PROPOSED LAND LEGISLATION.

King Country Chronicle, Volume IV, Issue 208, 15 November 1909, Page 5

PROPOSED LAND LEGISLATION.

The Freehold Tenure

Important proposal.* in connection with land legislation were foreshadowed by the Prime Minister in his Bud--1 get speech lust week. Schemes for converting all existing leaseholds into freehold, except in case of endowment lan-k. are to be embodied in legislation to be introduced during this sessoin. LEASE IN PERPETUITY. liii regard to lands already leased fcr 999 years, it is widely asserted that these lessees earnestly desire to convert this tenure into freehold, and I deem it the duty of the State to permit this if it can be done without any material sacrifice of its permanent interests. The conditions as to limitation of area and occupation can he effectively safeguarded even under a grant of freehold, and this being so the only question left is what should the holder of one of these If ases for 999 years pay for a title in fee simple. I therefore propose to offer lease in j perpetuity tenants, whether of lards 1 originally Crown lands, or of lands acquired under the l,ands for Settlement Act. one of Hip three following options: (a) To retain the tenure as it stands, or (h) to purchase the freehold I (within a period of two years) at a price ! equal to the original valuation plus ! one-half of (he difference between that I value and the unimproved value at the | date of exercising the option; (c) to : purchase the freeholJ at the original | valuation subject to five recurring charges in favour of the Crown, the I first charge to be equivalent to onc- : tenth of the increase in the unimproved value between the date of the lease and the expiration of the first period of 33 years, and each charge thereafter to be equivalent to one-tenth of the increase in tbe unimproved value between the expiration of each succeeding and each immediately preceding period of 33 years, the land to be com? an absoloutely uncharged freehold at tbe end of 165 years from the date of the lease. The purchase money for the freehold may be either in one cash payment or by an instalment of 25 per cent and by payment of tbe ballance with interest at 4 per cent on the instalment system prevailing under

the Advances to Settlers Act over a period of 33 years, with right to pay off in whole or in part at any time. These changes will create no personal liability on the part of tbe owner, but will be a charge upon the land, and bo payable either in cash or at the owner's option by instalments over each succeeding period of 33 years, with interest added at £•! per cent.

RENEWABLE LEASE SYSTEM. Next with regard to tenants under the renewable lease system of ordinary Crown lands; The problem before me has been to contrive a system und»»r which the freehold might be given these existing, leaseholders while securing not only conditions as to area and occupation, but to the State some reasonable portion of that unimproved value. In my opinoin. the following scheme presents a fair equivalent, from the point of view both of the tenant and the State:—The freehold so to be given to these lessees at the original value, subject to a recurring charge every 33 years, equivalent to one-fifth of tbe increase in the unimproved value, found to have taken place between these periods. Such a system, while it secures to tbe State, leaves the greater value to the tenant, in fee simple, affording an ample margin in his favour to give him the fullest encouragement. The purchase money payable for the freehold in these cases may be paid as in the case above-outlined, of the purchase of lands now held under lease in perpetuity.

LANDS FOR SETTLEMENT. Next, as regards the renewable leased of land for settlement lands. These tennts have now the right to perpetual lease, with recurring valuations every 33 years the term being half only of the term of the renewable lease of ordinary Crown land. It will be remembered, further, that these lands, acquired under the LanJ for Settlement Act, were in most cases more or less highly improved and ready for settlement, and much more fully furnished than the ordinary Crown lands with the means of communication and all the other facilities of civilisation. With these lands, therefore, the State has now, by the means of a recurring valuation, upon which each rent is to be based every 33 years, secured to it practically the whole of the increase is unimproved vaule. My purpose, therefore, in this case, was to find some equivalent in the form of freehold tenure, which would fairly secure to the State a reasonable share of unimproved value in these lands. I propose to grant the freehold at the original value, just as in the case of ordinary Crown lands, but with doable the recurring charge, that is to say, two-fifths Instead of on«-i

fifth of the increase in the unimproved value. As to European lands acquired in future under the Lands for Settlement Acts, these will be open for lease as at present, but the fee simple of land leased may be acquired upon the recurring charge system already explained. As regards ordinary Crown lands not falling within the endowment scheme, tlx* present optional system will continue.