I have been reflecting on my recent interactions with mayors from across the wider region and see that there is a remarkable similarity between conversations being had. All of them are seeking to answer the same question; what value can be added over the next three years? Over time these
Letters: Turn backs on negative energy
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Locals were keen to check out Rotorua's new farmers' market. PHOTO/FILE
I would remind G.J. Philip (Letters, January 4) of the dangers of interfering with the natural laws of supply and demand when it comes to housing and land supply.
After the Second World War many items were strictly rationed including building materials. Houses could only be sold for the official Government valuation. But in those days most males wore a hat. The buyer and seller would reach an agreed price and difference above GV was handled by the seller putting his hat on the floor and betting the buyer that he could jump over the hat for the agreed extra amount!
Again, sometime in the '60s or '70s a Labour government brought in a form of capital gains tax on land sales which meant there had to be a minimum time of ownership before a sale could be made without having to pay the tax. This had the immediate effect of taking up to 90 perc ent of available building sections off the market. I know as I had a section which I had been trying to sell and was outside the requirement to pay the tax. As soon as the new tax came into effect my section doubled in value, was promptly sold - to the government as they needed to build a new police station in that area.
The message is that when there is demand no matter of legislation will solve the problem when there is a determined buyer. Legislation to control prices will have a negative effect.
JOHN DYER
Lake Tarawera