XN000022-1971-02-24 — Page 12

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Wednesday, February 24, 1971

FALL EXPECTED IN CAPITAL REVENUE

Significance of Instalment Payments For Land

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Capital revenues are expected to fall in the next financial year

from $310 million in 1970/71 to $196 million, and a reduction in revenue

from land sales is responsible for most of the difference.

Sir John Cowperthwaite, Financial Secretary, said today one reason

for this was that a "substantial part" of the Government's land sales next

year was likely to be either of major urban sites or of industrial sites

and in both cases, payments by instalments instead of by way of lump sum

were generally allowed.

Much of the industrial land would be in the Now Territories, where

most new leases involved a land exchange elerent.

One "interesting and important feature of the extended use of

instalment sales was the annual income from such instalments that the

Government had been building up. Because of the different payments periods,

but the total of annual it was difficult to give an "exact picture"

instalment payments at present on government books was $57 million a year.

On top of that, interest due on outstanding instalments amounted

to $19 million a year, credited to the Interest Head.

Sir John said those were "substantial" figures when one considered that total land sales amounted to $42 million in 1967/68, and $40 million

in 1968/69.

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