to alter the Act. There could not be one law fc>r one district and one law for another.

Cr Sullivan said the council should keep at it. The ex-servicemen could not get sections because of the difference between Crown values and the vendors’ prices. The Government should certainly consider wiping out the Land Sales procedure for sections of a value of £2OO or less. After paying legal costs no one could make much by selling a section for less than £2OO.

Cr Sullivan added that he believed the Government was considering the matter of an amendment to the Act. If the council kept at it the Minister might do something. If a man was prepared to pay £IOOO for something that was worth only £IOO that was his own lookout. It was the average citizen whom the council had to consider.

Agreeing with Cr Canning that Whakatane had always had low valuations, Cr Sullivan said the Minister was trying to keep section values down to 1942 values, but building costs had gone up since then. There was only one value of a property and that was its replacement value.