FARMERS' UNION

Ashburton Guardian, Volume 65, Issue 239, 20 July 1945, Page 5

FARMERS' UNION

REMITS AT CONFERENCE.

METHOD FOR FARM TAXATION.

(P.A.) WELLINGTON, July 19. The serious .effect of probate and estate duties on reproductive capital was emphasised at the New Zealand Farmers’ Union annual conference today. It was decided to represent that probate and estate duties be revised to prevent the exhaustion of reproductive capital. The conference urged the Government to review the incidence of taxation as it affected land production. It was held .that the present heavy taxation restricted production and prevented' the development of considerable areas of unimproved or partially unimproved land. Taxes should be removed which directly increased the costs of working land or took from the occupier an undue proportion of resources he would otherwise spend on land maintenance or development. The present method of levying taxation on farm income was unsound. It made no proper allowance for land depreciation, which was taking place on most pastoral land, and was the direct cause of “mining” such land, contributing substantially to .lowered fertility and the erosion of at least several million acres. It was decided that the Dominion executive draft petition forms on hospital rating, to be sent to all branches for signing by all ratepayers.' Delegates spoke; against a proposal to be submitted to the counties’ conference that hospital rating be stabilised on the 1939 level. The tax, being wrong in principle, and unjust, it would be admitting liability if such a' proposal were adopted. The conference decided , to send a deputation to the counties’ conference.

Reserve Bank Credits.

The conference decided to draw the Government's attention to inflation caused by the use of credits created through the Reserve Bank, i Another remit which was adopted was that the conference viewed with alarm -the departure from stabilisation instanced by wage increases, without any corresponding and immediate increase in the- monetary return to primary producers, and urged that steps be taken forthwith to increase meat and other produce prices to counteract those increased costs. It was said that the Government could not expect maximum production unless primary Producers were assured of a able return. The election of officers resulted: — Dominion president, Mr W. W. Mulholland (Darfleld); vice-president over* seas, Golonel F. Waite; vice-presidents Messrs A. Briscoe Moore (Whangarei) and E. J. Holyoake, M.P. (Dannevirke); Dominion treasurer, Mr W. Horrobin (Waikanae); past president, Mr W. J. Poison, M.P. (Stratford). All were re-elected unopposed, Mr Mulholland for his tenth term.