LAND VALUATION

Hokitika Guardian, 28 April 1933, Page 2

LAND VALUATION

MIN ISTER’ S ATTITUDE. REVISION OF TAXATION INDICATED. AUCKLAND, April 25. An important statement of 7 is policy on land valuation and rating was made by tho Minister for Lands t-lio Hon. E. A, Ransom, when replying to a deputation at AVhangnrei last week. Mr Ransom expressed his concern over what he described as the ridiculous situations which had arisen in the operation of Clauses 45 and 50 of tho Valuation of Land Act, and his dissatisfaction with the incidence of hospital rating and land tax, for both of which, he indicated, there might shortly be forthcoming legislation :.imiii r nl improvements. The Minister also stated that Parliament might in the future consider a proposal for a pro rata distribution of receipts from occupied Crown land, between rates and interest. LEGISLATION DEFERRED Mr Ransom said that Clauses 45 and 50 of the Valuation of Land Act had caused him considerable concern, and for the last two sessions lie had had a bill prepared for sub" mission to the House.. This had been deferred, as hitherto ho had been unable to assure the Cabinet that there was any insistent demand from the local bodies for the repeal or amendment of the clauses. He agreed that .propei"ty-ownet\s were jnot making a reasonable use of the provisions supplied, and that Clause 45 in particular. had been abused to a great extent. Some ridiculous ° situations had arisen in the operation of Clause 45, and the Government had been faced with either accepting the owner’s valuation or of purchasing properties which it could not use to any purpose,

FLAT RATE REDUCTION. Referring to the suggestion for a flat rate reduction, Mr Ransom said that it must be considered that if this were brought about it would be tantamount to admitting to the rest of the world that New Zealand lands were over-valued to an extent which it was no longer possible to sustain. This would be damaging to mortgagee securities on properties, and would have the efe feet of creating a panic involving private and public body interest. In many cases a 20 per cent reduction would bring the valuation below the amount of the mortgage. Counties and boroughs which had the oldest valuations were worst off at the present time. ADJUSTMENTS PREFERRED

Mr Ransom expressed dissatisfaction with the incidence of both hospital rating and land tax, and indicated that legislation might shortly be forthcoming aiming at an improvement. He considered that the time was inopportune for fixing new valuations, and preferred adjustments to meet the conditions until times were better. CROWN LANDS RATES.

Dealing with occupied Crown lands and rates, Mr Ransom said that he had advocated meeting the local bodies, as suggested by the deputation, but had been informed that the Audit Department would not countenance this. The law was that, so soon as the Crown took possession, the land was not liable for rates. Actually, the question was as broad as it was Long, as any deficiency in the collection of revenue from Crown lands had to he met eventually by the ratepayer. In few cases did the j department collect more than a third | of tenants’ cream cheques. The Minister expressed sympathy with the idea of a pro rata distribution of receipts between rates and interest, and said that such a pro- i pn°nl might be contemplated by ! Parliament in the future. I