The £14,000,000 Squander

Hokitika Guardian, 24 May 1921, Page 1

The £14,000,000 Squander

(Tho Liberator.)

Even a thick and thin supporter of the Reform Party like the Auckland “Herald” uses strong terms in condemnation of the Government s spending of £14,000,000 in buying improved land for soldiers. As has been pointed out tb<, productive area of the Dominion has not been substantially incieased by this action. Even the Minister of Lands does not feel too comtortable on account of the high prices paid. Thq result lias been that most of tins money has gone into the pockets of a comparatively few land owners, possibly between 50 and 100 people. Probably no bigger blunder bus been committed in the political history of the Dominion than this indiscriminate orgy of land purchase. Possibly no other single proceeding will more seriously jeopardise the financial security of the Dominion in the crisis which is coining here in common with other countries. The buying of land at prices which might bo'justified if the peak returns of primary produce, were permanent, certainly means serious losses when these prices drop, as they are now doing. AYith every decrease in the selling values of wool, meat, butter and cheese it means that thousands of pounds of this £14,(100,000 are vanishing into thin air. The entrance of the Government as a buyer of improved land is admitted to have been a big factor in tho soaring values of land in 1920. The putting of this money into circulation also created a spurious prosperity which has boon quickly followed by a period of reaction throughout the Dominion. Tho Government is, therefore considerably to blame for the economic conditions of business and trade at the present time. If our suggestion has been carried out it would have had a twofold result. A tax of 3(1 in the £ on the unimproved value of land would in the first place have brought in over £3,000,000 of revenue, which would have been available for repatriation expenses. The pressure of the tax would have kept down the selling price of . land wherever they pleased at more reasonable prices. The speculations and inflated values would have been kept m check the Government would have been saved most of the £14,000,000 and a period of depression in the Dominion less felt.