NEW LYNN LEASES.

Dominion, Volume 7, Issue 1886, 22 October 1913, Page 4

NEW LYNN LEASES.

COMMITTEE'S REPORT. STATE RECEIVED FULL VALUE. Mr. E. NEWMAN, Chairman of tho Lands Committee, presented the report of tho committee on the acquisition of tho fee-simple of certain lands held under reno.vable leases in Hetana Hamlet, near Auckland. (This is the matter usually referred to as tlio New Lynn Leases Inquiry, which lias engaged tho Lands Committee for somo time.) Tlio text of the committee's report was: — " That having heard the evidence of -the committee is of opinion that tho State has received full valuo for its interest in the land as proved l by the valuation made by the most competent land valuers obtainable, and -that tho statements mado by several -nowspapers to tho effect that £30,000 worth of land had been parted with for £3000 had no foundation in fact." , Mr. G. WITTY (Riccarton) said the report was not as some of tho members of tho committee thought it would have been better if the land had been left with the Crown, instead of being alionated to individuals who would have an opportunity of aggregating it. Ho had been advised that tho land was much more valuable than had been mado out, that the district was 'one that would go ahead, and that the land could bo cut up and sold at a profit. In view ..of these circumstances, he did not think it was proper that the land should 'have boon sold by the State. The Hon. D. BUDDO (Kaiapoi) said tho New Lynn settlement afforded tho Government an excollont opportunity of adding valuable laud- to the national endowment. He regretted that tho Government had not seized the opportunity. Mr. H. G. ELL (Christchurch South) said that the actuarial calculation, on which the price of the land was based arrived as nearly as was possible at the •true present value of the land,, but it took no account of tho prospective value of tho land—the unearned increment. Mr. Massey: How do you know there will be any? Mr. Ell argued that land ten miles from a city likely to carry-a population of 20,000 people would acquire a very great value. Parliament, he said,' had not been true to its trust in parting with this part of the people's land. Good Bargain for the State. The Hon. W. F. MASSEY said tho honourable member for Christchurch South had missed the point that an increase in the value of the land did not always go with an increase of population. There was land to-day within thirty miles of London which was not so valuable as it was fifteen years ago, and no city had increased so much in population. Mr. Payne: That's not tho point at all. That's not the point at all. Mr. Speaker: Order! Mr. Massey: Mr. Speaker, it will bo my duty, as Leader of tho House, to take some action with regard to tho member for Grey Lynn, and I intend to do it when the opportunity offers. Reverting to Mr. Ell s statements, Mr. Massey said the honourablo member had forgotten that tho tenant had a pwpctual lease. Further, in all those transactions 'no allowance was ever made for the lessee's interest in tho unexpired term of tho lease, and if tho land wore increasing in value the lessee's interest would bo considerable. When a lessee purchased tlio feo-simple ho practically gave up his interest as lessee. Ho (Mr. Massey) would point out also that land was not tho only commodity which increased in valuo. If the moneys to bo derived from the salo of land wore to bo taken and invested at compound interest at tho current rate, in 99 cases out of 100 tho amount would bo greater at tho end of a term than tho valuo of tho land. That seemed to dispose of his argument. Ono Hetana Block had boon purchased by tlio Ciwvii in 1902. It did not go oif well, but during tho last threo or four years the land had been taken up, but even now ho believed thero wero some sections remaining idle. It had been said that the freehold of the Now Lynn lands was valued at £300 an acre. This was not so. Somo of the best land in tho Hetana Settlement, 39 acres of it, had been sold recently for £40 an acre. Ho explained tiro method of calculation adopted in arriving at the prico at which the freehold was offered the tenants, and ho read a passage from the evidenco of the Valuer-General to the effect that "in his opinion lessees buying land from tho Crown under the proposals under review wero paying moro for it than it would be worth in an ordinary transaction between private individuals." Tho inquiry had, ho said, gone to prove that in parting with these lands the Crown was entering into an arrangement which should he for tho State a very good business proposition. Mr. J. PAYNE (Grey Lynn) roso to speak at 5.'2(j p.m., and still speaking at the. 5.30 p.m., adjournment, so that the . motion was ''talked out."