XN000022-1972-05-10 — Page 13

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Wednesday, May 10, 1972

"Whether or not that scarcity value should be charged to a

person who does not already have a lease of the land in question but

who is prepared to pay the inflated price

the price may be in order to obtain the land

prepared to pay whatever

-

is one question."

"But, Sir, a completely different question is whether that

same inflated scarcity value should be charged to a person who already

has a lease of the land in question and furthermore is entitled to a

renewal of that loase.

"This is a most important distinction to make, that is,

between the person who does not own the land he is buying and the person

in whose possession it already is by virtue of his holding a renewable

Crown lease," he said.

FORMULA

Mr. Woo pointed out that the formula for assessing Crown rent

for the latter should not be the same as for the former.

"If it is, then what is the benefit of having in one's lease

a proviso providing for renewal for a further term at a fair and reasonable

rent?"

The renewal clause, in such circumstances, meant nothing and

was valueloss, he said.

It was a burden because it required the lessee, if he was to

hold on to his property, to pay in order to retain that property the same

full inflated scarcity value as was paid for land coming up for auction

for the first time, he added.

"I cannot