STATE HOUSING LAND DEALS

Dominion, Volume 34, Issue 45, 16 November 1940, Page 13

STATE HOUSING LAND DEALS

Hutt Valley Purchases

FIGURES QUOTED TO COMMISSION

Continuation Of Inquiry

Statements that the Department of Housing Construction had paid three times the Government value of market-garden and farm lands in the Hutt district-in acquiring these areas for housing were made by counsel yesterday before the commission hearing evidence on the Lower Hutt Borough Council application to include another 6836 acres within its boundaries. The commission concluded its third day yesterday and will continue on Monday.

Counsel for the Hutt County Council, opposing the petition, cited figures which he said represented the purchase prices and the Government valuations. The reply of the departmental officer being questioned was that a fair price was paid, having relation to that obtaining on the open market. He declined to give the figures in the way of evidence or the names of the vendors or the areas, but said this information could be supplied to the commission confidentially. Later it was announced that the commission and the counsel engaged would be supplied with the names and the areas. The chairman of the commission is Mr. A. M. Goulding, S.M. The other members are Mr. H. W. Mackintosh, Commissioner of Crown Lands, and Mr. J. P. Mcßae, District Valuer, Valuation Department. The parties are represented as follows: Lower Hutt Borough Council, Messrs. E. P. Bunny and N. T. Gillespie; Hutt County Cojincil, Mr. T. C. A. Hislop; Hutt Valley Producers’ Association Ltd., representing the market gardeners, Mr. T. P. McCarthy; Messrs. W. G. and G. R. Kells, owners and lessees of various pieces of land affected. Mr. E. F. Rothwell.

Mr. H. K. Bach, Lower Hutt Borough Council engineer, continued his evidence.

To a question whether the existing borough water supply could meet the demand of the areas sought, he replied that it depended on whether the market-gardeners wanted the borough supply at once. He knew nothing of supply being refused to land owned by people named Balls, which was part in the county and part in the borough. He did not know they were told that if they wanted the water they must pay the cost of transporting it incurred some time previously. Mr. McCarthy: Many of these market-gardeners have their own water supply, septic tanks apd fire-fighting facilities. What benefit would they get from being taken into the borough? Witness.: They will enjoy the benefits arising from the areas surrounding them being brought into the borough: tar-sealed roads, footpaths and all the amenities. They already have a tar-sealed main road; do you consider an extension to their streets an advantage to market gardeners?—They will appreciate it very much. At what cost? —None. Their rates are now Id., 2d. and up to 3d. in the pound, unimproved.—They may be no more under the borough. ■‘We would like very much to be assured on that point,” counsel said. Hill Settlement. Continuing, Mr. McCarthy asked Mr. Bach whether as an engineer and not as an officer of the council, he considered there were any insperable difficulties in the way of the Housing Department in erecting houses on the flatter part of the western hills. Mr. Bach: No insuperable difficulties It would be healthier than on the flat?—l could not give an opinion on that as an engineer. Mr. Bach said that any benefits the county could offer could be better offered by the borough with its Municipal Corporations Act powers. To Mr. Rothwell, Mr. Bach said that the erason for including the area which took in the property of the Messrs. Kells was with a view to the immediate town plan and ultimate settlement. Mr. Hislop: To make a pretty picture. To the chairman, Mr. Bach said that the Lower Hutt Borough Council bad taken steps to have discussed at the municipal conference the restriction and control of artesian bores so as to preserve water for domestic and other uses and prevent waste. The trunk sewer had now been taken beyond Nae Nae Lane and was proceeding up to August’s farm, which the department had acquired. Mr. Rothwell: You know that August’s farm has been leased by the department? Mr. Gillespie: A tenancy only has been created, terminable by notice. 7000 Houses Wanted. R. B. Hammond,-town planner and consultant of the Housing Department, said that before the construction of the trunk sewer now proceeding, no sewerage was available north of the borough. The borough had co-operated with the department in streets and footpath construction. Once completed these should be municipally controlled and water and sewerage should also be under the one control. There were 700 unsatisfied applications in the Wellington district for State houses. Apart from the Hutt •there was little housing land available, but the department bad acquired a great deal of what there was. There were 500 sections available at Johnsonville. Tawa Flat would not be suitable for State requirements for reasons apart from the quality of the land. The department had acquired the Crawford block at the back of Strathmore Park, Miramar, where 500 sites were available. Excavation and reading costs were a considerable factor in land purchases. The department, had secured 000 level acres north of the Lower Hutt Borough as well as a considerable hill area. Negotiations were pending to purchase 70 acres more. The department had completed 870 houses in the borough at September 30: there were 167 now being constructed in the borough and a like number in the county. Mr. Hammond said that the department had not received too much co-op-eration from the county, which, however, was not consulted as much as the borough because of its limited powers. Million Gallon Storage. The department, he continued, was considering a one million gallon storage provision in the eastern hills which it was suggested would be taken over by the borough. Mr. Hislop: So that the land t lie borough seeks would be served by water provided by the department and handed, over to the borough free or cost. Is that sufficient reason for ab- ,

sorption?—Not in itself, but there are other factors. A tentative survey of Tawa Flat indicated that there was room for 2500 houses, but the cost of providing services would be so great as to make the cost of the sections uneconomic,, Mr. Hammond said. In some parts of Tawa Flat the department had been offered sections at £lOO each, but development costs would double this. The flat area at Newlauds had not been investigated since the opening of the new gorge road: before that the access was not good. As for the area south of Mornington. a lift would be needed to get to it. The department had the best of the Wilton block and a start should be made any day. / Proposed Transfer to Kuku. To Mr. McCarthy. Mr. Hammond said he recalled the publication of a notice of intention to take marketgarden lands, given by the Minister of Public Works last year. He remembered something of the proposal to transplant the growers to Kuku, near Levin; everyone did. Mr. McCarthy read to the witness a Ministerial statement of that period that if no other land suitable for market gardening had been available within an economic radius of M ellington the Government would have had to prevent the Hutt Valley market-gar-den lands being used for any other purpose. Mr. McCarthy: The land was then to be taken for your department?—The Government did not take it. But that'was the objective. The onlv alternative land offered was at Kuku.—The department is not concerned with alternative areas, but only with housing. . Mr. McCarthy: It is only concerned with taking land and making no other provision. Mr. Hammond said the department had enough land in the valley for present requirements, probably for two or three years, but was prepared to negotiate for more at a suitable figure. Mr. McCarthy: Is not your department behind this petition?—l would not say that. It is actively supporting it?—No, it is neither supporting nor opposing. Mr. Hammond said it was his department’s view that an area it was settling was better under municipal control; the county was not properly equipped to deal with the administration involved . He was not aware that the department originally suggested that the area' covered in the petition be extended to include land up to Taita Gorge, but the department did hold the view that the area must inevitably be brought under municipal control. Mr. McCarthy: Is it not a fact that your department is prepared to pay almost any price for lands in the mar-ket-garden area? —That is entirely wrong. I am told by growers that members of your department told them that if they did not sell out they would be rated but? —I am not aware of that. Your department is acquiring land at thrice the Government valuation? — I am not aware of it. Confidential Information. Can you supply a list of the areas making up the 163 acres of marketgarden land purchased and the names of the former owners? —I am not prepared to give that information in evidence, but to make it available to the commission. Why?—lt is a matter of departmental policy. The chairman: You will band in the information to the commission as confidential?—Yes. Mr. McCarthy said this would not suit him. The petitioner’s counsel had made out a case regarding the number of market-gardeners stated to have sold out. His clients said that explanations could be given in practically every case; in some cases the sellers had not been actively engaged in gardening. The chairman: Would the names and the areas only suffice? Mr. McCarthy: Yes, we have the prices already. The chairman informed Mr. Hammond that he could not see why this information should be withheld. It might be very relevant. Mr. Hammond: I prefer to discuss the matter first with the director of the department. The chairman: I must rule it as evidence admissible before the commission, which wants it known. Mr. Hammond: I must discuss it with the director. The chairman: If you decline I cannot force you, but I cannot see any objection. After all, the information could lie obtained indirectly by search, and I see no objection to it being given publicly to the commission; the prices paid are not wanted. Figures Quoted. Mr. Hammond said that the department had paid a reasonable market value for lands it had purchased in the valley. Mr. Hislop: Do you know the one where the department paid £27,000 for an area on which the Government valuation shortly before was £9OOO? — I- think I do. Is it a fact? —I won’t commit myself. You won’t contradict me?—Not at this stage. You would probably be unwise to. The purchase was of 110 acres at £27,337 against a Government valuation of £936o.—That was not the Housing Department valuation, but the Government valuation. Mr. Hislop then cited these purchases, the Government valuation being given in parentheses: 22 acres at £lO,OOO (£3900) ; 4} acres at £3500 (£1125) ; £6250 (£2600) ; 59 acres at £14.000 (£3815). To the chairman, Mr. Hislop said that the last-named property was an ordinary farm which had been considered some time ago to have subdivisional possibilities and had been fully developed, kerbed and channelled. Now the kerbs and channels were overgrown with weeds. To the objection of Mr. Gillespie, the chairman said that the figures were relative to the question of whether or not economic pressure had driven the department to buy the lands. Mr. Hammond said that defendant paid a fair market value, having relation to the price which would be paid on the open market. He had known the department to refuse to pay a price for lands and for these to be sold in the open market at a higher figure. Mr. Hislop: All this purchasing tends to push up the price throughout the district. —No. some years ago it was higher. Shortly before proceedings closed for the day Mr. Gillespie announced I hat the Director of Housing Construction bad agreed that the informal lot) sought should lie made available, but that in view of other parties to the transactions not being readily available he wished that it be kept from publication. Mr. Hislop, to the chairman: I have always an objection to secrecy, unless there is a very good reason. The chairman: If the information is given counsel and the commission it should meet the position. Mr. Hislop said that counsel were already in possession of the information and if it became public by any other source, then this could not oe attributed to breach of confidence by

those already possessing the information.

H. R. Climie, M.I.C.E. (Loudon), B.Sc., Eng., (Glasgow), civil, engineer iu charge of Housing Department engineering operations, said that the trunk sewer started would ultimately serve 150,000, including part of the north area. The proposed million gallon reservoir would have to be paid for by the borough and a water rate struck, if it went to the borough. He considered a metropolitan water board for the supply of Wellington and the valley inevitable. The department was not experiencing difficulty with building supplies except in minor matters. Mr. McCarthy: The culmination of increased costs and a shortage of supplies must lead to a slowing down of the Government’s housing policy?—l cannot answer for that. Tn some questioning of witness Mr. Hislop pointed out that the rates in Wellington were 50 per cent, lower than in Lower Hutt.

In his opinion, said Mr. Climie. the engineering staff at present available to Ibe county was not. adequate to administer the services of water and drainage to the closely settled areas. As the county staff was at present, the administration of these areas would be more efficiently dealt with by the borough and at less cost. Council Alarmed.

<l. W. Andrews, mayor of Lower Hull, said his council was definitely alarmed at the industrial development permitted in Hie county to the south and close to the borough boundary. Here a building containing highly inflammatory material and used by a large staff was (‘reeled iu uoii-llre-resisting materials. This firm was refused permission to erect a similar building iu the borough and. conforming Io borough requirements, bad creeled a fire-resisting building. This was within half a mile of Hie other building in Hie county. Tile position was considered so alarming Hint largely for the protection of its own ratepayers the borough council bad installed special fire-lighting mains to the premises referred to, just outside the borough boundary. Mr. Hislop questioned whether Mr. Andrews' opinion as to the administration of the county was relevant. If anyone was discontented with the county administration then the legal provision existed at election time to turn it out. The commission adjourned till