NO GOODWILLS

Hawke's Bay Herald-Tribune, Issue 12, 29 January 1937, Page 4

NO GOODWILLS

Minister of Lands Defines Intentions SALE 0F GR0WN FARMS Ah indication of ihe Labour Government's intentions not to permit the realisation of goodwill values on Crown leaseholds was given by the Minister of Lands, the Hon. Frank Langstone, wheh speaking in North Auckland. This applies particularly to ihe stnallfarm settlements in various parts of New Zealand where men were placed on the land by Government assistanee. The Labouf Government apparently plans to grant 33-year rCnewable leaseS, but inj equity Will be allowed any man aithough alloWance will be made for irnpfovements at valuation. Lahd that is heing developed in Various paris Oi NeW Zealand by the assistanee 6l ihe Employment Pronfotion Fund is gradually coming into prdfitable use, hnd 6n some of the blocks there ate settlers who' ih .future will hot have to be provided with sustenance ffom the State, as they afe now able to. stand on their own feet hnd take their place as ordinary farmers supported by the land itself., Frdm the remarks of the Minister taade at some of the northern settlements it seems clear that legislation will have to be introduced next session to give effect to the Government ;s policy in connection with lahd tenures as applied to the Stiiail farms SCheme, which was put into operationo solely for the pui'pcse of alssisting unemployed men during the. depression. Tangible Improvements. The scheme has ihvolvOd the expenditure of large sums of mdhey taken from the unemplOyihent tax, hnd he made it abundantly plain that he would coilntenance nothing in the hature of speciilatioh wheU titles were gi^en. He would agree> hhwever, to any equity supported by tangible improvements. He Would not be a party to goodwill values. While not being definite in respect to tenure, the Minister indicated that his proposals embodied leases of 33 years, with successive right of renewal, improvements to be secured by way of table mortgage, and stoek and chattels by way of.current accOunt. These afe vaiuabie hihts* to hundreds of meh in various parts of New Zealand who have gohe on to development blocks. Now that some of the land is "coming in" they are natuxally anxious to know what future is in store for them as far as a permaneficy on the land, is concerned. The Minister was definite that he would not encourage men to walk oif their fafms with an - equity in theif pockets and take Work ifi the cities and towns now that the economic situation of the eountfy had impfoved. A EecCut Instance. To illustrate his reference to speculation, Mr. Langstone said that he had reeently refused to sign a transfer of a Government renewabld lease aithough the transaction had been recommended by the Land Board. The land, consisting of 1250 aeres, was valued by the Department at £4000, aud the holder desired to "transfer the block to his son for £14,000. « A mortgage of £5000 was Secured on the holding and there was a proposal for another mortgage of £5000 and an additional £4000 iov stock, plant, etc. "I do not agree to the transfer and never will while I am Minister of Lands," s?id Mr. Langstone. "Some of the things copneejtecf with land that have been done would make one cry; but while a Labour Government is in office no encouragement will be given to traffieking in land with spurious goodwills."