The Gisborne Times. PUBLISHED EVERY MORNING. MONDAY, MARCH 15, 1999. THE GOVERNMENT AND LAND VALUES.

Gisborne Times, Volume XXVII, Issue 2450, 15 March 1909, Page 4

The Gisborne Times. PUBLISHED EVERY MORNING. MONDAY, MARCH 15, 1999. THE GOVERNMENT AND LAND VALUES.

A correspondent writes drawing our attention to the fact that the Government valuations in this district have recently been increased very materially. He adds: “I venture to say that the prices put on many of the properties by the Government ’Land Valuer could not be got in the open market to-day. This is certainly, the wrong time to increase values when the- tightness of the money market and the high rates of interest wanted make it very difficult to effect a sale. The subject thus raised is exceedingly important, for it brings us to one of the worst features in the Government policy of the last 15 years. This policy has been to constantly increase valuations year bv year upon a basis that can scarcely be considered a sound one. As a result' a fictitious value has been given to land which tends to foolish speculation and other “boom” effects at the same time that the Government is enabled to unduly tax the land. There has been much discussion in Invercargill lately upon the fact that the recent valuations made under last year’s Act increased the unimproved value of properties in the borough by £284,524, or 52 per cent. Nine lots which were sold a few day® ago in the town realised £3665, or £ISOO less than the Government valuation, and it is further stated that there are numerous instances in which properties have been offered for sale at prices considerably below the values placed upon them for taxation purposes by the Government’s officials. The Prime Minister has referred the matter to the valuer lor explanation, but in the. meantime he has intimated his intention to go into the whole question of valuations throughout the country with a view to effecting an improvement. It is assuredly high time that the Government called a halt in what can only be described as its settled policy of creating an artificial boom in land values. There is no part of the country which has not witnessed a steady and continuous rise in prices, and this despite the fact that the productive value of tlio land has not increased, the prices of staple products, in fact, have even fallen. There is the same story to tell in Wellington of the undue inflation of values by the Government, and the “Dominion” quotes the price of some residential sections, 12i miles from the city as working out at from £3OO to £IOOO .per. acre-—equal to the price of UMv... ■■. ....:x

of special demand. Our contemporary 'adds:—No opportunity has been lost to raise values artificially in every part of the country. A special sale at a specially high price for a special reason is greedily seized upon by the Government valuers as the standard of value in the neighborhood. Nor lias the Government shown any inclination until now to abadon this bad policy. The next announcement of the Prime Minister on the subject of Government valuations will be awaited with interest. He must, being a man of common sense, be fully aware of the evil effects of the policy of inflating laud values, but he will probably find himself in collision with the radicals, who hate the landowner of every degree, if he decides to alter a policy 'which enables the Government to wring greater and greater sums out of the occupants of the soil. Yet the need for reform is so urgent that tlio shortsighted Radicals must be passed over for once.