Page 2631 - Week 09 - Wednesday, 25 August 1993
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MR MOORE: There is an interjection from Mr Kaine to say that I am the only person in the world who would see this as a subsidy. No, Mr Kaine, that is wrong. Four major inquiries into the leasehold system had exactly the same view; that to have betterment at less than 100 per cent, to have betterment that takes into account potential value, is an implicit subsidy to the developer in that particular circumstance.
Madam Speaker, the problem that has been identified in terms of the current system of administering the leasehold system is perfectly legal. I must point that out, Madam Speaker, because some people, I think, misinterpret this. I do not suggest for one minute that any developer has done the wrong thing in terms of their development. That is the law and they work according to the law. Since there has been a series of inquiries into the leasehold system, since what is in the public interest is clear, on all the information available, it is appropriate that we change the law. That is why, Madam Speaker, I have introduced this Bill today.
At the risk of repeating some of the things I said yesterday, this same goal could have been achieved by the Minister with the minimum of effort. For the Minister it was simply a matter of changing the regulation. Personally I feel that it is better that it be done by legislation, rather than by regulation, because that makes it very clear to people who read the legislation that there will be full value of any change of purpose returned to the community. The other issue that I think is rather important in this Bill - I find it ironic in terms of the current situation for revenue raising in the Territory - is the current resistance of people to an increase in rates. It is a perfectly understandable resistance. Madam Speaker, the Government has, at its fingertips, a much better way of raising revenue by levying this form of betterment.
The other important thing about this Bill is that it introduces the term "betterment". It was interesting that in the recent debate the term "betterment" was the common term. It has been used constantly. A dictionary definition of "betterment" makes it quite clear that it applies to an increase in the value of land. I think, therefore, that it is appropriate that we do not talk about the added value but that we use the word used constantly in our community. Therefore it is appropriate that that word be put into the legislation. Somebody who is trying to work out, perhaps for the first time, what we mean by "betterment" can look at the legislation and read that:
"betterment", in relation to a lease to which a variation is proposed, means the amount (if any) by which the market value of the lease would increase if the proposed variation were made, disregarding any increase in the value of the lease arising from the possibility of a variation to it;
That is very simple and straightforward. Anybody reading that can see what we are talking about when there is a debate on betterment. Madam Speaker, this matter was canvassed yesterday and most of the issues were raised. With that in mind, it is with pleasure that I recommend this Bill to the house. I move:
That this Bill be agreed to in principle.
Debate (on motion by Mr Wood) adjourned.
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